What are we legally allowed to do

Question

I am a newbie got my license mid 3rd quarter 2014.  I am curious, can a licensed agent put a contract on a property subject to without going through his brokerage?  I am just wondering what the real estate agent can legally and ethically do?  I am attempting to get into investing, and can't imagine how my brokerage wouldn't frown upon me buying a property and flipping it, without the brokerage being involved, is that even legal?

Chris Simmons · Answer

If you buy it, (take title etc) you can do what you want with it, assuming you operate within the handcuffs that are your license.  I am about to get my license.  Since I am ethical, the handcuff matter is a non issue for me.

If you buy the house and it is listed on MLS, you get a part of commission as the selling agent....and pass on whatever is contractually obligated to your broker.

If you buy a property that is not listed on mls or otherwise represented by a broker, provided you make the necessary disclosures to the seller that you are a real estate professional, good for you.  Buying that house as an individual, from an individual that knows you are a licensed professional is no different than you buying 1000 shares of stock.

If you come across a property you like while representing a buyer, you must advise that buyer of your interest and can not pursue that property until the buyer advises you they are no longer interested in it.  You serve your clients first.  If you are the buyer, then you serve yourself....after the necessary disclosures.

Same thing with rentals.  Except for disclosures and updating my website with the necessary realtor and broker info, my properties are my properties.  I only have to run the properties i am paid to manage for others through the broker.

Oye Alle · Answer

Thanks those replies posted real fast, will speak with my broker.

Guy Gimenez · Answer

Is it legal?  Yes.  Does it violate company policy? Perhaps, but these are two different issues.  Read your company policy manual or speak with your broker.  My agents buying and selling investment properties must still adhere to  certain policies in order to have coverage under my E/O insurance.