Becoming licensed during sale of my house -- disclose to buyers?

7 Replies

Quick question for anyone that may happen to know the answer. This pertains to Pennsylvania.

I currently have my latest flip under contract. I also just passed my RE exams and am looking to sign on with a broker. I understand that if I'm a licensed agent I must say so in my listing. What happens, though, if I become a licensed agent during the listing of my property? Must I change the MLS description to disclose this fact? Must I disclose this to my buyers in some other fashion?

I was thinking of waiting until I close on the property before pursuing the license, but I'd rather just get it if it's not too much trouble.

@Mark Beekman , not sure the exact laws in PA. I'm in CO, and we have to disclose if we have a license. The time to disclose is no later than when you sign the contract. Most licensees disclose in the broker remarks. However, it appears the house is already listed/under contract. Does the listing agent know you are getting licensed? They would be procuring cause for this sale, and will come after you for commission. 

If I were walking in your shoes, I would wait until this closes to get your license, or get it anyway and let it close without anything coming back to you. Passing the test and getting your license are two different things. In CO, your employing broker holds on to your license, and if you don't have one, your license is dormant.

As for disclosure, I believe you have to hang your license with a broker for 2-3 years before going out on your own. They are responsible for your license, so once you figure out who to go with, you can ask them their recommendation. (I couldn't find exact law on this, and CO is one of the more progressive RE law states in the union. What I could find about PA, reads very similar to the corresponding CO law.)

First rule of any licensee: DISCLOSE!  You now are technically a legal 3rd party in any transaction.  Although I'm not sure as to the State regs. I am very sure on the ethics.

BEST LUCK,

Originally posted by @Billy Runyan :

First rule of any licensee: DISCLOSE!  You now are technically a legal 3rd party in any transaction.  Although I'm not sure as to the State regs. I am very sure on the ethics.

BEST LUCK,

Yes!!!

When in doubt, DISCLOSE!!!

What's the big deal?...Disclosure is always the best policy

Of course disclosure is the best policy, but how do I disclose it? Some sort of written letter?

The other thing I'm concerned about is the liability of being labelled an "expert". Being that I would be receiving a license during the contract period before closing, I don't want to confuse or give buyers anything that they can use against me in any way.

A related question: if a licensed agent is selling a house through their LLC, is disclosure still necessary?

Disclose!

If you're licensed and sell through an LLC... DISCLOSE!!!

Just disclose to protect yourself.

What would happen if the buyers move in, there's problems with the house, then they find out you were licensed/getting your licenses and they feel you knew something that you should have told them because you're an "expert" but you never disclosed you were an agent...

Well, my guess is you wouldn't be making it very far in the real estate business.

Disclose and be done with it!

If the house is already under contract, then write up an amendment explaining your situation.  Have both parties sign.

DISCLOSE and save yourself for any legal issues that could ever come up.