Licensed agent and wholesaling in Texas question

5 Replies

I am a licensed agent in Texas and have a FSBO I want to wholesale. Can I use the TREC contract and if so:

- Do I put in all of my Brokers information?  If I am doing the deal as an investor and not an agent, not sure if I can leave the agent part out.  Obviously I will disclose but not sure of the verbiage

- Would I put the buyers name (me) as "my name and/or assigns"?

Thanks and if you have anything else to add, let me know.

@Arissa Pedroza

Just a some quick questions Arissa.  

Wouldn't you be better served to partner with an experienced investor and learn to do it right rather than trudge along and hope you don't make a mistake?  You can't learn to fly an airplane by asking a few basic questions of experienced pilots and you can't learn to invest in real estate by asking a few basic questions of experienced investors on BP.  

I only ask because your question leads me to believe you're very, very new to this and don't have the guidance necessary to keep you out of hot water with either TREC or the law.  

I always recommend you learn from other's mistakes rather than your own...it's a lot less expensive.

Originally posted by @Arissa Pedroza :

I am a licensed agent in Texas and have a FSBO I want to wholesale. Can I use the TREC contract and if so:

- Do I put in all of my Brokers information?  If I am doing the deal as an investor and not an agent, not sure if I can leave the agent part out.  Obviously I will disclose but not sure of the verbiage

- Would I put the buyers name (me) as "my name and/or assigns"?

Thanks and if you have anything else to add, let me know.

 Great question @Arissa... as a  licensed Broker/Investor/Realtor® here's what the Code of Ethics has to say...

  1. Use a State Contract (Article 9) 
  2. Give em comparables (Article 2)
  3. Tell them you are acting as a principal in the transaction (Article 4) 
In the state contract, write down the following as I do....

"Buyer does not intend to reside in premises, but will lease, rent, assign, repair or sell for profit.

Buyer is a licensed Agent in the State of ______

Buyer is not acting as a principal in this transaction.  No representation is expected or given.  No commissions are being paid. "

Try that... and oh yeah.. don't listen to people who AREN'T Agents giving you advice.

Have a Powerful Sales Day! 

@Arissa Pedroza

Yes Definitely use the TREC Contract much Easier. Always follow the law.  

@Arissa Pedroza

  you should simply ask your managing broker how they want to handle these kinds of transactions.. opinions on BP are just opinions.. you have to work with the company policies unless your   your own broker.

BTW guys...not looking for a fight here but a principal in a transaction has no obligation to use the State form regardless of whether the principal is licensed. As a broker (but acting as a principal), I use the state form about 85% of the time and my attorney drafted form the remainder. 

And if you tell the seller you're not acting as a principal, you may just have to explain your role in front of an ethics board because the seller could reasonably assume you're acting as a fiduciary.  Always inform the seller you're acting as a principal and not as a fiduciary and as such, you represent ONLY your interests. 

As @Jay Hinrichs stated, you better review your broker's policy manual before embarking on this adventure.

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