California Agent/Investor questions

2 Replies

Looking for help/opinions on any legal issues to being both an investor and agent in California.  I'll be more specific with a little back ground.  I wanted to become an active investor and did some direct mail 4-5 months ago.  As I talked with people and researched I realized that being an Agent would allow me to monetize things more and also allow me to not worry about any "brokering without a license" issues.  

I Was finally able to take test this week and passed, the bar was lower than I even expected.  Why they make a process that could be finished in a week stretch out to 4 months I have no idea, if you can do it faster it should be allowed.

Anyways, I've had an agreement with a local broker to hang my license there for a couple months.  The broker has no problem with me being an investor focused agent, we both just want to make sure I have my paperwork straight.

I'm hoping other investor/agents can chime in and let me know if there are any issues I need to handle?  We have a call into CAR right now, not sure if the broker was able to get answers yet.  The list:

Can i use standard real estate contract as an investor?

what type of disclosure do I need on my own business website, marketing materials, business cards?

There were a couple others but i'm drawing a blank right now, feel free to add to my list.  I also need a good RE attorney that can help me with contracts/legal issues for doing terms deals (owner finance, lease option, jv etc).  I'm in a small town and we don't have anyone that specializes but also not sure I can effectively work with an attorney at a distance? 

Anxious to get going but these issues are going to delay me until I can get answers. 


Hi Lee,

Congrats on passing your test. It sounds like you are going about this in the right way. When making offers, etc. just make sure to disclose that you are a real estate agent. 

Yes, I believe you can use the standard CAR form.


Acting as a principal buyer or seller and not as an agent allows you to use any form you want

There's no law that as a principal buyer in California forces you to use a CAR form.

You should disclose that you're licensed agent and you're not acting as if it is Sherry agent you're acting as a principal buyer

You can use the CAR forms with addendums

Finding the right attorney is not an easy chore in the state of California because most attorneys are used to working with agents

To find my attorney for my business it took me six months, pretty aggravating.

And I had to train him on my agreements with lease options, AITDs, subject to, partnership agreements, joint venture agreements, etc.

I do apologize I can't give you his name 

Continue to work as you are and congratulations on getting your license

A suggestion on getting your attorney is go to your local REIA meeting and ask for the best contract attorney for subject to, Lease options, partnership agreements, etc.

Best of luck