Can I sell a property by owner in NY if wife's an agent?

Question

Here's the scenario:

I'm an investor, my wife is a licensed NY real estate agent operating under a broker in the Albany area.  I'm currently working on my first flip deal, and want to have a yard sign out front with our company name on it during construction, saying something like "Coming Soon", and/or "We Buy Houses", etc.

Ultimately, when the property is ready to be put on the market, I intend to use my wife under her broker to list the house.  But SUPPOSE, during construction, someone wants to buy the house before it's on the market.  Can I legally sell it to them as a for sale by owner as long as I disclose that my wife's an agent (assuming she's involved) and not go through her brokerage?

My wife feels like that's bad juju, but at the end of the day it's our own property and we have the right to sell it privately until it's listed officially with the broker, don't we?  For all you brokers out there, even if it's legal, is that bad form?

Account Closed · Answer

BTW, I lived in Ballston Spa.  Yeah buddy.

Account Closed · Answer

@Ryan Vienneau

Just curious how the house is titled.  Is it in your name, both names or a business name that you own?

If she is technically the owner of the home and you sell the house outside the broker, it is my understanding that as long as she discloses her status you are fine. I would talk to someone on exactly how to capture that communication between her and the buyer.   Furthermore, I would not worry about the broker.  Id worry about the buyer trying to sue you down the road for something crazy like breach of fiduciary duties.  Just kidding.

Wayne Brooks · Answer

It's not a legal/regulation question, yes of course you can.  It would be a contractual issue with your wife's broker, as per her independent contractor agreement.  But, in this case she's not a legal owner anyway.  The disclosure doesn't seem to be required, but wouldn't hurt and your wife will have the form for this.

Ryan Vienneau · Answer

We're an LLC and I'm the sole owner, but she's obviously actively involved.  That was my thought too, as long as she discloses to the seller I don't see how the broker can have a hand in something they contributed zero resources to.

Dawn Brenengen · Answer

@Ryan Vienneau It's totally legal in my state, but you should check with your wife's broker to make sure there are no rules about selling your own property.  Is this a home that you and your wife own together?

Robert O'Keefe · Answer

You are a bold man, Ryan. Ever hear of happy wife/happy life? :)

You can sell it yourself but you probably have to disclose that your wife is a licensed real estate agent in your marketing and in the contract. Every state has different laws so you will have to do some Googling and check.

Good luck!