When buying property for yourself in another state

Question

Curious if there is specific disclosure verbiage that you need to use when buying something in another state, for yourself? Do you just need to put something like this on top or bottom of the P&S agreement?

"Buyer (checkbox) Seller (Checkbox) is a licensed real estate agent contracting in their own interest."

Or

"BUYER (checkbox) SELLER (Checkbox) IS THE PRINCIPLE IN THIS TRANSACTION AND IS A LICENSED REAL ESTATE AGENT. BUYER DOES NOT REPRESENT ANYONE IN THIS TRANSACTION BUT THEMSELVES."

Would either one be enough? Would I need to do more than this? I think either would work. I tried calling multiple agencies (NAR, local MLSs state agencies), they all just pawned me off to another department, nobody had an answer.

Thanks

Chris DeSisto · Answer

@Ronald Rohde

For sure, no reason not, honestly.

Joe Funari · Answer

@Chris DeSisto best advise I received from another investor is disclose down your underpants. So your on the right track. Here in Texas paragraph 4 of the 1to4 resale residential contract is reserved for license holders disclosures. So if you buy here in Texas I would recommend you place in that paragraph your a license holder from whatever state you hold your license.

Ronald Rohde · Answer

So if it doubt, disclose as an additional protection. Err on the side of caution.

Chris DeSisto · Answer

@Ronald Rohde

The in-state requirement is "Buyer (Checkbox) Seller Checkbox) is a South Carolina real estate licensee"

That is what is on the state promulgated purchase and sales agreement. As far as other states, I looked at their P&S and didn't see anything specific (that I saw), some anyway, Texas does. Also, I even called NAR (in Chicago) and the local agencies in the state i was thinking of buying in and nobody had an answer. They all just pawned me off to different departments or agencies.. kind ridiculous if you ask me. So, what can I do but disclose that I am licensed? Even in NARs ethics stuff, 4-1 says you need to disclose but doesn't give any exact verbiage. This comes right off of their website.

2019 Code of Ethics & Standards of Practice

"REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00) [listen]

• Standard of Practice 4-1

For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)"

Ronald Rohde · Answer

You should comply with both your own state licensure requirements and the state you are purchasing in. It won't kill your deal, but could save a huge cost down the road if Buyer changes his mind later.

Chris DeSisto · Answer

@Joe Funari

Ok, so just adding in the state to the first option should be clear enough. Not trying to get complicated, just need it in writing, and I can tell them verbally when I talk to them.

Mike Cumbie · Answer

I just usually use an addenda. Less is more.

"Seller acknowledges that they buyer is a Licensed Real estate agent in NY" and have them sign.

Good Luck!

Chris DeSisto · Answer

Yeah, I was just trying to make sure there isn't some hard fast rule or what needs to be said.

When buying property for yourself in another state

When buying property for yourself in another state

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