Selling my own rental property as a real estate agent?

Question

Hey everyone--

I am barely getting started with my real estate career and I am wondering how to handle selling my rental property! The tenant has been living there for about a year, and will be buying next month. Would I have to involve my broker if I am not putting the property in the MLS or doing any promoting; I would simply be selling it to the tenant that is already living there. Or how would I handle this process?

Any advice will be helpful!

Thanks!

Russell Brazil · Answer

Yes....once you become licensed, all of your real estate activities are subject to the supervision of your broker and your states real estate commission/department of licensure. Notify your broker, and your independent contractor agreement with your broker will dictate how the sale is handled.

Marc Winter · Answer

Congratulations on the transaction.

I'd disclose to your broker of record what you are doing, but there should be no commission, transaction fee, or other payment to your broker if it's not on the MLS.

Rinse and repeat!

Marian Huish · Answer

My understanding of your question @Sandra Becker Is that your current tenant will be buying the property. In this case, you should be able to sell directly without listing in the MLS and soliciting buyers, and issuing Tenant rights notices (if applicable in your state) etc which is a huge benefit in DC assuming that the tenant is paying market price or at least a price that is acceptable to you.

As suggested above, you should consult with your broker and be sure you’re following their rules on selling your own property. You can either sell it ‘for sale by owner’ with all proper disclosures, or you can sell it under your broker name with giving the broker any split that may be due. I know some brokers allow the agent to keep 100% on personal deals and some brokers prohibit them from listing their own properties altogether. As a professional. You should know what your broker requires. Good luck!

Charlie Cameron · Answer

@Sandra Becker I think the consensus is clear, you should consult your ICA, and then your broker.

Of course, this is kind of like wholesaling as an agent. There are grey areas. But the smartest thing you can do is chat with your broker to keep everything on good terms. Smart brokers will let their agents keep 100% commission on personal transactions because it is a good retention tool which is a win win. If that's not the answer... well... then it's time to ask a different question!

Bruce Lynn · Answer

@Sandra Becker Yes, you will want to involve your broker....so that you follow disclosure laws and also are covered by your E&O insurance. Also my suggest is put your money where your mouth is.....do you encourage all your clients to put their homes in the MLS or do you encourage them to all sell off market? Think about it. Don't you want to market your home to the widest market and pool of buyers?

Sandra Becker · Answer

Thank you so much!

Selling my own rental property as a real estate agent?

Selling my own rental property as a real estate agent?

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