Real Estate Licensees Disclosure When Offering To Buy

2 Replies

Let me start out by saying that I am not trying to start a debate about the pros and cons of having a real estate license or whether the discussed license disclosure requirement is right or wrong. Also turning in our license is not an option either. That said, I am seeking information from other licensed brokers and agents on what you are doing to disclose that you have a real estate license when soliciting to buy investment property with direct mail, squeeze pages, social media, etc.

It is license renewal time in our State and continuing education classes are required. Broker disclosure as a principal in a transaction has come up several times in our risk management classes. The general consensus has been that a real estate licensee should disclose that they have a license to the opposite party in the transaction to meet state license law. Earlier is preferred to later in the transaction. However, it seems now that the NAR and some State Board's are expanding the requirement to include that disclosure also be made in any advertising, direct mail, squeeze pages, social media, etc.. even though the efforts are directed at buying, not listing property.

I have never had an issue with disclosing that I am a broker. It has been a non-issue in 100% of the transactions in which I have purchased property. It is on my business card and I have a disclaimer in my offer to purchase that states that I and my company are both "real estate licensees". The reason I am making the post is that we are considering using some direct mail and the internet to generate leads to buy property. Again, I don't have a problem disclosing the fact that we are licensed, but I want to keep it concise and simple, but still be in compliance I hope some of the other licensee/investors on BP will share what you are doing in the area of license disclosure when offering to purchase investment property especially on direct mail, the internet, and social media.

I am not licensed, but here's my two cents. If I were selling to an investor, knowing that they were licensed in the state would be a plus to me. I would know that they (hopefully) understand all the rules and regulations and would have more confidence that were not going to involve me in something shady by accident (or design!) So my instinct would be to play that up just a bit in your marketing - exactly how you say it would be dependent on the tone of your marketing piece, but basically use it to emphasize "hey! we know what we're doing" 

Medium team zen logo vJean Bolger, 33 Zen Lane | http://www.solidrealestateadvice.com

Your local state law will prevail, but in TN all that I do is to put the phrase "buyer/agent" in my advertising.  Something like this:

I BUY HOUSES

Call me at 555-1234

(buyer/agent)

Then, at the time of an offer there is a standard TAR form that we fill out.  I really don't know why people fret over this so much, because it's really not that difficult.  Also, if a seller thinks that you took advantage of them somehow buy your superior knowledge or whatever, then just offer to sell the house back to them.  My guess is that they will shut up. 

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