Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
We run a direct mail campaign. My business partner is in the process of getting his license when we send out our letters can we do so in my name? So we don't have to add the agent disclosure to our marketing? We also plan on just adding a "one or more members of the buyer's company may or may not hold an active Realtor and or brokerage license. However no commissions are due on the purchase price." Is that about right?
Investor · Santa Ynez, CA · Member since 2008 · 375 posts · 175 votes
11y
Hi Ryan,
I am sort of in that situation, but I have my license now. My take, and I'd love to hear some Broker's opinions, is that even if you are sending out marking in your name, he's still your partner on the transaction so disclosure is required. At least in CA, they seem to be tightening the rules up even more with the latest round of laws that just kicked in.
As far as what disclosure to put on the card, I can't answer that since I know nothing of what MO might have in place. His broker should be able to help or contact the MAR legal line, which is what I ended up doing (except CAR of course)
We run a direct mail campaign. My business partner is in the process of getting his license when we send out our letters can we do so in my name? So we don't have to add the agent disclosure to our marketing? We also plan on just adding a "one or more members of the buyer's company may or may not hold an active Realtor and or brokerage license. However no commissions are due on the purchase price." Is that about right?
As your partner goes through that process (school and test) he will learn that his company will be a RE company and everyone in a RE company must have a license. Disclosure is to the license, on all advertising you need to show his name as a licensee.
Buying a property isn't a concern about commissions so long as such are not paid to him. Selling is a different matter, ANY profits split with a non-licensee is the splitting of proceeds, compensation. Most likely his broker who allows him to operate as an agent won't allow it.
Solution? You get your license!
I'd suggest you or he gets a broker's license, then you can have your own RE company.
MO is very strict on licensing.
The proper disclosure is: Under Missouri RS xxx.xxx, the buyer/seller, Max Smith is a real estate licensee, or Max Smith, Owner/Agent, Owner/Broker.
Don't dream up your own disclosures! Follow the statute for printed matters.
Business card will show the name of the company, the person's name and the license status, such as: Agent, Broker-Agent, Managing Broker, Broker-Owner. The phone number of the company and any individual numbers. The company phone number needs to be a toll-free number, answered during normal business hours. You will need a business address of the company.
Your company office must post hours opened, by-appointment is fine. The office must have a sign and you need to post the HUD equal housing sign.
So, there are specific requirements for an independent office/company.
An agent/broker who has a company that is under another broker can use the sign, number, etc. of that brokerage.
You may have additional requirements adopted under your Board of Realtors affiliation and MLS requirements.
There are ways around doing business as an agent with an owner but that will need to be passed by the broker holding the agent's license. An independent broker will need to comply. Yes, it's a PITA! :)