Real estate license?

8 Replies

Hello everyone. Here's a question for anyone that has a state that makes it illegal to advertise properties without owning them first. I am in Flordia and talked to a lawyer who said you cant not advertises properties at all even in private becusse Florida has it that you'll need a real estate license to do so since you do not own the property and only have it under contract. So, now I feel like I am stuck in getting my real estate licenses. Wondering what people around me are doing and wondering besides being able to Adverties the homes. What other benefits could I see by getting my license. Thanks in advance.

Hello @Justin Stetson,

It seems like there may be some slight miscommunication or misunderstanding about what can and can't be done. I also feel like this question is actually two parts.

1. Should you get your RE license? I personally have mine and see benefit in doing so. However, that license will require you to adhere to a different set of rules as an investor. Failure to do so could result in harsh penalties by the state licensing board. Find out all the pros and cons that you can and compare it to what you are trying to do and your timeline.

2. Can you advertise a property you don't own? Depends! Do you have equitable title in the form of a contract? Does FL allow you to advertise if you do? Are you trying to sell this for another party? If so, does your agreement give you explicit authority to advertise?  

One thing you can typically be sure of, if all parties agree to a circumstance in writing and that circumstance is not illegal, then you are probably covered.

Best of luck!

Promotion
Obie Insurance
Coverage for your rental
Get a quote for your rental property in 2 minutes or less.
Save on landlord insurance. A transparent, simple, and affordable way to protect your investment.
Start Saving

Hello @Nicole Heasley

Check with your state licensing board, they will have a section for RE. Some of the rules/regulations and code can be dreary reading though. Best option would be to speak with an ethical investor/agent in your state. Someone who knows and practices the requirements necessary.

Best of luck!

@Justin Stetson  Look up @John Thedford.  He's a licensed real estate agent and lender in FL.  He's written multiple posts here on BP that support what your attorney has told you.  He cites the chapter and verse of FL law.

Do not take advice from those who have not studied FL law.  These things vary by state - but in almost every state, if you are marketing a property that you don't already own, that's a license-required activity.  It certainly is in MA where I practice.

You'll find all manner of BP posters, YouTube videos and guru seminars that tell you it's legal - but they're not the ones who are going to get sued when someone finds out that you screwed their grandma out of $50,000 in equity.  And they're not the ones who the state will land on with hefty fines and possibly prosecution.

If you get licensed, the next problem you'll run into is that wholesaling is indistinguishable from a "net listing".  That's where a seller says "sell it for $XXX,XXX and you keep anything above that."  That's illegal in most states.

The bottom line is that real estate laws are in place to protect the public from unethical people and they're there for a good reason.

Originally posted by @Justin Stetson:

Hello everyone. Here's a question for anyone that has a state that makes it illegal to advertise properties without owning them first. I am in Flordia and talked to a lawyer who said you cant not advertises properties at all even in private becusse Florida has it that you'll need a real estate license to do so since you do not own the property and only have it under contract. So, now I feel like I am stuck in getting my real estate licenses. Wondering what people around me are doing and wondering besides being able to Adverties the homes. What other benefits could I see by getting my license. Thanks in advance.

See 475.43. Yes you cannot advertise properties you do not own unless you are licensed. Being licensed is a plus though. Buy the deals and list the rest.  

Originally posted by @Charlie MacPherson:

@Justin Stetson  Look up @John Thedford.  He's a licensed real estate agent and lender in FL.  He's written multiple posts here on BP that support what your attorney has told you.  He cites the chapter and verse of FL law.

Do not take advice from those who have not studied FL law.  These things vary by state - but in almost every state, if you are marketing a property that you don't already own, that's a license-required activity.  It certainly is in MA where I practice.

You'll find all manner of BP posters, YouTube videos and guru seminars that tell you it's legal - but they're not the ones who are going to get sued when someone finds out that you screwed their grandma out of $50,000 in equity.  And they're not the ones who the state will land on with hefty fines and possibly prosecution.

If you get licensed, the next problem you'll run into is that wholesaling is indistinguishable from a "net listing".  That's where a seller says "sell it for $XXX,XXX and you keep anything above that."  That's illegal in most states.

The bottom line is that real estate laws are in place to protect the public from unethical people and they're there for a good reason.

So, as long as i do not do a net list i should be fine? I am looking into John Thedford forums to see what he has said about wholesaling in the area. I am also contacting the broker that will be hiring me to activate my Real estate license (Start taking these courses Friday) to shed some light on this as well. Thank you for replying and helping me out on all of this. 

Originally posted by @Justin Stetson:

Hello everyone. Here's a question for anyone that has a state that makes it illegal to advertise properties without owning them first. I am in Flordia and talked to a lawyer who said you cant not advertises properties at all even in private becusse Florida has it that you'll need a real estate license to do so since you do not own the property and only have it under contract. So, now I feel like I am stuck in getting my real estate licenses. Wondering what people around me are doing and wondering besides being able to Adverties the homes. What other benefits could I see by getting my license. Thanks in advance.

 Sounds like you are trying to broker real estate. A license is required to broker real estate in the USA. Get your license.

Originally posted by @Micah Redden:

Hello @Justin Stetson,

It seems like there may be some slight miscommunication or misunderstanding about what can and can't be done. I also feel like this question is actually two parts.

1. Should you get your RE license? I personally have mine and see benefit in doing so. However, that license will require you to adhere to a different set of rules as an investor. Failure to do so could result in harsh penalties by the state licensing board. Find out all the pros and cons that you can and compare it to what you are trying to do and your timeline.

2. Can you advertise a property you don't own? Depends! Do you have equitable title in the form of a contract? Does FL allow you to advertise if you do? Are you trying to sell this for another party? If so, does your agreement give you explicit authority to advertise?  

One thing you can typically be sure of, if all parties agree to a circumstance in writing and that circumstance is not illegal, then you are probably covered.

Best of luck!

contrary to guru speak and those on BP that regurgitate equitable interest  a small EM deposit on a contract is NOT equitable interest.. 

All the big wholesalers that feed deals to my borrowers in Orlando a few years back were licensed and they were licensed for a reason..