Land Marketing For Fee?

Question

Hi all, I’ve read through several posts but keep seeing conflicting answers on this. Was hoping to get some clarification- to start, I AM NOT a licensed real estate agent in Alabama. I am however connected with several investors who frequently ask if I know of any properties for sale. I have an out-of-state landowner who is wanting to sell a large parcel and has asked me to help market the property for them (put sign up, handle phone screens, show people the land) instead of listing it with an agent. Is it legal for me to:

#1 market the property for them through my sole proprietorship?
#2 collect a fee for my services of connecting seller to buyer?

I’m not sure if this qualifies as “brokering” since I’m not handling anything on the legal side. Any help is greatly appreciated!

#1 market the property for them through my sole proprietorship?#2 collect a fee for my services of connecting seller to buyer?

I’m not sure if this qualifies as “brokering” since I’m not handling anything on the legal side. Any help is greatly appreciated!

Cornelius Garland · Answer

@Dalton Cole Bodine This is essentially wholesaling. You'd just get the property under contract and then market the property to your buyers. As long as you aren't representing yourself as a broker then you will be fine. There are only a few states that currently have laws regulating wholesaling and Alabama isn't one of them.

Scott Morris · Answer

I'm almost certain this would count as practicing real estate especially if your pay is tied to the deal closing.  If he was just paying you to market the property and screen people, then he (or someone else) handled everything else, maybe.  Anytime pay is tied to a closing, red flag.