How to explain your LLC is a broker without blowing anonymity??

11 Replies

I wrote this in the CA-RPA Section 6:

1. Buyer has affiliation with licensed real estate brokers/agents in multiple states including California. 2. The buyer

is an investor and intends to utilize any and all investment opportunities for the subject property at their sole discretion in

order to maximize their return on investment and in doing so may resell the property at any time for any price at no

expense or delay to seller.

Then I add the Representative Capacity Signature Disclosure.

Thoughts?

Huh?  Not sure what the question is. The buyer is trying to be anonymous to who? “...affiliation with multiple brokers...” is this the “licensed principle” disclosure?  Members of an llc can be looked up in a few minutes.

I believe the CA realtor contract has a no assignment clause also.

@Wayne Brooks this LLC is formed in AZ, and its owner is an LLC in NM. The members of this NM LLC are not able to be looked up due to the privacy protection in NM. I am a manager for the AZ LLC, how do I specify that in the RPA? Since I am both the agent and the authorized signer for the buyer. I was looking for better language than what I wrote above. The paragraph above was pulled from a contract where the buyer was a member of the LLC, and didn’t mind who knew it.

@Sharron StJohn What I’ve done, in FL

1) "Disclosure: Buyer's agent has an ownership interest in, and is a member in, "Arizona LLC", the Buyer, as well as representing "Arizona LLC" as the buyer's agent in this transaction".

If the other members are not licensed CA agents/brokers, I don’t see any need in disclosing anything about them....that would be according to CA law.

2) this language just looks like disclosure you may flip the contract, which I’m not sure if that is your intent or not.

@Wayne Brooks Thanks for your feedback. I see what you're saying. I don't ever want to be seen as the buyer. My intention is to disclose that I am authorized to represent (and sign for) the buyer in this transaction, and that I am also the agent representing the buyer.

Sample: Buyer is being represented by Sharron St. John, who is an authorized manager of "Arizona LLC." Sharron St. John is also representing "Arizona LLC" as the selling agent in this transaction.

Better?

I include a line in the purchase offer:

Seller acknowledges that buyers agent is a member of XYZ LLC

In my opinion that discloses everything that needs to be disclosed. Adding verbiage like "They have the right to use property for whatever purpose they feel is in the best interest of..... looking to make a profit......" is all just adding language that someone can come back and bite you with in court.

Now if you are trying to add "assign-ability" in the same line that is different. 

DISCLAIMER: Not legal advice, just the opinions of some dolt on the internet, advice should not be taken for anymore than entertainment value, and that is questionable :)

@Sharron StJohn

"Sample: Buyer is being represented by Sharron St. John, who is an authorized manager of "Arizona LLC." Sharron St. John is also representing "Arizona LLC" as the selling agent in this transaction."

Is Sharron St John a member or a manager? If you are disclosing that she is a manager but she is really a member you are not really disclosing. In reality a manager may actually have alot more sway and pull than a member, if there are a bunch of blind partners. So I still like keeping it simple.

You absolutely should not try to hide that you are the buyer. You need to absolutely make it clear you are licensed, and are the buyer. This should be 100% clear. The NAR Code of Ethics is clear on this...and the Code of Ethics is the Law in many states. Even in states where the Code is not codified into law, disclosure of licensee status is law as far as I know in every state. Attempts to conceal this can lead to loss of license, suspension, fines and possible claims against your states guarantee fund if they have one.

@Sharron StJohn Did I read that you are also representing the Buyer?

It would important to have a Dual Agency "Informed Consent" signed in AZ. Be careful as a member of the LLC, listing agent and buyers agent, that water has more than a few snakes in it.