I had a quick question. I'm trying to break into wholesaling here in AZ, and I also have my real estate license. I have some questions I'd like to clear up about disclosing my agent status.
Am I required to make this disclosure on any mail that I'm sending out? I'm aware that I would have to disclose it in contracts, but if I'm just sending out "I'm interested in buying your house" or "Here's a house I have under contract" kind of mail, am I required to make some sort of statement in my letters? Same with cold-calling potential sellers, do I have to disclose this during the call?
Similarly, any other situations I didn't mention that my status as an agent might come into play, please let me know.
I'm not an agent, but you should be able to ask your broker that question.
As an investor and Realtor, I agree with Josh...you need to reach out to your broker.
Most brokers require you to have any advertising or promotions approved by the broker before you put it out for public consumption.
Of course, you must also comply with both the Commissioner's Rules & the Code of Ethics. For example, Article 12 of the REALTOR Code of Ethics says that: “REALTORS shall be careful at all times to present a true picture in their advertising and representations to the public.”
Have to be careful with advertising and it's best to work with your broker on these matters.
AHH WHAT?!! I am totally surprised by the comments on this, especially by licensed agent, because with this, there IS an absolute answer when it comes to marketing materials soliciting real estate transactions by agents.
If you are a licensed real estate agent, you not only have the obligation to disclose, but you also are required to display your broker's name/logo on EVERYTHING you do in regards to marketing.
I have noticed that so many of these "I'll buy your house for cash" marketing pieces have NO brokerage info listed on their mailers. This is a direct violation with pretty severe consequences.
I suppose that if you were the principal, and mailing a letter to a specific property owner requesting their interest in selling, you may not have to list your brokerage firm or include your logo. However, these mass mailings that have the intent to provide you real estate leads require the display of your broker's logo and/or info. Remember, you practice real estate at the privilege of your broker. Therefore, the Broker has to be present on everything you do.
Regarding the disclosure that you are an agent.....there is more of a gray area here as it relates to timing of the disclosure. As a rule of thumb, I would disclose your agent status as soon as it feels appropriate, but preferably before contract time so that there is no feeling of dishonesty. Make sure that you make the disclosure in writing as part of the contract so that you have a documented disclosure (and it's required).
My question to you is why WOULDN'T you want to tell people you hold a real estate license? You have the ability to competently complete the transaction with them, and provide the resources and vendors to get the transaction closed smoothly. In my experience, people appreciate the heads up sooner, rather than later. In the beginning, it doesn't seem like a big deal. However, the later you delay the disclosure, the more deceitful it feels to the other party.