Can I advertise properties on my website without a Licence?

17 Replies

I am new to the Lease Option strategy, and have heard conflicting views from different people on this subject; can I advertise a house that I have under contract for a Lease Option on my website without a Realtors licence?

I am not a Nevada broker.. I would simply call the state or write them and ask them .. the department of real estate is usually pretty helpful when you ask first .. instead of doing it wrong and then asking for forgiveness.

so you don't own it but your going to buy it then lease it out.. so you want to know if you can jump the process and get your lease buyer before you close ??? is that what your asking.

Thanks for the reply! Yes that is correct, so if i were to get a property under contract for a 2 year Lease Option, once the initial contract is signed would i be able to advertise for a buyer so that i can flip that Lease Option? I'm not sure if I can legally place advertisements on my website without a licence

I would check with attorney but it does appear to be brokering  real estate without a license 

Universal Citation: NV Rev Stat § 645.230 (2013)

1. It is unlawful for any person, limited-liability company, partnership, association or corporation to engage in the business of, act in the capacity of, advertise or assume to act as, a:

(a) Real estate broker, real estate broker-salesperson or real estate salesperson within the State of Nevada without first obtaining the appropriate license from the Real Estate Division as provided for in this chapter;https://law.justia.com/codes/nevada/2013/chapter-6...

Having it on your website almost puts a target on your back Some might say I am only selling a contract and not real estate but when the state comes down on you right or wrong it can be pretty expensive to defend  

Thank you Steven, I will speak with an attorney before doing anything. Much appreciated!

@Josh Matthews   that's a tricky one.. in essence your sub leasing.. I suspect if you actually moved in for a time and then found a need to sub lease you could do that.

but if its a scheme your working .. then yes it sure sounds like licensed activity as you need a license to lease or offer to lease property to others that you don't own.

that's the reason you have Property management companies and the reason they are licensed..

I would talk to the state its free and its the horses's mouth.. I have gotten in trouble in the past listening to attornies and their opinion of the rules.. if the state wants to hang you the could care less what your attorney said frankly.. and its a ton of dough to defend yourself..

Thanks Jay, I'll double check with the department of real estate and see what they say on the matter. Thanks again for the help

@Josh Matthews   if its a good enough deal just list it with an agent that specializes in leasing pay them the first months rent as a lease up fee and stay legal. that's a thought.. my daughter is an agent there in Vegas and she does a lot of leasing ... with the hopes ( and it does pan out) that those she helps lease a home will then come to her to buy one.. Plus she is very smart and pretty dog gone good at it.

I would be looking to list it with a Real Estate agent for sure, advertising on my website would just be a secondary way of marketing the home (if of course, it is legal to do so). Thanks for the heads up, would you mind me asking where I could contact her?

its not legal on BP to solicit business you have to PM me.   and I was for sure not trying to drive business to her was just saying you can choose any broker you wish that likes to lease properties..

I’m not a realitor but I have refrained from posting sfh deals I see on my website or social media. Unless I own the properties myself.

As far as I understand I can as a direct communication via email. Which is why I try to collect interested investors email.

It all goes back to people operating without a brokers license trying to disguise themselves as investors, wholesalers, or flippers.  A general rule of thumb is that unless you proceed or intend to proceed with an actual purchase of the property for your own account ( even in the name of an entity you own), then you are acting as a broker and need to be licensed.

But, one key here is INTENT, and that is subject to interpretation.  Another is the willingness of the local and state agencies to carry out enforcement, or just how far they are willing to go to enforce these laws, rules and regulations.

If you ask the Realtor Associations, anybody having anything to do with real estate (except buying or selling your own home) should be required to have a license.  if you ask rehabbers, flippers and wholesalers nobody should need to be licensed.  If you ask politicians, they'll get back to you after they've calculated which group contributes more to their campaigns and which stance would cost them the least votes.  

Here's a solid recommendation, forget trying to get everyone's opinion on a forum, hire an attorney who specializes in real property law in your area, and ask him his learned opinions of specific questions.

Hi Don,

Can you recommend a good real estate attorney in The Woodlands area?

Thanks!

Originally posted by @Don Konipol :

It all goes back to people operating without a brokers license trying to disguise themselves as investors, wholesalers, or flippers.  A general rule of thumb is that unless you proceed or intend to proceed with an actual purchase of the property for your own account ( even in the name of an entity you own), then you are acting as a broker and need to be licensed.

But, one key here is INTENT, and that is subject to interpretation.  Another is the willingness of the local and state agencies to carry out enforcement, or just how far they are willing to go to enforce these laws, rules and regulations.

If you ask the Realtor Associations, anybody having anything to do with real estate (except buying or selling your own home) should be required to have a license.  if you ask rehabbers, flippers and wholesalers nobody should need to be licensed.  If you ask politicians, they'll get back to you after they've calculated which group contributes more to their campaigns and which stance would cost them the least votes.  

Don,, in the For whatever its worth file.

I made one post on BP about brokering a loan in NV.. I was actually looking for a broker to run the paper work.. someone saw this on BP or the state is trolling this site.. I got a Cease and desist letter from the state within 10 days and had to sign a notarized statement that I had never done a loan in NV as i am not licensed there.. being NMLS licensed personally I am easy to track of course.

My thought is NV maybe one of those states that is aggressive with enforcing the laws of the land.. at least as it relates to the mortgage industry.. and of course you see many scammers with a NV address.. all anyone has to do is file one complaint and those folks are shut down.

Originally posted by @Josh Matthews :

I am new to the Lease Option strategy, and have heard conflicting views from different people on this subject; can I advertise a house that I have under contract for a Lease Option on my website without a Realtors licence?

Check with your department of commerce - in Ohio if you are the physical owner of the property, you can advertise and sell it, you cannot represent others without a license in a sale or management role without a license in-fact without a broker license. 

Originally posted by @Steven Gesis :
Originally posted by @Josh Matthews:

I am new to the Lease Option strategy, and have heard conflicting views from different people on this subject; can I advertise a house that I have under contract for a Lease Option on my website without a Realtors licence?

Check with your department of commerce - in Ohio if you are the physical owner of the property, you can advertise and sell it, you cannot represent others without a license in a sale or management role without a license in-fact without a broker license. 

well you just shut down all the wholesalers that have no licenses in OHIO... LOL.... its the same in every state literally.. it just depends on what states want to enforce the laws.. you read the statutes and they all read verbatim the same.

only in I think Maryland does one NOT need a licesne to PM  for others.

It sounds to me like the OP wants to assign their contract, not sublet it. Assuming I'm understanding his reference to "flipping". In that case property management has nothing to do with it. The only question to answer is whether or not he can sell a contract he is a principal party to, without being licensed. If he can then advertising that contract for sale wherever he wants shouldn't be a problem.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here