As a realtor do you assign contracts when wholesaling or you are only allowed to double close?

Question

Hi,

I have a deal under contract and I´m looking to assign it to an end buyer (wholesale). I am a realtor with Keller Williams and they are telling me that assigning a contract for a "fee" it´s not legal as I am a realtor, their advice is to do a double closing. Do you agree? are you realtors / investors assigning contracts when you wholesale or do you always do double closings?

Thanks for any advice,

Cristina.

Ellis San Jose · Answer

You are very welcome.  Your situation is very common when the clash of culture happens between Broker/Agents & Investors.  They are in the 6% commission box with lots of rules & typically not a lot of flexibility & creativity in problem solving.

Cristina Corredor · Answer

Thanks!

Cristina Corredor · Answer

@Ellis San Jose the seller is aware that I am a realtor but I´m representing myself as an investor. He is aware of my intention of selling the house for a higher amount and make a profit of it. There wont be a problem, is more with my broker as they don´t consider this higher amount to be legal, that´s why they recommend double closing.

Ellis San Jose · Answer

Hi Cristina,

I also have my real estate license with Keller Williams in California. Be very careful.  If you are acting as an agent on behalf of the seller, using an assignment vs. a listing agreement would be frowned upon because you are operating more like an investor with a conflict of interest. It may be more about ethics vs. illegality.

If you are positioning yourself as an investor assignments are very common place & not illegal in CA.  I prefer it over a double close which gets a bit more complicated to orchestrate.

Bryan L. · Answer

Real Estate law is local.  Typically by state.  I don't know why it would be illegal in TN, but don't know about AK.