Can a wholesaler hire a realtor to list property on MLS

[Jay Ben]

Hello everyone, I was told you can hire a broker to list a property on the mls when having it under contract. I am wondering if there is a way to check if it’s allowed in other markets. I am in Los Angeles and I heard it’s not allowed in California but in Pensacola it’s apparently allowed? Anybody have more info on this? Thanks!

[Kerry Noble Jr]

Ive heard of it......I dont know how ethical it is per realtor associations 

[Trenton Miller]

As A wholesaler you have a contract to sell the property between you and the homeowner.  A Realtor should have a contract with the homeowner not a 3rd party.  If they do it, it's not a Realtor I woild work with. 

[Chris Seveney]

@Jay Ben

In the states I have bought or sold in the realtor can only list a property for the owner of the property

Since you don’t own it no they cannot list it.

[Kevin Sobilo]

@Jay Ben, it has definitely been done. I am an agent and I myself bought a wholesale deal that was on the MLS, but it was put there by a placement service not listed through an agent.

Once the wholesaler has it under contract they have what's called "equitable title". Obviously that isn't the same as actual ownership but if they can advertise it for sale in other places, why not the MLS as long as its done honestly.

FYI. I'm not even a big fan of wholesalers in large part because it often isn't done honestly. 

[Eliott Elias]

Only way you can do this is having a listing agreement with the seller at the price you and them contracted at and agree you get paid the rest. They usually are opposed to it   

[Jerryll Noorden]

WAIT stop.

  WTH?!

I am completely confused here. Before even answering this question...

The whole point of cash offers, including "wholesaling" is that it is an ALTERNATIVE to listing it.

So you as the wholesaler are going to list the property... 

So why are you as the wholesaler even there? Why doesn't the seller just list it DIRECTLY with the agent? What is the value you offer?

Does the seller know?

And NO, .. I mean I am not an agent and I am not an expert but there is NO WAY you can list a property you do NOT own on the MLS. That makes absolutely no sense.

So who is responsible, if "the seller" didn't disclose that there are termites or no operating smoke detectors?!

Mind is malfunctioning right now...

[Kwame Darko]

@Jerryll Noorden There is a new way that wholesalers have been listing properties on the mls through “novation agreements”. 

[Russell Brazil]

Quote from @Kevin Sobilo:

@Jay Ben, it has definitely been done. I am an agent and I myself bought a wholesale deal that was on the MLS, but it was put there by a placement service not listed through an agent.

Once the wholesaler has it under contract they have what's called "equitable title". Obviously that isn't the same as actual ownership but if they can advertise it for sale in other places, why not the MLS as long as its done honestly.

FYI. I'm not even a big fan of wholesalers in large part because it often isn't done honestly. 

I believe you are in the Bright MLS footprint. It is not allowed by Brights rules.

[Jerryll Noorden]

Quote from @Kwame Darko:

@Jerryll Noorden There is a new way that wholesalers have been listing properties on the mls through “novation agreements”. 

Dude it's because of this that wholesaling is doomed to be banned. 

They don't know when to quit!

[Pam Brown]

Hello

From Indiana---No, I would never list a property for someone who truly doesn't own it.

[Mark Pedroza]

Quote from @Jay Ben:

Hello everyone, I was told you can hire a broker to list a property on the mls when having it under contract. I am wondering if there is a way to check if it’s allowed in other markets. I am in Los Angeles and I heard it’s not allowed in California but in Pensacola it’s apparently allowed? Anybody have more info on this? Thanks!

 You're correct it's not allowed in CA..

[Bryan Blankenship]

Quote from @Jerryll Noorden:

Quote from @Kwame Darko:

@Jerryll Noorden There is a new way that wholesalers have been listing properties on the mls through “novation agreements”. 

Dude it's because of this that wholesaling is doomed to be banned. 

They don't know when to quit!

Plenty of wholesalers and realtors doing stupid stuff like this that will eventually lead to wholesaling being banned or HEAVILY regulated.

Regulations here in Ohio are already way tighter than they used to be.  The REAL players have to deal with new nonsense and new "players" in town that make everyone's business' harder to operate than usual.

Hey, maybe something like a recession that may or may not be coming will wipe out all these "players" 🙂

[Jerryll Noorden]

Quote from @Bryan Blankenship:

Quote from @Jerryll Noorden:

Quote from @Kwame Darko:

@Jerryll Noorden There is a new way that wholesalers have been listing properties on the mls through “novation agreements”. 

Dude it's because of this that wholesaling is doomed to be banned. 

They don't know when to quit!

Plenty of wholesalers and realtors doing stupid stuff like this that will eventually lead to wholesaling being banned or HEAVILY regulated.

Regulations here in Ohio are already way tighter than they used to be.  The REAL players have to deal with new nonsense and new "players" in town that make everyone's business' harder to operate than usual.

Hey, maybe something like a recession that may or may not be coming will wipe out all these "players" 🙂

I agree dude.

This is just retarded!

[Scott Allen]

I've heard that this method is whack

[Stephen Dispensa]

If the MLS has a contract and a section allowing you to market a sales agreement, sure. Literally not a single MLS in the country has such a thing. So to answer your question, no. Marketing a home for sale on the MLS when you don't actually own the home is considered fraud on both the wholesaler and the realtors part. Could result in not only the realtor losing their license and board membership, but possible criminal charges for both the realtor and the wholesaler.

There's probably people who have gotten away with this in the past, but all it takes is one deal going wrong and the whole thing blows up.