State Real Estate Commission issues? Contract Issues

3 Replies

Hey BPers, after looking into this particular service(wholesaling) I ran into two issues early on and I was wondering if any one had any experience with this issue and/or advice about it:

1. When Wholesaling without a Realtors/Brokers License, has anyone ran into issues with their States Real Estate Commission?

2. For your contracts, do you use custom contracts, or your states default contract?

Any advice related to both of these items would be greatly appreciated.

If it helps any, I am located in Colorado, and hope to do business here.

@Aaron McKeehan

1. Shouldn't be a problem as you're only selling property you have an interest in.

2. The form contract would be a good place to start, but I'd think there would be many things you'd want to change on both the buying and selling side. You might want to get it drafted by an attorney so that you know your bases are covered.

Good luck!

Common practice here is that people use the standard RE contract and modify the terms by an addendum. They cut off the bottom or scratch out the form number and Board of Realtor's logo and information as if they aren't stealing the contract with copy rights, but the Board doesn't bark about it, not sure that would be an issue if you were trying to enforce your contract. It's better to have your attorney draft your agreement, over the years those agreements can make you tons of money and may cost you a couple dollars each time you use them. It's an investment in your business. :)

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Originally posted by @Bill Gulley :
Common practice here is that people use the standard RE contract and modify the terms by an addendum. They cut off the bottom or scratch out the form number and Board of Realtor's logo and information as if they aren't stealing the contract with copy rights, but the Board doesn't bark about it, not sure that would be an issue if you were trying to enforce your contract. It's better to have your attorney draft your agreement, over the years those agreements can make you tons of money and may cost you a couple dollars each time you use them. It's an investment in your business. :)

I'd like to add an addendum to Bill's comment here. I'd recommend checking out RocketLawyer through BP Recommends as they have standard forms for this type of thing, where you can add addendums and amendments, and then have it reviewed and given the okay by a professional attorney.