I have a property under contract in Clearwater, FL. In my contract it states that the seller allows the buyer to market the property on the MLS, in periodicals, Newspaper, and with a for sale sign in the yard.
My question is can I list the property with a realtor considering I have equitable interest in the property and the owners permission? I have a realtor that will list it but I don't want her to break any rules.
There was recently a thread on BP where a person with an assignable contract put a "FOR SALE" sign in the yard and was contacted by FREC and warned they could face felony charges if they did not take it down. In Florida, you cannot represent the owner of a property without a license and listing agreement. The way to avoid problems is to close on the property and then list it for sale. I suspect your agent friend might be too anxious for business. At this point, you have a right to purchase the property under the terms of the contract. You are not the property owner. You are trying to sell the property of another which means you are representing someone else. Illegal!
Here is part of the thread:
I had a "For Sale" sign in the front yard of a house that I have a contract to purchase on with the seller. I got a call from the Florida Department of Real Estate informing me that since I do not hold a real estate license and because I am not the owner of the house I cannot market the property for sale.
I explained that I have an equitable interest in the property in the form of a contract for sale and purchase however they maintained I must remove the sign or face felony charges. Has this ever happened to anyone else?
Tyler Sheff, Sheff Investments, LLC
E-Mail: [email protected]
@Daniel Paloscio I think your agent friend may be inexperienced and uninformed. The local MLS likely won't allow it in the MLS, by standard rules, without it being listed--with the Owner signing a direct listing agreement with the listing broker, not someone with "equitable interest", a term that only the gurus/wholesale promoters like to throw around. Let us know if this agent's Broker signs off on it.
Thanks for the advice. I'll have her talk to my agents broker and see what my options are. I'm paying a point per month in interest on the money, of which I'm borrowing 100% of purchase price, so if I can market one month prior to buying I can save $1500.
I see your point with the local MLS. It may be against regulations to list before I close. I'll have to dig deeper into it. Equitable interest is just used to describe the buyers position in a contract. It makes it easier to describe than saying "my buying interest in said property". I use it and I typically rehab.
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It will depend on your local and state laws, and also on the local rules of your local MLS. The Realtor's broker would probably also have to approve it.
But, here's a way to get around any of those rules - with no money required (maybe). Why not go ahead and get the deed via a sub2 sale? Or, maybe even a land-contract. I have listed property before where the "owner" had a land-contract, but not the deed.
Thanks.. I did that on the others but for some reason it untagged them.
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