Do I need a brokers licence to wholesale in NY?

Question

I know there may be laws pertaining to wholesaling real-estate. I just want to be safe. Thanks fellow BPers!

Mario Cruz · Answer

thanks a lot Account Closed

Account Closed · Answer

As long as you are not "promising" to find a buyer for a seller. Use proper contract, find an escrow/title or attorney who specializes in this field. Technically, wholesaling is like "brokering" so a lot of states (not sure on NY, as I stated check with an attorney or ask at some REI club to other NY wholesalers) require wholesaling to have a broker license.

Check this site as well.

http://www.biggerpockets.com/renewsblog/2015/03/27...

I also work with a lot of wholesalers and can ask around. Feel free to ask if you want specific answers, I'll try to respond as soon as I can.

Mark Elliott · Answer

not sure in NY if you need a license to wholesale. if not right now, it will happen soon. one thing about NY, if they can find a way to tax it, they will. and making you get a license would allow them to tax it. right now, i think you can wholesale without the license, just use the proper contracts and do not promise to find a buyer. that makes you an agent. get the house under contract for yourself and make sure it has a clause allowing you to sell the contract to another. no promises, just a clause that allows you to do it. trust me, if the state of new york requires a wholesalers license to do that, they will let you know.