Wholesaling and the equitable interest theory

[Jay Hinrichs]

I just completed my CE for my mortgage bankers license here in Oregon today.

what I found interesting and wanted to share is there was a module on license requirements as it relates to selling real estate.

State of Oregon has now included Equitable interest in their definition of selling real estate.

the laws we know are virtually the same in the country.. and only some state enforce this.

But Oregon is the first one I have seen that has included equitable interest.

It goes on to say any marketing of equitable interest in any manner requires a license.. IE website craigslist  e mail blast etc.

Further it went on in great detail about dealing with those properties in foreclosure.. this new term

for a buyer is  Equity conveyance buyer and there are strict rules with regard to this activity.

And having personal knowledge about how Oregon is pretty intense on enforecing these business and professions codes .. I see a lot of unlicensed wholesalers are going to have to deal with this.

IE  transaction fund... Close on the property  or get licensed

[Russell Brazil]

@Jay Hinrichs on the one hand getting licensed seems like the easy work around. But Im curious Jay as to your thoughts on this.....I am of the belief that a licensed agent should not be engaging in the act of wholesaling using assignable contracts because I feel it is in essence a Net Listing.  Property under contract for $200k, assign it for $210k, make the Net difference of $10k. So to me, that seems like a huge issue for a licensed agent. 

My broker is on the commission in Maryland, and I keep meaning to ask him the commissions view on it when I run into him, but I only see him a couple times a year. (Big company)