Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
I just spoke with my real estate attorney, she said the contract is fine that I currently have, however she said that it would probably be necessary to change this that I have in the contract. How do you go about advertising a property under contract, through craigslist, or through flat fee if the property doesn't actually belong to anyone just yet?
She said if I advertise a property I have under contract, I am acting as a broker, and Associate of Brokers might come after me, that you have to be licenced in order to do so, so she said there might be risk involved in advertising? What are your thoughts on this? How do you go about advertising a property if you aren't licenced to do so? I already have a few on my buyers list btw.
Btw she is making some tweaks for some clauses and stuff which is good, glad I could talk to an attorney first.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by Matt James:
Ok J.Scott so I have thought over this, and let me explain why you are wrong, and how a wholesaler is not acting as a broker.
Matt -
I'm not sure why you are arguing with me about this...I've agreed with you this entire thread about having the right to market a property you have under contract.
I disagreed with the fact that there is a major difference (from a legal standpoint) between selling a property with legal title and selling a property with equitable title -- something you asserted without support in a post above.
If you disagree with that statement, can you support it? (I'd provide support, but it's impossible to prove a negative :)
Btw, you seem to like to form your legal opinion based on what people in these forums have written. I would certainly recommend not listening to any legal opinions that you get from non-attorneys (and especially don't listen to me) without verifying with your own counsel...
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
15y
J Scott...
I would run the ability all the way to NAR... It's their guidelines which are adopted by the local MLS'. And frankly most board representatives may not know the difference between an owner and a seller. Thank goodness NAR does.
And just to clear the discussion up as to Realtors and the MLS. One doesn't have to be a Realtor to list property in the local MLS they only need to be a member. Naturally membership requires a real estate license and Broker affiliation. However it doesn't require having a Realtor status.
Also if one were to read the listing agreement I imagine there will be a space to describe any issue which may affect the title transfer from the seller to the buyer.
Appraiser · Gig Harbor, WA · Member since 2011 · 6 posts · 0 votes
15y
If you are worried about the legalities of advertising a property through a site like Craigslist then why advertise the exact property. Advertise a general property with the numbers of your deal. Make it clear you actually have this deal available. Essentially you are advertising for a buyer, not advertising the selling of the property. Once you have a buyer that likes the deal then of course you have the address and specific details of the property in your pocket ready to go.
I don't think advertising a property that you have equitable interest in is wrong. I just thought if you were wary about the situation, thinking about it in a different way would get around the potential legal situation.
Investor · Allentown, PA · Member since 2012 · 73 posts · 18 votes
14y
I thought I revive this because this is something that has been on my mind as well. Would it better to have on your Sale Agreement or Option, the right to market the property ? Or is it better leaving out and then just doing it per your equitable interest? I market on CRaigslist all the time and want to avoid problems. I currently use this in my contracts "Buyer has the right to market the property to immediate partners or buyers, prior to closing". Should I remove this?
Investor · South Jordan, UT · Member since 2017 · 16 posts · 8 votes
8y
To take it a step further, we would like to work with other wholesalers and close each others deals.
Network equals Net worth.
So we would get the wholesaler to sign an agreement that the property they send to us is either owned or under contract and is giving us permission to market the property for them. Then if we bring them an ultimate buyer who closes on the property, we split the wholesale fee 50/50 or we will mark up the property to collect our fee. We know many others who are currently doing this.
What are your thoughts from a legal perspective? Can another party assist in the marketing of the wholesale who is not licensed? (Craigs List, Facebook, Direct mail, Email etc.)