All Forum Posts by: Duane Alexander

Thank you especially for #'s 5 and 6. Yeah, everyone has the anecdotal "person I know who wholesales and makes $100k/mo", yet they fail to realize the marketing $$$'s that person incurred to get to that point (assuming its even true). Its certainly not the cost of 2 rolls of stamps and some notebook paper.

Just like Carvana and the like has interrupted the craigslist bottom-dweller catfish trying to lowball car sellers, and sometimes getting away with it, like you said ibuyers will be the end of wholesaling except for the most technologically inept homeowners, whom coincidentally need the most consumer protections real estate licensing provides.

How is this about consumer protection and not NAR and brokerages trying to keep control of an industry they fear is changing? NAR sees Zillow, offerpad, etc. jumping into their business utilizing technology and is scared they will end up like the Taxi commission when Uber took over. That's all this is about. Consumer protection? Please. The vast majority of the people I work with specifically DO NOT WANT TO WORK WITH A REALTOR because of a whole host of reasons. Either they don't want to pay commission, or they have an issue that makes selling their property off market more desirable, for example having a tenant that won't allow access, having a hoarder house they don't want publically listed because they are embarrassed, wanting a discrete fast cash sell, etc. I ask every single seller I talk to why don't they just list their property with a realtor and they all have some reason.

So if a consumer doesn’t want to work with realtor, how are you protecting anything but your pockets by trying to create laws  to force them to?

It's 2021. Technology has made it easier for people to find buyers for their homes. A lot of people are realizing they don't need a realtor to oversee a real estate transaction for 6% and are pursuing other options whether that be FSBO, using ibuyers, selling directly to an investor etc. NAR undoubtedly sees the writing on the wall and are trying to hold on by spreading all of this FUD about wholesalers being the worst people on the planet.

 George law says you do playa.

#1: What constitutes a Broker under Georgia law?
The Official Code of Georgia, Section 43-40-1(2)(A) defines a “Broker” as any person, who, “for a fee, commission or any other valuable consideration, or with the expectation of receiving the same from another . . . assists in procuring prospects for the listing, sale, purchase, renting, lease, or option for any real estate . . .”[4]

#2: What activities require a Broker license?
Under Georgia law, any person who (i) intends or is promised to receive “any valuable consideration” and (ii) offers, agrees or actually negotiates or attempts to negotiate, or assists in procuring prospects, for the listing, sale, purchase, exchange, renting, lease, or option for any real estate or improvements thereon, must be a licensed Broker. The Georgia Code also lists a number of other activities that can only be performed by a licensed Broker if offered or performed with the intent of or upon the promise of receiving commission.[5]

#3: What penalties/fines could an individual face by acting as a Broker without a license?
An individual who acts as a Broker without a license from the State of Georgia can be charged with a misdemeanor.[6] The Commission can impose a fine not to exceed $1,000 for each violation of the statute, with each day that a person practices in violation of Georgia law constituting a separate violation.[7] Other violations include: (a) acting for more than one party in a real estate transaction, (b) making any substantial misrepresentation, or (c) attempting to perform any act authorized by law to be performed only by a Broker. The Commission can also issue a cease and desist order against the violator.[8]

The Attorney General also has the right to bring an action to enjoin such illegal conduct in the Superior Court.[9]

#4: What rights would an individual forfeit by acting as a Broker without a license?
Under Section 43-40-24 of the Georgia Code, anyone who performs any of the acts of a licensed “Broker” listed in Chapter 43 of the statute without a license is prohibited from bringing an action in a court of law to collect compensation for the services rendered.[10] In Amend v. 485 Properties, LLC, the 11th Circuit Court of Appeals held that “any person who negotiates or assists in procuring prospects for renting or leasing for any real estate or holds himself out as a referral agent for doing so, must obtain a license with the Georgia Real Estate Commission . . . [a] person cannot maintain an action for compensation for services without alleging and proving ‘that he was a licensed broker in Georgia at the time the alleged cause of action arose.’”[11]

Similarly, an unlicensed individual acting as a licensed Broker would not have any rights to lien the subject property under the Broker’s lien law. This is relevant with respect to an individual’s ability to enforce the payment of the referral fee if a dispute arises.

#5: Who can be a Broker in Georgia?
Under Section 43-40-8(c) of the Georgia Code, a person can be a licensed Broker if they “(1) have attained the age of 21 years; (2) are a resident of the state of Georgia; (3) are a high school graduate or the holder of an equivalency; and have complied fully with the requirements of subsection (b) of Code Section 43-40-15 regarding any criminal convictions; (4) have maintained a license in active status for at least three of the five years immediately preceding the filing of an application to become a broker; (5) furnish evidence of completion of 60 instructional hours in a broker’s course of study approved by the commission; and (6) stand and pass a real estate examination administered by or approved by the commission covering generally the matters confronting real estate brokers after completing the requirements of paragraph (5) of this subsection and after maintaining a license in active status for at least three of the five years immediately preceding such examination.”[12]

#6: What is the intended purpose of the Georgia laws regarding Brokers?
Like many other professions that require a license to practice, Georgia implemented the laws surrounding Broker licensure to prevent people from falling victim to harmful business practices.[13] The Georgia Real Estate Commission (“the Commission”) was created by the state legislature as a way of monitoring the brokers and enforcing licensure requirements.[14] In 1929, the Georgia Supreme Court discussed the reasoning behind the laws and creation of the Commission in the case Padgett v. Silver Lake Park Corp.[15] The Court explained that:

“the legislature intended . . . to create a Georgia real estate commission which would investigate each and every person applying for a license as a corporation or individual as a real estate broker or salesman, and look into the fitness . . . in respect to his character, reputation, and experience, in order to ascertain whether or not from such investigation the applicant is of good character, competent, and trustworthy, and if so, to grant him a license . . . [or if finding] to the contrary . . . deny such person a license . . . that being so, it cannot be held that these acts were intended to raise revenue merely for support of the government.”[16]

Since then, “the Court has repeatedly emphasized the statute’s purpose to ‘provide public protection through the regulation of the activities of the brokers.’”[17]

If you have brought together a real estate buyer and seller, or landlord and tenant, or have been involved in contract negotiations involving real estate, and expect to receive any form of compensation (no matter how it is labeled), you must be a licensed Realtor. Anything less, you may find yourself with an unenforceable claim or agreement or, much worse, guilty of a crime.

If I have to get a license to continue doing what I'm doing, I'll do it. But I've done 4 deals in the last two months and have made 45 thousand while helping 4 different investors get out from under their issues with their properties. Obviously I know what I'm doing. What is a license going to do for me besides make NAR feel better and increase their profits while decreasing mine?

It only upsets other realtors and NAR because they feel like they're missing out on commission on properties they probably wouldn't want to deal with any way and are mad guys like me can do what they do without paying for a piece of paper.