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JerseyJeff

Opinions From A Re Broker

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I got this back from a RE Agent I've been working with. He spoke to his broker about a few questions we had on a bunch of different topics, and this was included in the email:

 

I spoke with my broker and we clarified quite a few legalities. He's a little confused as to what it is your are doing but that's not of importance. He did express that he's quite sure that it is illegal for you to advertise the property at all. He said that having an option to purchase does not get you around the real estate laws that require only personal owners and/or licensed real estate salespersons or brokers can participate in the sale or marketing of real estate or real estate services. The laws are different if every state so perhaps you should look into the RPL (real property law) a little yourself. Regardless, that's a matter just for yourself.... again, not of mine or his concern.

 

Jeff

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I got this back from a RE Agent I've been working with.  He spoke to his broker about a few questions we had on a bunch of different topics, and this was included in the email:

 

I spoke with my broker and we clarified quite a few legalities. He's a little confused as to what it is your are doing but that's not of importance.  He did express that he's quite sure that it is illegal for you to advertise the property at all.  He said that having an option to purchase does not get you around the real estate laws that require only personal owners and/or licensed real estate salespersons or brokers can participate in the sale or marketing of real estate or real estate services.  The laws are different if every state so perhaps you should look into the RPL (real property law) a little yourself.  Regardless, that's a matter just for yourself.... again, not of mine or his concern.

 

Jeff

 

Jeff,

 

I just love situations like this from uneducated real estate agents and those who believe them. Please get the name of the real estate agent, the real estate broker, and contact information for that brokerage. Forward a complaint to the New York Real Estate Commission that the sales agent and real estate broker has practiced law within New York State without a license.

 

Here is a link for the New York State Division of Licensing Services. It clearly defines a real estate broker, agent, and tenant relocator.

 

http://www.dos.state.ny.us/lcns/lawbooks/re-law.html

 

Below is the response I gave to an uneducated real estate agent in New Jersey

 

My Response - On a first read through, it seems to say that no one can buy or sell, lease, rent etc without being classified as a Real Estate Broker/agent.

 

But if this were the case, then no person could rent, (much less buy or sell their own home) without having a license. It would also keep investors from buying a home with the intent of resale for a profit or to rent. So there must be something in all these statutes which exempt people from having to have a license.

 

It is usually found in just 2 simple words hidden somewhere in the definition of a real estate broker.

 

Here they are... “for others". Remove those two words from any of these statute definitions of a realtor and automatically everyone even thinking about buy or selling or rent a home would need a license.

 

The words “for others” create an "agency" relationship between two parties. If you do something "for another's benefit" or in their best interest, you have formed this agency relationship. These words imply that the agent will do "what is in the best interest" of the party they are being employed (or paid) by. Since there is a legal responsibility to do what is in the best interest for another, then the State is allowed to oversee that action so as to prevent the person put into this "trusted" position to be capable of completing the transaction to a certain state standard and to be fair and work in the best interest of the paying party.

 

However, as an investor, I am not working "FOR ANOTHER"; I am certainly not in an "AGENCY" relationship. I am working "MY OWN" best interest and I am trying to negotiate the best deal for me, not the seller/buyer. I am in what is called an "ADVISARIAL" relationship. There is no licensed required since I am not working on behalf, or representation of another.

 

Read the statue again and find those two magic words that allow private investing without having a license.

 

In addition, a contract on property provides Locus Standi (meaning Sufficient Interest) in the property to sell the property as if you owned it. You can advertise property that you own or control.

 

YOUR SELLER AND HIS BROKER ARE IDIOTS. Could it be that the real estate "professionals" can't read?

 

Go forward and teach the uneducated. Get the deal done.

 

Daniel Ng, JD/LL.B (Honours)

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Dan,

 

Thanks for the info. I wasn't doubting what all of you told me; I believe you guys over some broker. It's nice to see what the law actually says.

 

Thanks,

Jeff

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MichaelC,

 

Thanks for the support.

 

Jeff,

 

Remember, this forum is your team and your team has many years of combined experience to making deals happen. If you lack the confidence when a seller asks how long you have done this, you can honestly tell your seller that your team has a combined experience of XX number of years. Make up a number because I'm sure it is astronomical.

 

 

Daniel Ng, JD/LL.B (Honours)

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From my understanding, an option agreement provides sufficient interest regardless of jurisdiction. This thread was started four years ago though, and things have gone to s*** since then. Some states may have passed laws regarding this issue, but I doubt it. Most states have other things to worry about now. And, of course, I'm not a lawyer, this isn't meant to be legal advice, seek legal counsel in your own state, blah blah... :ninja:

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