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<Steve>

That's it

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Been ordered to a settlement conference by big brother. Looks like I’m going to be shut down, at least for now. I doubt there will be much negotiation.

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That is how I really see it MC.

 

Basically the complaint was from last year and the t/b in a CA decided not to purchase due to a job transfer and moved. The owner filed a complaint to RE Commission to see if the assignment fee was a deposit that they could obtain.

 

The Commission has gone on to investigate if I was brokering without a license, which I am not. I have not received the formal complaint submitted by the owner, only letters of inquiry, and have not received any evidence that the Commission claims to have. I will be asking for it.

 

Simply they said my $10. consideration paid to the seller was not enough skin in the game for a $229K house and my deal was a sham. That I am bring a seller and buyer together as a broker. These are their words.

 

I pushed back hard and clear in my response to them and it has worked in the past, but they are not listening this time. My market has been slow the last couple of years and I just don't have the cash flow for an attorney.

 

Their most recent comment is that yes I am licensed now, but my LLC is not. I will not be able to license my LLC until I work 2 years under a broker. Then I can go on my own. But that has nothing to do with being an investor only a broker.

 

Sucks doesn't it.

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Yeah, it does suck and it's BS. It's nothing more than a greedy homeowner crying to a agency that likes to flex its muscles. Unfortunately, you're caught in the middle and this seems to be happening more often. :angry:

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Well my broker-in-charge was contacted by the commission about a month ago that I was being investigated. She ask that with this new turn that I submit all the letters and paper work I have to the firms legal department. So, I might get some help, or I might be seen as a newbie realtor with baggage.

 

I do think getting a license has surprised and maybe emboldened the commission as having more control of what I do.

 

Anyway, thinking of my options and will just play it out for now.

 

Thanks for letting me get it out. :)

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Steve, I was recently talking with an attorney in the Raleigh area that told me this. He went before the RE commission with a client, something about the $10 not being enough option money. He said the commission told him that they would not put it in writing but would be fine with $100 option money.

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Hey Mike, that's good to know.

 

More often now I will share my fee with the seller $500. to $1,000. as consideration paid to the seller. It just depends how important it is to the seller. Many times the consideration is not what is important, so it is not a strong point in negotiating the deal. If it is, I just add it on top of what I would expect to receive.

 

If there is a law or regulation stating an amount required as consideration in a deal I will be the first to comply. I work hard in following state laws. There is no such law. In fact being licensed I have been taking commission accredited license courses that specifically teach the consideration paid in a lease option or any deal is whatever is agreed to. I directly asked the question in class, and there is no required amount.

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Any updates? I am about to contact some sellers & this topic has me pumping my brakes. Steve did you fill out all of the proper paperwork so that you would become a principal in the deal. Michael if you could verify that being a principal in assignment deals is still a viable option I'd appreciate it.

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Yes, of course I use the correct paper work. I've had real estate attorneys review what I do and the paper work. I also include signed disclosures that state who I am, who I am not, and what I do. I follow state laws and do everything correct. If I am doing something incorrectly I will modify my business model to follow the laws of the land. But they have to follow the laws too. And assigning my deal as a principal is not brokerage.

 

To update, I have asked that they send me all evidence they claim to have and the formal consumer complaint which I have never received and should have. My feel is that they are still fishing.

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. . . Michael if you could verify that being a principal in assignment deals is still a viable option I'd appreciate it.

Yes, with the correct paperwork placing you in the deal as a principal, you are good to go and can assign your deal. Steve is correct: NC is on a fishing expedition.

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Steve, are you offering any rent credits now? Are you requiring the tenant buyer to handle any of the repairs? There's a small clause in the tenant/landlord statutes that seems to crack the door open for this a little.

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