Suppose you sign a contract with a seller to purchase a house. With that contract in hand, you start marketing the property (place ads, conduct open house, send emails, etc). You then find a buyer, and do a double closing.
While this is a typical transaction made by hundreds of real estate investors every day, some people argue that you can't market a house that you don't yet own, because you would be acting as a real estate agent and you need a license for that.
Does the fact that you have a valid contract allow you to market a property for sale without breaking real estate agency laws?
2006-08-30 05:07:03 · 7 answers · asked by habitatrei 1 in Business & Finance ➔ Renting & Real Estate
What these people are arguing about needing a license makes no logical sense. That doesn't mean it's not a law where you are, I suppose!
You don't need to be a realtor to sell property, however. You need to have a license in order to call yourself a realtor and you need a license to get a slice of that commission when you're selling a property. Otherwise, you are free to sell property on your own.
2006-08-30 05:15:23 · answer #1 · answered by cassandra 6 · 0⤊ 0⤋
When you have a property under contract to purchase it, unless it states it explicitly to the contrary, it is ASSIGNABLE. Flipping before closing implies that you create a separate assignment contract with an end buyer and then assign your position as buyer in the original purchase agreement.
In that case you do not have to do a double closing, which is much cheaper b/c you don't have to pay closing costs (especially taxes) twice.
Really you aren't marketing the property, as much as you are marketing your contract. You are marketing the OPTION to buy property x at price a+b where a is the sale price agreed with the seller and b is the profit you add to the sale price - "a+b" is the sale price in your assignment contract with the final buyer.
2006-08-31 06:30:44 · answer #2 · answered by Anonymous · 0⤊ 0⤋
When you purchase a property you must have a clause in the purchase agreement that allows you to do what you are doing and it is very common. This clause would avoid a whole bunch of problems.
There are no laws that prohibit your ability to buy and sell properties in your name unless such actions are illegal as a direct result of your intent or purpose.
As to the license needs, your drivers license at closing is all you need.
2006-08-30 05:32:01 · answer #3 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
Cassandra is right. But, to be safe, you might want to contact the a local Real Estate Attorney. Some states may object to that type of transaction.
2006-08-30 05:36:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There is nothing with marketing the property in this manner.
2006-08-30 06:06:23 · answer #5 · answered by Meegan 1 · 0⤊ 0⤋
IF the settlement has an assignability clause ( or no clause scuffling with project) you could assign, for a earnings, the valuables. The customer of the project then is on your footwear and can do something you will possibly have finished.
2016-10-01 02:20:45 · answer #6 · answered by ? 4 · 0⤊ 0⤋
If you aren't in Seattle or Texas area, it would be very hard to do flipping. Housing market continues to slump.
http://money.cnn.com/2006/08/23/news/economy/homesales/index.htm
http://money.cnn.com/2006/08/24/news/economy/newhomes/index.htm
2006-08-30 10:07:25 · answer #7 · answered by Price is what you pay for value. 3 · 0⤊ 1⤋