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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I am thinking of starting an LLC business in Pennsylvania.

Customer Question

I am thinking of starting an LLC business in Pennsylvania. This business will be a reservation company for luxury villas in the Virgin Islands as well as excursions. I will only be providing villa owners free advertising space and will take reservations. The vacation agreements will be between the individual villa owner and the vacationer. I will have no parts of managing a villa and the information and representation of the villa provided will be through the property owner and not my business. I have gotten conflicting information as to whether or not I need a real estate license. These will only be for one or two week reservations and soley for vacation purposes. This will not be for any type of rental as far as someone's place of residence for any length of time. Thanks
Submitted: 1 year ago.
Category: Business Law
Expert:  MShore Law replied 1 year ago.
Thank you for the post, I am happy to assist you by answering your questions. Will you generate any revenue by virtue of a lease/reservation?
Customer: replied 1 year ago.


Not sure if my reply on phone made it through......but I would get a 10% commission of the weekly rental just like the calendar holder for the villa would receive 10%. I was previously told that as long as I was not the property owner or property manager I shouldn't need to be under a broker but wanted a second opinion.

Expert:  MShore Law replied 1 year ago.
Thank you, then you are essentially acting as an advertiser, are you also selling the lists of available properties?
Customer: replied 1 year ago.


We would be acting as place for property owners to advertise their own villa. Not sure what you mean about selling the lists of available properties. Our only advertising would be through our website. We would not be giving lists of the villas to anyone else.


 


Also, you would call us to make a reservation at one of the properties on our website. We would contact the owner and see if the home is available for rental. We then would give a quote to the renter and they would send us the rental money. We keep 10% and forward the rest to the property manager/owner. We would be merely acting as an advertising entity for people who don't want the hassle of advertising their vacation home.

Expert:  MShore Law replied 1 year ago.
Thank you, you are essentially then acting as the owner's agent in listing the property, confirming reservations, and accepting payment. It is not technically accurate to say that you are only acting as an advertising entity due to the fact that over and above merely advertising the availability of the property (such as would be the case with a newspaper or real estate circular) you are also accepting reservations and processing payment for a fee. You would be considered a broker per 25.201 and RELRA. For your reference, see h ttp://books.google.com/books?id=UcLz8CDp-XUC&pg=PA190&lpg=PA190&dq=PA+rental+listing+referral+agent+license&source=bl&ots=8aRjkmz6SQ&sig=b_m14kEZUjc8Yx5yuW3VcahR79M&hl=en&sa=X&ei=knZcUcDeDsqU0QHmwYGgCw&sqi=2&ved=0CE0Q6AEwBQ#v=onepage&q=PA%20rental%20listing%20referral%20agent%20license&f=false (page 184). I want to make sure your questions are answered, please let me know if this does not answer your questions or if you have any follow up questions. If I have answered your questions, please positively rate my answers.
Customer: replied 1 year ago.


Sorry for the delay. What if I own property in the Virgin Islands and set up my LLC in the Virgin Islands, but still live in PA.

Expert:  MShore Law replied 1 year ago.
If you own the property in VA then you would not need a license as you are not acting on behalf of another party.

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