How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Legalease Your Own Question

Legalease
Legalease, Attorney
Category: Business Law
Satisfied Customers: 14461
Experience:  14 years experience corps, LLC's and partnerships; preparation, negotiation of complex contracts and business agreements
Type Your Business Law Question Here...
Legalease is online now
A new question is answered every 9 seconds

I am a licensed broker/associate with an active license and

Resolved Question:

I am a licensed broker/associate with an active license and I am thinking about getting into the wholesaling business. I would be getting a purchase contract and assigning the contract to another buyer without ever actually closing. I would be performing the wholesaling activities under a different business name and not associated with my broker. I just want to make sure I'm acting within the law and not putting my license at risk.
Submitted: 11 months ago.
Category: Business Law
Expert:  Legalease replied 11 months ago.

Hello there --

-

When you say "wholesaling business" do you mean purchasing houses at wholesale prices and then assigning them to another purchaser for a fee? Or do you mean some other type of wholesaling business? Can you clarify this a little more for me?

-

-

MARY

Customer: replied 11 months ago.
I mean finding properties that sellers are willing to sell about 75% below market value for cash. I then assign the contract to a cash buyer for a fee.
Expert:  Legalease replied 11 months ago.

Hello there Jake --

-

Your activities would be subject to the parameters placed upon you by your license (for example, it would be as if you are acting as a buyer's agent and if you are generally required to make certain disclosures to purchasers of properties then you would still be required to follow those same procedures even if you are just assigning the contract over to a buyer for a fee). However, what you are proposing is not illegal and you can do it as a licensed broker/agent without any licensing issues. You did state that you will use a different name -- but that will not make a difference because if scrutinized by the licensing board, they will still look at you and any company you create or name you use as operating under the one real estate license that you hold.

-

MARY

Legalease, Attorney
Category: Business Law
Satisfied Customers: 14461
Experience: 14 years experience corps, LLC's and partnerships; preparation, negotiation of complex contracts and business agreements
Legalease and 9 other Business Law Specialists are ready to help you
Customer: replied 11 months ago.
Hello Mary,

Thank you for your response. My question is... am I really performing real estate activities? After all, I am not representing the seller in any type of brokerage relationship. Also, I am not buying, selling, or performing services to a particular party for a fee in a real estate transaction. The way I see it is this, I am securing a contract, then selling the rights associated with that contract for a fee.

Thank you for your opinion.

Jake
Expert:  Legalease replied 11 months ago.

Hello again Jake -

-

Yes, you are securing a contract. But you are securing a real estate contract for a piece of residential real estate which is something that your license regulates. Because the contract touches and concerns residential real estate, your license is involved. I view this as similar to being a buyer's agent. While typically a buyer will hire the agent FIRST and the agent will then scout out properties for the buyer, what you will be doing is still pretty close to that -- except that you will have the property under contract FIRST and then you will find buyers. Unfortunately, because there are so many different and creative ways to handle the purchase and sale of property these days, the statutes and laws cannot address every possible scenario in a specific manner and so you would probably not see any kind of legal review of a situation like this unless there was a conflict and you ended up in a lawsuit over a contract or a property and then the Real Estate licensing board and the courts would have no choice but to get involved and the end result would be a legal definition for what you propose and an opinion from the RE board and the court regarding whether or not this rises to the level of being regulated by the RE board as part of your license and if so, the parameters and guidelines of such regulation. My suggestion here is to contact the RE licensing board and ask for their opinion on this matter -- most RE boards will let you speak with an administrator who can at least offer a verbal opinion regarding whether or not you must follow the strictures of the RE board due to the fact that you have a broker/agent license (a verbal opinion in such a situation may not hold up in court as a defense for you later if there is suddenly some legal action or legal conflict regarding what you are doing -- but it may help any judge to know what you were told because a judge could use it as guidance).

-

MARY

-

Please press the 3rd, 4th or 5th smile face below so I will be paid for my time. I am paid NOTHING unless you press a positive rating below (I do not receive a paycheck). Pressing a positive rating below will not cost you any additional money -- it simply acts as a trigger to Just Answer to pay me for my time. Bonuses are always appreciated and can be added in the pop up that will appear after pressing a positive rating button. THANK YOU VERY MUCH

Legalease, Attorney
Category: Business Law
Satisfied Customers: 14461
Experience: 14 years experience corps, LLC's and partnerships; preparation, negotiation of complex contracts and business agreements
Legalease and 9 other Business Law Specialists are ready to help you
Customer: replied 11 months ago.
Thank you Mary,

Your advise is very valuable and I generally agree that I should appeal to the board for guidance. I still question the premise with regards XXXXX XXXXX question; am I actually using my license (and therefore, am I responsible for the liabilities inherited in, when I perform any action? (possibly with a disclosure of "no brokerage relationship") business transaction, with a disclosure stating that I am not providing any RE services. Generally speaking,Can I either, disclose my brokerage license and not assume the responsibilities, or suspend those responsibilities and still perform the desired functions using a disclosure and not perform these functions under my brokers license, since I am not selling or buying RE n the what I interpreted it. Not physical, or intangible rights t... Other than rights to sell a contracts t purchase? That is really the thin line I am trying to walk...

Thanks,

Jake.
Customer: replied 11 months ago.


Hi Mary,


 


I think my last response got a bit scrambled. I think I was trying to replace a sentence in the middle and did not erase the old sentence. Anyway, I reread your previous response and I think you have a adequately answered my question.


 


Thanks,


 


Jake

Expert:  Legalease replied 11 months ago.

Hello again Jake --

-

I think it is a thin line that you are walking here and a conversation with the board is in order. As I said there is nothing concrete, legal to support your position and so you will have to rely on general interpretations and hope that all works out well. Good Luck

Legalease, Attorney
Category: Business Law
Satisfied Customers: 14461
Experience: 14 years experience corps, LLC's and partnerships; preparation, negotiation of complex contracts and business agreements
Legalease and 9 other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA