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Do you need a real estate/broker license to broker licensing…

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Do you need a real...
Do you need a real estate/broker license to broker licensing agreements, i.e. colocation agreements, between parties, when dealing with data center space, including bandwidth, rack space, etc.?
Submitted: 8 years ago.Category: Real Estate Law
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Answered in 1 minute by:
6/24/2010
Real Estate Lawyer: David L, Lawyer replied 8 years ago
David L
David L, Lawyer
Category: Real Estate Law
Satisfied Customers: 3,255
Experience: Attorney licensed in multiple jurisdictions.
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What state are you in? Are you leasing space?
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Customer reply replied 8 years ago
I am a licensed real estate broker in the state of California, with a real estate licensee working under my license, as a data center consultant/real estate licensee, dealing with colocation agreements and licensing between IT companies. We also sell and lease space in data centers as well as licensing.
Real Estate Lawyer: David L, Lawyer replied 8 years ago
What is your concern if you are both licensed? Are you considering hiring unlicensed persons to do the same job?
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Customer reply replied 8 years ago

I discovered that my licensee was hiring non-licensed persons without providing me with their reumes or an explanation of their current activities.

I also discovered that he has a business bank account with my dba. He claims that his dba which utilizes the term "Real Estate Group" is his consultant business as well.

He claims that he is a data center consultant first, then a real estate agent.

He terminated our Independent Contractor Agreement last month and refuses to provide me with any information regarding pending transactions, including licensing agreements and the selling and listing of data centers.

He basically is a "rogue" licensee who recently received his broker's license in California on June 15th, 2010. He states that licensing is a "gray area" with the DRE and a broker's license is not needed.

Real Estate Lawyer: David L, Lawyer replied 8 years ago
I think your issue relates to tortious interference with a business relationship. You hired a person who has attempted to take your business from you. I would send a cease and desist letter and threaten to sue if he continues to steal business from you.
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Customer reply replied 8 years ago

Thank you for your esponse and allowing me to explain in further detail.

But getting back to the original question, do you need a real estate/broker license to complete licensing agreements as they relate to data centers?

Real Estate Lawyer: David L, Lawyer replied 8 years ago

You can review the pertinent law here:

 

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=10001-11000&file=10130-10149

 

However, if the person does any of the following (amongst other things):

 

(a) Sells or offers to sell, buys or offers to buy, solicits
prospective sellers or purchasers of, solicits or obtains listings of,
or negotiates the purchase, sale or exchange of real property or a
business opportunity.


(b) Leases or rents or offers

to lease or rent, or places for
rent, or solicits listings of places for rent, or solicits for
prospective tenants, or negotiates the sale, purchase or exchanges of
leases on real property, or on a business opportunity, or collects
rents from real property, or improvements thereon, or from business
opportunities.

 

If leasing space in a data center is a lease of real property, they would be in violation without a license. I don't entering into licensing agreements requires a RE license, however, selling and leasing space may require a license if you are selling or leasing a real property interest.

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Customer reply replied 8 years ago

Thank you for your expertise.

 

I believe these licensing agreements might falll under business opportunities.

 

Whether or not a broker's license is required will have to be determined by the California DRE, I suppose.

 

Thanks again.

 

Sincerely,

 

Dean

Real Estate Lawyer: David L, Lawyer replied 8 years ago
Thank you. Please let me know if I can be of any further help.
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