Disclosure Of Real Estate License
Does it make sense to obtain a real estate license if we are involved in investing? On the positive side, I could list any properties that we purchased and wanted to sell. On the downside though, we would have to disclose my license status to any prospects. Whether we are working with someone who is selling their home on their own, or it is a preforeclosure situation, it might seem suspicious to be approached by a real estate licensee. Thoughts?
I am struggling with the same concerns as my license recently expired and needs to be renewed. Here are my thoughts on the issue.
Initially (18 yrs. ago) I enrolled in our local R.E. License training school to develop an understanding of the real estate industry prior to jumping into the investment pool, and then obtained a license and practiced part time for 18 months, which bolstered my real estate, education and finally I made some small change as a referral agent.
I am concerned with the same issues of disclosure when approaching pre-foreclosure prospects, not only can this cause apprehension or distrust when you meet them initially, but unless you get them to sign a disclosure document stating that you are acting only as a pure investor and NOT an agent/broker/lawyer/accountant/banker, I think we could face potential legal ramifications if a deal were to sour. Seller/Buyer may be able to claim they were taken advantage of.
In some states, only property owners or licensed individuals can rent property, so if your properties are held in Corp. or trust then you must be licensed or hire a licensed person to act on your behalf. Another troubling statement, which was made by a local Board of Realtors training facilitator, was that holders of Real Estate licenses that rent their own properties are not given any consideration for errors in housing court. In other words you are supposed to know all the rules & regs as a licensee so if you goof up and make a simple human error your treated as having purposely committed a violation and in most cases are punished to the full extent the laws allow.
Finally, I wonder how to navigate this tightrope of transferring/selling/flipping properties without actually acting as a broker. I think of you were never licensed you might have an ignorance defense if trouble arose.
Personally, I will renew my license, as it will enable me to rent my properties legally and stay current with laws and regulations.
Try calling their main consumer account number (1-800-TOWELLS) and see if they might know the number.
I got this Wells Fargo number from a previous TCI post, called it yesterday to get their short sale requirements, and they sent me a fax before the end of the day -- 877-216-8448.
877-216-8448 it is!
Hey Diesel,
Greetings. If you have any doubts about ethics, try out the legality aspects of violating the Privacy Act.
Cheers,
C- :-o