Illegal Birdogging

I was under the impression that birdogging was illegal in some states--namely my state of Wisconsin. Does anyone have info on that?
Thanks

Comments(4)

  • Goose_man3rd February, 2004

    I don’t see what’s illegal about finding a great deal on a property and telling someone about it... do you??

    I think what you’re getting hung up on is the “finder’s fee”. Keep in mind it’s just a finder’s fee and not a commission.

  • RRMerz3rd February, 2004

    I know that here in New Jersey a broker/agent giving a finders fee to a non-licenced person is illegal. this may be what you are thinking of.

    But a private investor doing so shouldn't be a problem at all.

    All the best,

    Raymond Merz

  • mperakes3rd February, 2004

    Imagine this: You're an independent home repair/painter/whatever - the buyer can pay you for doing "work" on the house .

  • JohnLocke3rd February, 2004

    Jenmonkey,

    Glad to meet you.

    Every once in a while I post this answer so everyone understands including anyone who might be putting out this propaganda.

    The local Real Estate Boards impose regulation relevant to the distribution or aid in distribution of a homestead with the intent to protect the consumer (and in some rare cases monopolize the marketplace).

    Whether or not this legislation is put into place in a criminal or a civil context, it does appear fairly evident that the enforcement of this legislation would be limited to that of:

    a) When a consumer is being blind-sided (ie: you are acting on his or her behalf without proper licensing and steering him/her wrong)

    b) You are continuously taking a "fee" for selling real estate.

    If you are working with an investor, and you are paid by the investor, who has experience in real estate transactions, and you are not party to that transaction (ie: a consultant) you should, (this is not to be construed as legal advice) be ok, for the following reasons:

    1) You are taking a fee for selling information, not real estate (nobody can prevent you from charging $5.00 to tell him or her were the nearest gas station is, or where the nearest "deal" is)

    2) Even if legislation was in place to protect the consumer, you have conducted no harm to the consumer....so in a semi-perfect world, you can indeed pay for a lead on a house!

    I think it is important to know, most investors are opposed to the local Real Estate Boards attempting to corner the market on Buying/Selling properties.

    I am certainly of the opinion that the local Boards would like to see no investors/creative RE at all so that they can continue to take a small chunk out of every property sold and have the properties sold according to their "rules & regulations".

    There is also such a thing as a simple Partnership Agreement, thereby making you and the investor principals in the transaction.

    The Bird Dog is bought out of the Partnership by the investor, thereby violating no State Statute. I really do not believe it has to go to the Partnership Agreement.

    John $Cash$ Locke

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