Utah Division Of RE Is Giving Me Sh?#
I bumped into this site while doing some real estate research, very impressive, many of you really know your stuff - please help.
I was called into the utah state division of real estate and was told that doing an option to purchase was illegal - they claim that I am selling real estate without a license, now my understanding was that an option to purchase gives me "interest in ownership" which allows me to find another buyer for the home who will purchase my option. Is this not correct, is the division of re smokin weed? If you can help, i am looking for "proof" that I am within the law. I am consulting with an attorney this afternoon as well, any help would be great.
by the way, the state also went on to tell me that basically all "real estate investors" are acting illegally, options, lease/options, trusts, deeds, etc.
Sounds like a bunch of ignorant crap going on there. First of all - I've never heard of a division of RE, I've heard of community development - but no division of RE...
Anyway - purchasing with options couldn't possibly be illegal, could they? I mean all you are doing is signing a comtract saying that you have the right to purchase this contract in the next year or 2 or 3... That's all... This is going to have to be a local thing - let us know what your attorney says... It just sounds weird!
Good Luck!
[addsig]
This is same as any one of the 50 states RE Licensing Agencies would tell you, in their zeal to look effective.
But, truthfully, a good bit of their advice/info is really overkill, unreal & buggywash.
My advice? Don't EVER call one of those agencies unless you're complaining about some RE licensee in that state, and for sure, don't YOU ever talk or meet with them if they request it...ask your lawyer to do it for you, so they can't intimidate you.
See my article here on "Atty Gen Wants to Talk to You".
Good luck.
John Merchant
[addsig]
In NJ we had what was (and may still be) called the State Department of Banking and Insurance... which is the authority for the licensing of real estate brokers, and brokers' agents.
Perhaps in their view what you are doing isn't necessarily illegal... but doing it without a license may skirt the licensing laws in your State.
They may view that bringing together a buyer and seller is an activity that requires a license. The Option?
They may view the Option as little more than a listing agreement.
I can see that the State Real Estate Division, and/or the State Board of Realtors may lobby against such practices since it deprives them of membership and licensing fees.
Let us know what your lawyer says.
Being as I am in Utah as well.. I would like to know more.
How did they "call you in". Did they get the # of a sign of yours and call you up?
Just curious how it all came about...
Also wondering how it could be illegal.. selling your own real estate doesnt require a license.. unless there is some annual limit in this state I don't know about.
okay, here's the skinny-
the problem the state had was in my advertising properties for sale and not "options" for sale. the chief investigator did seem to gloat in the fact that he is calling in multiple investors a week and slapping their hands- so investors in utah beware!