I Bought An Investment Property And I Will Need To Sell It
Hi there
I bought an investment property and I will need to sell it, can I go in that area ( neighbors from this property ) and knock the door and tell them that I need to sell this property that if they know from someone that could be interested let me know asap and I will give them a good compensation or a good referal fee ? It is not illegal ? since I am not using any realtor ? I can sell it by FSBO and can I go with people asking if they know someone I will give them a referal ? let me know if I can do that, I am worried to knock doors and later on to mess in a legal problem
thanks
RAy
In most states it is unlawful to pay someone a commission or fee to sell your house unless THEY are licensed to sell real estate in that state. That is under the Uniform License Law I believe Nation wide.
Why do you just not put a FSBO sign up?
I have heard that it is illegal for someone to take compensaton for a property sell if they are not a realtor. It is not illegal to give the compensation. But really, is anyone going to get "in trouble" for this?
John Locke and all the gang,
thanks for your answers, so I will just tell them that I will give them a compensation if they find a person who is interested on this house, but on any way do not try to sell my house, just find me the person could be interested , I am the owner and I will be the FSBO.
So how does it sound that? better ? I am doing right now ?
Thanks
Ray
Ray,
You will do fine with the way you propose.
John $Cash$ Locke
[addsig]
I see nothing wrong with that way you now describe but to take compensation "FOR SELLING REAL ESTATE FOR SOMEBODY ELSE" requires a license unless you are a Lawyer or an Executor/Administrator of a deceased estate. THAT is the law in most states. Another thing a REALTOR is a Real estate broker that belongs to the National Association of Realtors and he may have other real estate brokers and real estate agents that work for him that also belong to NAR and are referrred to as REALTORS. This is a State and National Trade organization NOT the STATE LICENSING COMMISSION OR BOARD. Their rules are different sometimes on some things but they still get their license from the State to practice Real Estate Sales and management. They have to follow the rules and laws they are licensed under and there are National (Federal) Laws they have to follow. There are many fees that are illegal to give OR take under RESPA (Real Estate Settlement and Procedures Act), referral fees for anything related to the settlement process is a big area. Bird dogging fees are not specifically mentioned but finding someone to do something and performing the tasks to get it done are two completely different things. LICENSED BROKERS and agents do many things but whether they break a law is up to them to consider. They are licensed and required by many statutes to do things a person acting for his own without license can do, but they are doing it for compensation and it is required they follow the law. I am NOT saying bird dog fees are illegal, SOME ARE!!!!. I am not trying to be protective of REALTORS or Brokers but just supply accurate information if I can.
A referral of up to $600 can be paid to persons not holding an active real estate license in CA. You state likely has a similar threshold - check your states real estate web site
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