Mass RE Law Help
Hey guys.
Here is the situation.
I am a licenced agent. I am also an investor. I found a foreclosure, (3 million dollar property) and also found somone who would be interested in it. Now, the person who is selling the property now (also the mortgagee. You see he held paper on the property, and the initial buyer is defaulting, so he is going to sell the property back to the mortgagee, and i have a buyer for it) My question is this, If i disclosed that i am a licenced agent, however said that i am not acting as a licenced agent, can I legally accept a "finders fee"
[addsig]
Sounds to me like you're walking on thin ice, because, if you accept anything for your "finding" services, that would likely be a commission belonging to your RE Broker...and if you didn't fully disclose you are an agent, that would be violation of MA RE Licensing law.
You'd better bring your Broker in on this so he/she knows what you're doing.
If any agent of my office did anything like this, without disclosing he/she IS an agent, and without running it through my office, he/she'd be history with my co., as I'd hand him/her his/her license and tell him/her to get out and stay out.
Also, I'd report it mighty quick to the RE Commission as I think it would be licensing law violation.
like i said, i DID disclose that i was licenced, and my broker is well aware of what Ive been doing, LONG before i became an agent
I just spoke somone who has gone through what I have. The suggested, an equitypartnership, with "shares" of the property to be held by you, equaling an "x" amount. With the number of shares to be bought at closing. then signed and paid as full
[addsig]
Let me see if I understand you correctly...
You found a property in which the owner/mortagor has defaulted on the loan and is going to sign a deed in lieu of foreclosure. At this point the mortagee is now the owner and it just so happens that the mortgagee/owner is a private individual.
It sounds as though you have a buyer for a property you have no principal interest in and you are wanting to collect a fee for matching the buyer and seller together.
This is a classic example of brokering property, which you do need a RE license for. You do have one so why not take the comission through your broker? My only thought is that you don't want to split the profit. Am I on track here??
Quite frankly you need to either involve your broker or take title to the property in some way. You'll have to disclose that you are a licensed RE agent regardless.
you are exactly correct. I basically can't see giving 40,000 to an individual who had nothing to do with the deal, and want to keep most of the 80,000 (if not all) for myself to reinvest
Sorry Birddog, them's the rules of the game.
Not that the rules are not subject to negotiation. Go to your broker, explain the situation mention that this a big deal and a big commission and you don't want to follow the standard split. The terms of the split are not in the RE law they are contractual between you and the broker.
A smart broker will be glad to change the terms of the split to keep a big producer in the house. He knows if he doesn't you have a couple of choices,
1) move your license elsewhere
2) go do the work to get a brokers license yourself.
Either way this is not the only deal you will ever do and he looses the future commissions if you are unhappy. He'll make a deal.