Can UK Individual sell US properties?

[RE Online]

I am a UK resident individual with a website that advertises properties for sale worldwide - but I'm not charging any fees yet (ie no fixed price FSBO fee, or commission on closed deals)

I know I would have no problem introducing a fixed FSBO fee for listings - but I am considering introducing a commission on closed sales instead.

Obviously, a US resident individual couldn't do this, unless they were a licensed broker - but I'm wondering if it is legal for a UK citizen to advertise US properties and charge owners a commission on sales.

I wouldn't be actively operating in the US - no physical office or employees etc - I would just have a US property advertised on my UK based website.

[Micheal Pannell Realtor]

i dont know that you could track it. whatt if they sell though somewhere else why would they pay you.

[RE Online]

I appreciate that there could be problems tracking it and receiving payments owed - but that is a separate issue that only needs to be considered if it is legally possible for me to operate in this way.

At the moment, the first thing I need to do is just clarify if this is a legal option for me.

[Micheal Pannell Realtor]

i think that you should just charge a listing fee, alot of folks do it and alot of folks pay it. IF you site was big enough you could get a broker in each area to list them on mls for a flat fee. Then you could charge your customer a flat fee listing with mls. I think that this would be legal.

[RE Online]

I'd be very happy listing properties for a flat fee - it's a sensible business model that works - and there is a good chance that I will choose to go that route, simply for 'tracking' reasons.

But before I decide to go that way, I just need to clarify if charging a commission is a legal option - so if anyone can offer any advice on that specific question, it would be much appreciated.

[RonnieG]

Simply put: In most US states, if not all, an unlicensed individual receiving a commission from a real estate transaction is not a legal option. Title companies and closing attorneys will check license status, and will not remit commissions or other sales fees to an unlicensed individual, or to an agent who may have been licensed but whose license has lapsed, gone inactive or been rescinded by the state, which happens all the time. Stick to a flat fee "advertising" fee, collected up front.

[RE Online]

Ron

Can a commission be paid to a UK estate agent?

My point is, that since the UK has no real estate licensing requirements (anyone can set up an estate agency perfectly legally, with zero qualifications), I am effectively the same as a UK estate agent.

[Saodavi]

RE Online: I think you're pursuing something that you probably won't want to. How are you going to enforce this? What if they don't pay? What about all the different countries and their different laws?

I'd recommend keeping it simple. Charge a flat fee for your service. You'll get paid upfront regardless of whether the propriety sells. You might even make more this way.

[RonnieG]

Check your options with an attorney familiar with RE laws in each of the 50 US states. In the two I am familiar with, what you are proposing is NOT legal. We may be able to pay a referral fee to an appropriately licensed offshore entity, but even that may be questionable.

[judyo]

I agree that it would not fly since you're not licensed here. In fact, even if you were located in the U.S. you would have to be licensed in all states (or like nuhomesource mentioned, you get a licensed agent in every individual MLS to input the listings and they would have to follow the rules for their state & area & you'd then have to have an agreement with each of those agents - not just one agent per state, but one agent per MLS). In IL those agents are expected to offer minimal services for any listing. They can't just input the listing and walk away.

Charging a fee for advertising on your site is not the same as a commission. However, the U.S. already has some heavy hitters doing the very same thing so why would a seller want to list with a site based in another country? The established FSBO sites we have here already have not hurt my business and with our current buyer's market, sellers need more help than they have in a long time.