Help w/ New Online Service for Landlords/Property Managers

[calvin1214]

Howdy!

I'm in development of unique online service for property managers & landlords that will maximize the value of their rental properties. This service will involve listing their units on our website for public viewing. Think of this as an online classified site... but tweaked out.

My question is...

I do not have an agents license or a broker license. I've been getting mixed answers as to whether I need to those in order to "advertise" listings.

Can some of you guys provide me a straight answer?

Thanks

Calvin

[Dan Connolly]

As I understand it, in my state, if you are charging a flat fee for advertising the listings that doesn't change according to the list price, you can do it. But you have to send the inquiries directly to the listing agent. You can't have someone who speaks to the clients unless they are simply taking a name and phone number. If you get a referal fee or a fee that is based on a percentage of the selling price of the house, they you have to be licensed. Or if you discuss the property with a buyer, financing terms etc, you need a license.

That beoing said, I am not a lawyer and this is only an opinion. RE laws change state to state so you may want to seek legal advice in the state(s) you will be working in.

[Malok]

Going to vary from state to state in all liklihood.


IMO, call the attorney for the state real estate commission, or even the local board of realtors.

If you get the thumb's up to do it without a license, request they send a letter to you in writing for your records so later on you have it as a supporting document.

[calvin1214]

As I understand it, in my state, if you are charging a flat fee for advertising the listings that doesn't change according to the list price, you can do it. But you have to send the inquiries directly to the listing agent. You can't have someone who speaks to the clients unless they are simply taking a name and phone number. If you get a referal fee or a fee that is based on a percentage of the selling price of the house, they you have to be licensed. Or if you discuss the property with a buyer, financing terms etc, you need a license.

That beoing said, I am not a lawyer and this is only an opinion. RE laws change state to state so you may want to seek legal advice in the state(s) you will be working in.

my fee will be based on a percentage of the unit's rental price. i plan to have my website collect vital information of each potential renter (for credit checks), and provide it to the property manager for tenant selection. even if this is for rental units, will i still need to get a license? If so, will i need a broker or an agent license?

i plan to do business in CA. if i contact the DRE, will they answer my questions even if i'm not licensed?

thanks for all the help

[Malok]

The attorneys for the local board, and real estate commission answer 436264664643 questions a day from non-licensees where I'm at.

I'm sure the same should apply for you as well.


Good luck in your endeavor.

[Dan Connolly]

I think it is pretty much universal that you need a license if your fee is based on a percentage. But check with the state Real Estate Commission, or an attorney in CA.

[avonreal]

but surely if you're just advertising and not dealing with the customer; i don't think claigslist or any other clasiffied needs a licence to list properties.

[jasoncrouch]

I think Dan is correct here. Keep in mind that Craigslist and other classified sites don't collect money based on a percentage of the property's price/rental amount.

You might be able to do this if your fee is not contingent on the property closing (i.e. all fees paid upfront as marketing costs). I think it is when you collect money based on an actual closing that you can get in trouble.

[calvin1214]

I think Dan is correct here. Keep in mind that Craigslist and other classified sites don't collect money based on a percentage of the property's price/rental amount.

You might be able to do this if your fee is not contingent on the property closing (i.e. all fees paid upfront as marketing costs). I think it is when you collect money based on an actual closing that you can get in trouble.

You are correct. I contacted the deputy commissioner of real estate here in CA and he mentioned the same thing. If I am representing the property manager and collecting a fee, I need a license.

Soooooo..... I've signed up for courses and am off to get my broker's license.

Thanks for the helpful info guys.

[jasoncrouch]

Calvin - Glad to be of help. Good luck with your business!