Home Selling in Brooklyn>Question Details

ebennett11226, Home Seller in Brooklyn, NY

I signed a contract for a friend of mine to sell my house come to finde out that he isn't a licsened broker. But he is still trying to hold liable.

Asked by ebennett11226, Brooklyn, NY Thu Jul 5, 2012

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24
I am not an attorney, but generally a contract is breached if there is any misrepresentation present in the language or terms of the contract. So with that said, I think you have sufficient grounds to have that contract null and void. Please consult an attorney or the Board of Realtors.
0 votes Thank Flag Link Sun Jan 13, 2013
I agree with Rhonda, if you are unsure of what you signed, first off you should have never signed it in the first place. Real estate contracts can and do take place between persons that are not licensed, this has been the case since contracts were developed.

A licensed agent simply represents you as the Seller, if the person is not licensed they are either: looking to purchase your property directly from you or working as real estate investors to sell your property or assign the contract to someone else.

All a licensed agent is doing is representing you, and helping you find a buyer which can be a real estate investor buyer with cash or a traditional buyer with an approved bank loan, which is ultimately what you want (to sell your home). If you need representation you would sign a contract with an agent to sell your home or work with an attorney to make sure that the contract is clear and legal if you want to sell directly to a buyer or a real estate investor that you already have in line to buy your home.

As an investor I personally work through a real estate attorney and use contracts approved by the attorney which I use when I am looking to directly purchase a home from a seller, buy and sell, or assign to another buyer. The biggest mistake a seller makes is not reading what they sign. Word of mouth does not work with real estate because if you need to settle a matter in court, the judge can only "listen" to what is in writing or witnessed by another party.

If you do not understand the language you NEED a real estate attorney to review the contract in order to assure you that it works for you. I hope that I was not too repetitive but it should clear things up for you.

All the best!
0 votes Thank Flag Link Tue Dec 4, 2012
Hello, if he's not a licensed broker then what type of contract did you sign? If you signed a real estate contract then it may not be legal since your friend is not licensed. Definitely consult with a real estate attorney before you make any moves.
0 votes Thank Flag Link Tue Dec 4, 2012
You signed the contract. The contract should state whether your friend is a Licensed Broker or not.

If he/she claimed that they were Licensed and it states that on the contract then the contract is valid if their license is currently active.

If the contract does not contain any License numbers or details, your friend simply told you one thing and is actually selling as a Real Estate Investor would.

If you were under the impression that they were licensed but they never said this, there is nothing wrong with one person selling property under contract for another person as long as the closing is done through a Realtor or Real Estate Attorney here in New York that is the law.

A person does not have to be licensed to sell your property as long as they are working through an Attorney or Realtor to get the sale closed.

At the end of the day, If he/she sells the property that would be your basic concern. I would only work with a Real Estate Investor if they have buyers in line to purchase my home and they are working with a Real Estate Attorney to close the deal to keep things safe and legal here in NY.

All the best!
0 votes Thank Flag Link Fri Nov 30, 2012
Good afternoon ebennett11226,

In New York State only a Licensed Real Estate Broker can receive a commission for the sale or rental of residential real estate. Period. End of discussion. There is no liability on your part to pay your "friend." If your "friend" really pushes you, indicate you may report his actions to the District Attorney's office.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
0 votes Thank Flag Link Thu Oct 4, 2012
Hello, I suggest you look at what type of document you signed to see if your friend misrepresented himself or herself in the contract as a licensed broker. If the document is an actual real estate listing contract and your friend is not a licensed agent or broker then your contract is not valid and you should talk to a lawyer to contact your friend.

If your friend did not say in the contract that he or she is a licensed broker with a particular company and it's just a regular contract to between the two of you then you may want to consult an attorney to see if there's any validity to the contract.

A word of advice, anything that requires your signature you should take time to read carefully for 24 hours even if it's a friend or family member.

Call me if you need any assistance with the sale of your home or other advice.
0 votes Thank Flag Link Thu Oct 4, 2012
Not so fast folks-- I would think the so-called real estate professionals here would first ask if he signed a listing agreement (license necessary for enforcement), or an assignment/subject to agreement (license unnecessary) before foaming at the mouth about attorneys or realtor's boards. It's quite disturbing how little real estate agents and brokers actually know about the business they are in. But I guess that's what happens in an industry where all someone has to do to get a license is have a pulse and pass a test.
0 votes Thank Flag Link Mon Aug 27, 2012
You are assuming facts that were not stated (apparently a disease here on this board). The friend never claims to be owed a "commission". The writer never mentions a listing agreement. To what the letter writer assented is unknown-- he simply stated that he signed a "contract", which tells us nothing. A contract is NOT automatically a listing agreement just because real property is involved. If the LW's friend employed the common investment practice of entering into a contract of sale with him to purchase and then assigned the contract to someone else for a higher price (thus making a profit on the spread), the LW (unhappy with how much the friend is making off of the contract assignment) could be refusing to close. His friend's end buyer could be seeking specific performance. Nowhere in that scenario is a license necessary. Again, PLEASE, for the sake of everyone you do business with, learn a little more about your industry before declaring something to be absolute.
Flag Thu Oct 4, 2012
Sorry, I think you have it wrong. In New York State ONLY a Licensed Real Estate BROKER (not even the Real Estate AGENT) can be paid a commission for selling real estate. Trevor Curran NMLS #40140
Flag Thu Oct 4, 2012
Wow, that is so UN-believable. I'm so sorry to hear that especially that the fact that this was suppose to be your friend, You wanted to help him/her out thinking he/she would do his/her best to sell your house but in the end he/she lied. The contract is voidable, to sell a house you must be a licensed Real estate broker/agent it's illegal to do that and the fines are pretty hefty not to mention fraud and posing as an agent that's also a misdemeanor. Honestly he/she cannot hold you to the contract because it would never win in court. Get yourself a real Agent/Broker that will do the work, who is licensed to sell real estate. As far as your friend I wish you the best on that. Jeannette Batsikas
0 votes Thank Flag Link Tue Jul 10, 2012
If you dont want to get your friend in trouble you should just try to work it out with "the friend".
If you take it to the attorney or police your friend can get into HUGE trouble
0 votes Thank Flag Link Mon Jul 9, 2012
adam -relax its not a huge trouble-dont make it that critic-its a friend
Flag Tue Jul 10, 2012
If it is a good friend and is in a process of getting his/her license you can wait.
If its urgent for you to sell your home quick you should seek for a local professional.
Thank You
0 votes Thank Flag Link Mon Jul 9, 2012
i like all the brokers answers here..how they nice and triyng to suck up the listing !!! LOL ..well i wouldnt do it - good luck -
0 votes Thank Flag Link Sun Jul 8, 2012
so i don't get it - he is your friend or not ??????? LOL
0 votes Thank Flag Link Sun Jul 8, 2012
You definitely need to check with your attorney on the matter.
0 votes Thank Flag Link Fri Jul 6, 2012
Some friend!

Take the contract to your attorney. Next Realtor, go online and verify their license.
0 votes Thank Flag Link Fri Jul 6, 2012
go grab the listing simone - show them !!
Flag Sun Jul 8, 2012
wow..i need a class just to figure out your certification and degrees...hey litsen i got NGLB - NICE GOOD LOOKING BROKER --LLOOOOOOOOLLL
Flag Sun Jul 8, 2012
Dear ebennett11226:

You need to speak to an attorney and then show your attorney whatever agreement you signed (do you have a copy of it, I would like to see it myself). Depending on how it is worded you may have some obligation, but I doubt it. I am curious, how good of a "friend" is this and how long do you know him or her? Is he or she truly a friend or just some scam artist? Please contact me to further discuss, I will get my attorney on a conference call with us for you free of charge. It just rubs me the wrong way when someone takes advantage of a friend, or anyone for that matter.

Although I am not an attorney and I cannot give out legal advice, if it were me I would tell him or her "where to go" in a New York City second and to have a nice life. If your "friend" threatens you with a law suit, tell him or her to feel free to do so. Lets see if your "friend" actually wants to spend money to start a law suit (very doubtful).

Show no fear otherwise your "friend" will take advantage of you. I have plenty of attorney friends who would love to take on a case like this, they will make sure your "friend" pays for their unethical and/or illegal behavior.

If I can help you in any way please contact me. I can also help you sell your home if need be. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Fri Jul 6, 2012
Eben,
It's hard to tell what sort of problem you may have caused for yourself.
Charles did provide an essential piece of information, "Any person who performs the service of selling real estate for another and FOR A FEE must be licensed by New York State"
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That applies in NY and FL and I'm sure in every other state that issues professional licenses.
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Now, none of us know what you signed.
None of us know what your arrangement is.
None of us know your level of knowledge regarding buying and selling real estate and your knowledge of the role of an agent and broker.
And none of us know what is the real meaning of "he is still trying to hold me liable."
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Just way too much we do not know.
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You should consider calling one of the Brooklyn agents responding here and have them review the paperwork you have. They will be able to advise what the next step should be.
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Don't click that "contact' button.
Don't use the email link.
If you are serious...and you really, really should be, pick up the phone and call.
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Best of Success to You,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041 - http://www.RealEstateMadeEZ.us
-
Few things end a friendship faster than introducing money.
0 votes Thank Flag Link Fri Jul 6, 2012
If your "friend" were a real friend this wouldn't be a problem as they would never have gotten involved in something their not qualified or licensed to do. As their not a licensed agent I'm not certain what they were thinking. My advice is to give them written notice that your terminating any agreement you signed and that should they choose not to honor the notice you'll be contacting the New York State Attorney Generals office to report them. Then go find yourself an experienced licensed broker to work with. I've attached a link below on how to find a great broker.
0 votes Thank Flag Link Fri Jul 6, 2012
Good morning ebennett . I assume this is a problem !First a true friend would know to do the right thing ! Any person who performs the service of selling real estate for another and for a fee must be licensed by New York State . If he or she is a friend, have a conversation with for them to do the right thing. If they do not wish to understand contact a lawyer. It should be as simple as the lawyer to make contact with a letter . If I can help or if you want to discuss this further without obligation contact me anytime.
0 votes Thank Flag Link Fri Jul 6, 2012
If your friend is not a licensed real estate broker or agent with a sponsoring broker he can face jail time & fines. In essence you have unknowingly signed an illegal contract which was done maliciously. malicious in nature because it is a fraudulent action your friend has taken. Contract an attorney and submit a release of contract letter... & let me know when your ready to hire a professional!

Regards,

Jack Menashe
917.797.0215
http://www.sherestates.com
jack@sherestates.com
0 votes Thank Flag Link Fri Jul 6, 2012
Good morning ebennett . I assume this is a problem !First a true friend would know to do the right thing ! Any person who performs the service of selling real estate for another and for a fee must be licensed by New York State . If he or she is a friend, have a conversation with for them to do the right thing. If they do not wish to understand contact a lawyer. It should be as simple as the lawyer to make contact with a letter . If I can help or if you want to discuss this further without obligation contact me anytime.
0 votes Thank Flag Link Fri Jul 6, 2012
Hum, an unlicensed guy who doesn't know enough about the profession but wants to hold you liable? Doesn't sound like a friend (or a smart fellow) to me.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Jul 6, 2012
The worst people to do business with is family and friends. Trust me, I learned this through experience too.

Most likely the contract was one that is used a licenced Realtor which makes it null and void.
Give me a call, I know the 11226 area very well. Lets get your house sold.


Luke Constantino
Commercial | Residential
REMAX PARK SLOPE
Direct: (212) 300-3919
Lukeconstantino@remax.net
0 votes Thank Flag Link Fri Jul 6, 2012
Contact your attorney & have him read the contract you signed. Then hire a licensed Realtor.
0 votes Thank Flag Link Thu Jul 5, 2012
Call your local board of Realtors.... I'm sure they'd be very interested in helping you out. I don't know NY law, but this sort of thing would carry serious penalties here in Florida.
0 votes Thank Flag Link Thu Jul 5, 2012
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