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Asked by Tim O'Grady, Plano, TX Thu Feb 19, 2009

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Answers

6
T.E. & Naima…, Agent, Dallas, TX
Fri Feb 20, 2009
Tim, your profile says you're a Real Estate Pro - other. My guess is that you are an investor, not a licensed real estate salesperson. Texas Real Estate Licensing Act (TRELA) requires that anyone who offers to find a property or broker a deal for money for others must be licensed by the state, and there are training and educational requirements to get there plus examination and registration. The purpose of the law is to protect the public from acts by persons not trained in the law of agency and real estate practice.

If you are partners with the investor, you would be a principal in the transaction. Principals are free to operate without licensing. If you do not own the property and are not buying it, you would not be a principal and would be required to be licensed to receive any money for participating in the sale.

http://www.trec.state.tx.us/formslawscontracts/rules_codes/rela.asp see chapter 1101
Web Reference:  http://www.SumnerRealty.com
0 votes
Dp2, , Virginia
Thu Feb 19, 2009
I'll build on Emmanuel's and Bruce's answers.

First, they both are correct that you'll probably run afoul of the law--assuming you're not a realtor. However, as Emmanual mentioned earlier, there's nothing wrong with that transaction if you're one of the primaries (or principals) on this deal. Yet, in the latter case, that "finder's fee" would instead be an assignment fee or the profit from a flip--depending on how you and the other primaries structured this deal.

The key here is to not broker anything if you're not a realtor, and the only way you get to profit from the deal at all is to be one of the primaries.
0 votes
Bruce Lynn, Agent, Coppell, TX
Thu Feb 19, 2009
Tim,

You probably need to check with your attorney, but that sounds like the practice of real estate. Potentially you need a license to do that and earn a fee.
0 votes
Emmanuel Sca…, , Collin County, TX
Thu Feb 19, 2009
Hello Tim,

It is quite possible that you can run afoul of the law, rules and regulations by "Representing" a seller or buyer of a property if you are not properly licensed. However, you can quite possibly represent yourself and "wholesale" the property. At that point you are not representing anyone but yourself. The key here is if you are "representing" someone else. As a wholesaler you just make the deal between you and the buyer on one end and a separate deal between you and the seller on the other end. If you are interested in wholesaling properties, or even "Bird Dogging" for Investors, you should check out the local real estate investor clubs in this area. You can find many of the clubs on http://www.meetup.com.

Good luck and work your deals carefully!

Emmanuel J. Scanlan
PS Inspection & Property Services LLC
http://www.psinspection.com
214-418-4366 (cell)
TREC License # 7593
International Code Council, Residential Combination Inspector #5247015-R5 (Electrical, Mechanical, Plumbing and Building)
Texas Residential Construction Commission, Third Party Warranty Inspector #1593
Texas Residential Construction Commission, Inspector, County Inspection Program
Texas Department Of Insurance, VIP Inspector # 08507061016
Hayman Residential Engineering Services, Field Technician
CMC Energy - Certified Energy Auditor

Knowledge is power, but sharing knowledge brings peace!!
Web Reference:  http://www.psinspection.com
0 votes
Patrick Jack…, Agent, McKinney, TX
Thu Feb 19, 2009
Only licensed agents/brokers may represent an investor - buyer or seller in a real estate transaction in Texas and receive a commission for the sale of real property.
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Feb 19, 2009
Question :

Is the property single family or commercial ?

Are you listing agent? If you are then a listing / buyers agent

If you have any questions confer with your broker assist , I am unclear all particulars involved.
Web Reference:  http://www.lynn911.com
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