can a real estate broker sell there own house as the agent?

Asked by Odessa, 75002 Mon Oct 4, 2010

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31
Patrick Jackson’s answer
Patrick Jack…, Agent, McKinney, TX
Mon Oct 4, 2010
Yes they can. As mentioned already, some brokerages have internal policies that restrict this. A REALTOR must disclose that they are an agent or broker.

Code of Ethics and Standards of Practice
of the National Association of REALTORS®

Article 4
REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner's agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative.

Agents or brokers typically include notice that they are an agent or broker in the contract. This fulfills the requirement to make notification in writing.

From: http://www.texasrealestate.com/web/4/43/index.cfm
2 votes
what if the real estate agent is NOT a REALTOR.
What law governs them in disclosing that they are the owner or part owner of the listing they are selling.? They are using an LLC investment company name as the seller.
Flag Wed May 21, 2014
Phillip Madi…, Agent, Dallas, TX
Tue Jun 10, 2014
As long as they disclose they are a Realtor or Broker completely.
1 vote
Donna Pekarek, Agent, Allen, TX
Thu May 15, 2014
A real estate licensed agent can sell his house himself. Contractually, it must be disclosed in the contract and the MLS that the seller is also the listing agent. You should review all disclosures submitted carefully, as you would in any other sale. Good question.
1 vote
Linda Lorenzo, Agent, McKinney, TX
Sun Dec 26, 2010
@powerbroker - one should always disclose - as an agent even inactive you have specialized knowledge and could leave yourself open to lawsuits down the road if a buyer is unaware of your background.
1 vote
Powerbroker13, , Virginia
Sun Dec 26, 2010
@Linda, well what if the inactive agent just wants to sell it as for sale by owner. Is disclosure still required?
1 vote
yes
Flag Fri Aug 19, 2016
Brandon Cirel, Agent, Pelham, AL
Mon Apr 25, 2016
In Alabama, the regulations are pretty simple (assuming you are a licensed real estate salesperson).
YOU MUST DISCLOSE IN WRITING THAT YOU ARE A LICENSED SALESPERSON. This requirement is the same whether you are active or inactive.
SECONDLY, if you are inactive, then your are essentially FSBO, nothing is required except the disclosure.
If you are active, you must comply with the requirements of your broker, as they are the ones "responsible" for your listing.

This is what the attorney told me two days ago at the commission.
Also, these requirements are for an agent owner as well as the agent's immediate family.

Hope this helps.
0 votes
Richardkinder, Home Buyer, Allen, TX
Sun Mar 27, 2016
Yes they can sell "THEIR" own house !
0 votes
Benni.gholami, Both Buyer And Seller, Dallas, TX
Mon Dec 29, 2014
Yes of course they can and they can help themselves save a lot of costs as well while at it. If they have their own house for sale, they already know the procedures and can complete the transaction without much hassle or by needing any help from any external parties. There have been situations in which homeowners do not even consult any estate agent to hire their services. However, they need to visit to and fro the housing authority to settle any outstanding transactions.
0 votes
so If I'm a realtor and selling my own home as listing agent,do I still have to pay the commission to real estate firm I work for..?or I can just pay to the buyers agent and no feed to me as a listing agent?
Flag Mon Apr 20, 2015
Michael Moen, Agent, Bozeman, MT
Mon May 19, 2014
Under full disclosure, Yes they can.
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Mon May 19, 2014
Yes they can by clearly disclosing it.

Avoids headaches later ;-))
Web Reference:  http://www.ruthandperry.com
0 votes
Scott Johnson, Agent, Richardson, TX
Mon May 19, 2014
As long as they disclose that they are a broker and a principal they can.

Scott & Amie Johnson
FireBoss Realty
469-269-0911

http://www.FireBossRealty.com
http://www.NortheastDFWHomes.com - Property Search Site
http://www.FireBossRealtyAroundTown.com - Blog
http://www.northeastdfwhomes.com/cp/mobile-app/ - FREE Mobile App
Web Reference:  http://FireBossRealty.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Mon May 19, 2014
It depends.
Yes in many ways.
Some brokerages do not allow their agents to sell their own home and force them to list it with another agent.

Is there more to the question?
0 votes
Bruce Lynn, Agent, Coppell, TX
Mon May 19, 2014
It depends.
Yes in many ways.
Some brokerages do not allow their agents to sell their own home and force them to list it with another agent.

Is there more to the question?
0 votes
Bill Yearby, Agent, Allen, TX
Sat Apr 6, 2013
Yes. Disclose, Disclose, Disclose. Yes it has to be disclosed in writing. Disclose early on in the transaction. Put it in special provisions in the contract. As a principle to the contract you should write it in that section. You are not practicing law by doing so as you are either the buying or seller party to said transaction.

Bill Yearby
Town North Realtors
Allen, TX 75002
0 votes
Darrell Self, Agent, Allen, TX
Tue Mar 8, 2011
Yes the agent can sell their own home. They must disclose in the listing in MLS that the seller is an agent.owner.
Web Reference:  http://dmdrealtydfw.com
0 votes
Myra Gouger, Agent, Las Vegas, NV
Sun Dec 26, 2010
It depends on your state rules and your brokerage rules. Some brokers will not agents to sell their own home.
0 votes
Linda Lorenzo, Agent, McKinney, TX
Sun Dec 26, 2010
@powerbroker 13 - if you are an inactive agent you would have to list with a real estate company but would still want to disclose that you are an inacftive agent.
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Sun Dec 26, 2010
An owner can sell his own house.

However, when you are a Reator or Agent you have to disclose it.

Happy Holidays.
Perry
Web Reference:  http://www.ruthandperry.com
0 votes
Powerbroker13, , Virginia
Sun Dec 26, 2010
What about if the agent's license is inactive?
0 votes
Ronda Allen, Agent, Plano, TX
Mon Oct 18, 2010
Yes, and there is a field in the North Texas MLS for them to identify that the house is currently owned by a licensed agent.
Ronda Allen, C.P.M., Realtor
0 votes
Betina Forem…, Agent, Austin, TX
Fri Oct 8, 2010
The short answer is yes. Althogh some Brokers will require their agents to have an associate list their personal home. Also if a Realtor lists their own home for sale, they must put that in the listing notes so a potential buyer knows it is owned by the Realtor.

Sincerely,
Betina
0 votes
Lyle Wolf, Agent, Morristown, NJ
Tue Oct 5, 2010
In general they can with full disclosure, however, some real estate companies have policies of their own that do not allow it.
0 votes
Tina Crisp, Agent, Frisco, TX
Tue Oct 5, 2010
Yes, Real Estate agents can sell their own homes. I would suggest if interested in buying a home that is agent owned to have your own representation to make sure things are handled professionally and that the agent whom owns the home is held accountable for doing the right thing.
I have encountered two situations recently where the agent had her home over priced by $25,000 more than appraised and another where they required the buyer to only use their lender if they wanted to purchase the home. There should not be any requirements other than a market price and a complete transaction as would occur with any other home. Make sure any paper work contains the disclosure owner/agent.
Do your homework and you could get a great home!
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Mon Oct 4, 2010
Yes they can, but they have to be very careful doing it. It's easy to get into the gray areas when this is done. Many brokerages do not allow agents to sell their own homes, they have another agent in the office list it to minimize those gray areas.
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Oct 4, 2010
Yes an agent can sell their own property. Why many agents become licensed in Texas save on real estate commissions .

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Dane Hahn, , 34223
Mon Oct 4, 2010
Yes Odessa, a broker can sell his own house--just like you can sell your own home. The difference is, a broker has more marketing muscle and can do a really good job in the marketing effort, probably better than you can, and so a broker may sell his house quicker than you would be able to.

As my brethern realtors have been clear to tell you, a broker must disclose he is a broker and it's his house, or if he has an interest in any house that he has for sale. He is also required to tell the world if he (or she) is an investor in the property that is for sale, maybe the realtor and a builder have made a partnership to build and market homes, that too needs to be disclosed to the world when the properties are advertised.

The law basically says the public may be too gullible or even too stupid to be able to deal with a realtor who has a house for sale, unless the realtor tells them it's his house; therefore realtors must disclose their ownership positions in any and all homes they are offering.

Dane Hahn
0 votes
Linda Lorenzo, Agent, McKinney, TX
Mon Oct 4, 2010
As mentioned yes with full disclosure. Many times a broker will have someone else in their office list the property, but it still must be fully disclosed. You would most definitely want to get your own Realtor to represent you, so that you will be protected and will know if you are paying the right amount.
0 votes
Willy Olsen, , Claremont, CA
Mon Oct 4, 2010
Yes, but it must be disclosed that the seller is a broker/agent.
0 votes
but suppose a salesperson wants to sell without ad by owner, what can he write?
1. that he is a salesperson
2. his name and phone number
3.brokers name and number
4. his brokerage name
Flag Sun Nov 29, 2015
Jennifer Her…, Agent, Latham, NY
Mon Oct 4, 2010
Dear Odessa ~
Yes, indeed, we can as long as it is fully disclosed that "Seller is also a licensed real estate agent/broker" in the formal listing documentation and reiterated to all potential buyers. I am, in fact, getting ready myself to list some of my own property!

It is a fairly common practice for licensed agents and brokers to handle their own transactions (again, full disclosure necessary in order to comply with Law.) Although some brokers have their own rules regarding their agents doing so when they are new to the office, this "holding pattern" is eventually lifted so agents can proceed on behalf of themselves after a predetermined amount of time. This is to ensure that the agent isn't "using" the broker's office merely for personal gain.

If I can be of any more help, please visit my website. The address is provided below.

I hope this helps answer your inquiry. Have a wonderful day!
Web Reference:  http://www.JenniferHerbs.com
0 votes
Don Tepper, Agent, Burke, VA
Mon Oct 4, 2010
Yes, so long as it's disclosed. In fact, it's done fairly frequently. And, though I wouldn't advise it, it can make financial sense for someone to become licensed simply to sell their own home and save that portion of the commission.

Hope that helps.
0 votes
Eric Brooks, Agent, Chevy Chase, MD
Mon Oct 4, 2010
Yes, it is all about disclosure. As an agent, you must disclose that you are also the owner of the property to any potential buyer - this is normally done in the disclosure packet but can also be added to the MRIS.
0 votes
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