Thread: 2 Questions for a Realtor

Originally Posted by blackbridge

1: Can a person with a real estate sales license do business under a different company name than the broker who holds their license?

Yes. Legal. [EDIT:] I take that back. It depends. You need to provide more information. Can a real estate sales licensed individual work for 2 real estate brokers? Or exactly what is the scenario? Does the same broker own both companies? Are they both real estate firms? You should break that one down with as many details as possible.

2: I know a realtor who splits the commission check with the client after the transaction in order to solicite business. Is this legal/ethical?

If the client is also a licensed real estate agent, then yes, otherwise no. Illegal and of course, unethical.

My scenatio is this. I have an appraisal company and RE investing company under the same name. I am getting a RE agent license and want to start a RE sales company on my own. can i do that and still have a broker hold my license who owner their own different company?

With regard to question 2. So how does a person like that give a discount? Does she just charge less or list it for free and charge full price to buy?

The second question is more for curriousity. The Realtor always tells me it's legal and I somehow doubted it.

Originally Posted by blackbridge

My scenatio is this. I have an appraisal company and RE investing company under the same name. I am getting a RE agent license and want to start a RE sales company on my own. can i do that and still have a broker hold my license who owner their own different company?

It depends. I'm not sure what you mean by, "start a RE sales company on my own." A real estate firm will need a qualifying broker. As a real estate *salesperson* you cannot start a real estate firm on your own. There would need to be a qualifying broker licensed as real estate *broker*. It could, however, be a corporation that you started, and even in your name, but you'd still need someone licensed as real estate broker to be acting as qualifying broker. Following me?

With regard to question 2. So how does a person like that give a discount? Does she just charge less or list it for free and charge full price to buy?

Well, now you're saying something different. Giving commission and giving a discount are two different things. You'd also need to tell me how this "discount" appears on the HUD1, if at all. As for the scenario, it could be any combination of things. You'd have to to look into their business model.

Originally Posted by blackbridge

1: Can a person with a real estate sales license do business under a different company name than the broker who holds their license?

2: I know a realtor who splits the commission check with the client after the transaction in order to solicit business. Is this legal/ethical?

1. Depending on where you are it might be possible to have your license hang under multiple brokers. It depends on your state laws. In NC you can do this.

2. Again it depends on what state you are in. In NC, I can give any amount of my commission to my client, and they don't have to be a licensed agent and it has to be on the HUD statement. There are states where this is illegal unless the client is licensed.

As pointed out, it will depend on your state laws as to how your real estate business is licensed and who can be the broker. In Nevada you have to have a licensed broker of record for a real estate company.

Also in Nevada it is illegal to pay a commission or a referral fee to someone other than a licensed real estate broker. That broker then pays the licensed sales people under them. (For example, if I refer you a client you would pay the referral fee to my broker who would then pay me.) BUT if the client you are referring to is a principal in the transaction - either the buyer or the seller - we can legally discount our commission for that person only. We cannot pay a commission or "finders" fee to anyone else.

For Safe starting of your company i should advice to consult a legal advisor in your area because he/she will be the only person who knows the legal/illegal prons and cons of your area's law.

Thank You