Legal Limits of Advertising Real Estate Without a License

**djdemers** · 03-12-2011, 11:01 AM

Hello,
I am licensed in MA, but would like to expand a real estate services business nationally, hopefully without needing 50 licenses.

While researching a competitor business, I saw in their user agreement that they are strictly an advertising service, intended to help people who don't want to contract with a licensed broker, and also that their fees are strictly flat-fee instead of a % of sales.

1) They feature properties on the MLS, which does require a contract. It appears that they network with licensed agents who host the listings. In this case, what are the legal limits of services offered when the person / entity prospecting is not licensed?
2) Is it legal to charge a percentage of the sale price for marketing services without a license? If so, how about a "flat fee" agreed upon beforehand based on a reasonable sales price?

I want to make sure my efforts are legal (and the competitor's efforts for that matter). Thanks!

**Greg** · 03-17-2011, 05:22 AM

You must not be taking this business venture very seriously if you want free legal advice from a forum about how to set up your business. Talk to a lawyer.

**LondonHomes** · 03-17-2011, 06:45 AM

On the other hand if your are looking for free real estate advice is be a great forum. I would think that if you are developing an advertising platform then your not restricted by real estate laws. I think that the trick would be who is going to be placing the ads on your site, if you can get the agents to do it then you should be covered.

But I would also recommend running any plan by your real estate lawyer so you don't cross any lines.

**MikeAustin** · 03-18-2011, 11:00 AM

I suggest you see a lawyer to better help you with this.

Fhil F.
Social Media Manager
on behalf of Mike Austin

**jumpingspidermedia** · 03-18-2011, 04:19 PM

I also would advice you to see a lawyer,to have a better explanation!

**Carla Hailey** · 04-13-2011, 08:56 PM

You should hire a lawyer for a legal actions for this things. Never take it to your shoulder cause you are not that broad at this.

**rduncan610** · 05-01-2011, 04:36 AM

Yes, a lawyer can help, but hopefully you will not need 50 lawyers. State laws are all different on real estate licensing.

I've found that regulatory consultants have a been grasp of nationwide issues in the mortgage area.

Richard Duncan