real estate news WHOLESALE POLICE Posted recently on Facebook, a local investor received a letter from the Kansas Real Estate Commission based on his advertising of a house that he did not own on Craigslist.
4) Real Estate License Law states that you cannot earn money for selling real property for a 3rd party unless you are a real estate agent. 5) Real Estate License Law applies to all parties in the state, not just real estate agents.
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Do you have ownership of the property?
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Can you prove you have ownership?
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Do you have a written agreement to advertise the property? Can we see it?
We strongly urge anyone who is wholesaling property, that if you are double closing or assigning your position in a contract, that you go out and get a good solid education on how to go about doing these transactions. A few thousand in training costs up front is way cheaper than attorney fees and several $1000 in fines later.
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Who authorized you to advertise on Craigslist?
NOTICE OF INTENT TO SELL
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What other properties are you advertising?
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How many other properties in Kansas have you sold.
The commission was asking things like:
So as a reminder. 1) If you don’t own a property, you can’t market it for sale. 2) If you do own a contract, you may market that contract for sale, but consult with your attorney to verify how to best go about this. 3) The Kansas and Missouri Real Estate Commissions have been policing our industry a lot over the past few months. If you receive a letter like this, PLEASE, consult with a competent attorney to help you respond.
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REMINDER: if you are purchasing real estate to sell in Missouri that you may need to record a Notice of Intent to Sell at least 45 days prior to the closing of your sale. Please check with your title company to learn more about the Notice of Intent to sell when you next purchase a home. They can be recorded at the same time as your other purchase documents by your title company for a small fee. This notice puts the world on notice that you will be selling the home. Some title companies will close your transaction without these being recorded and some will not. Your best course of action is to be proactive when you buy rather than reactive when you sell. Grow Your Business
