Wholesale Police

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.

The commission was asking things like:

• Do you have ownership of the property?

• Can you prove you have ownership?

• Do you have a written agreement to advertise the property? Can we see it?

• Who authorized you to advertise on Craigslist?

• What other properties are you advertising?

• How many other properties in Kansas have you sold.

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.

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.

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.