Posted by William Bronchick on March 05, 2004 at 08:46:46:
It wouldn’t be a securities violation, but it might be an ethics violation. Agents must be careful what kind of representations they make about return on investment. If in doubt, run it by the local board or the state licensing authority.
Does this “cross the line?” - Posted by Alexander Manuel
Posted by Alexander Manuel on March 04, 2004 at 24:57:56:
If a licensed Realtor is attempting to sell Real Estate on the merits of its potential Return on Investment, doesn’t that cross into the realm of the SEC and require a different license?
As an example, suppose a Realtor is selling properties at a new development and making claims such as “This can probably increase 30% in value” or “You can make 100% return on your money.” It would appear to me like this Realtor is no longer attempting to sell Real Estate but rather selling investments to the public without the benefit of a prospectus.
What type of laws regulate this kind of activity?
Thanks in advance,
Alexander Manuel