Re: Investing w/license. - Posted by JPiper
Posted by JPiper on December 05, 1998 at 10:47:43:
Here is a disclosure that I used to make before I dropped my licenses:
?Buyer hereby discloses, and Seller acknowledges, that Buyer is a licensed real estate broker in the State of__________. Buyer further discloses, and Seller acknowledges, that Buyer is acquiring the property for the purpose of renting and/or resale, that in the event that Buyer resells the property such resale may occur simultaneously with the closing referenced herein between Buyer and Seller, and that said resale may result in a profit to Buyer.?
At times I still make a disclosure similar to this without the licensing part. Depends on whom I?m dealing with and what the deal is.
One thing for sure, if you have a license more disclosure rather than less is good as far as the courts are concerned. You?ll have to attempt to balance the need for disclosure to protect yourself with the risk that too much disclosure will turn your seller away.
The fact that you make this disclosure does not mean that you still can?t be sued, and that you still can?t be accused of taking unfair advantage of someone. While I don?t know of any specific cases, I?m sure the lawyers amongst us can trot a few out that involve an unsophisticated seller and a licensed agent, or for that matter an ?unscrupulous investor?. Such are the times we live in.
However I have found that if you make this disclosure, and briefly go over it with the Seller, they typically aren?t surprised when you make a profit, and aren?t disturbed by it. I wouldn?t flaunt this profit by the way in front of the Seller, or anyone else.
As it pertains to this issue, and to quote Donald Trump, ?Be Paranoid?. By the way, this issue and others are amongst the reasons why I terminated my broker?s licenses.