Posted by Frank Chin on May 17, 2004 at 17:37:06:
GP:
You’re probably right.
If so, parargraph “b” should include “unless the sales are conducted through a licensed RE broker”, or something similar.
I recall checking the statute, and it exempts attornies in their performance of duties, but not an individual using a broker.
Frank Chin
Frank Chin
Needing a Real Estate License - Posted by Mick Peabody
Posted by Mick Peabody on May 12, 2004 at 16:47:07:
I recently was contacted by the Wisconsin Department of Licensing and told that we needed to be a Licensed Broker to do business. They said anyone who sells 5 properties in 1 year or 10 in 5 years needs to be licensed. All the Guru’s say you don’t need a license. What is the truth?
Mick
Re: Needing a Real Estate License - Posted by Frank Chin
Posted by Frank Chin on May 13, 2004 at 02:19:34:
Mike:
You have to go by the local laws. According to information on the Wisconsin Department of Licensing website:
Description:
A real estate broker is an individual who:
a. For another, and for commission, money or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange, purchase or rental of an interest or estate in real estate;
b. Is engaged wholly or in part in the business of selling real estate to the extent that a pattern of real estate sales is established, whether or not such real estate is owned by such person. Five sales in one year or 10 sales in 5 years is presumptive evidence of a pattern of sales.
c. For another and for commission, money or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange, purchase or rental of any business, its goodwill, inventory, fixtures or an interest therein; or
d. Is engaged wholly or in part in the business of selling business opportunities or goodwill of an existing business or is engaged wholly or in part in the business of buying and selling, exchanging or renting of any business, its goodwill, inventory, fixtures or an interest therein.
e. For another, and for commission, money or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange or purchase of a time share.
f. Is engaged wholly or in part in the business of selling time shares to the extent that a pattern of sales is established, whether or not the time shares are owned by such person.
g. For another, and for a commission, money or other thing of value, promotes the sale, exchange, purchase, option, rental or leasing of real estate or business opportunities. This paragraph does not apply to a person who only publishes or disseminates verbatim information provided by another person.
For exceptions to the above, see s. 452.01(3), Wis. Stats.
No person may engage in or follow the business or occupation of, or advertise or hold himself or herself out as, or act temporarily or otherwise as a broker without a Wisconsin real estate brokers license.
The purpose of licensure is to ensure that only qualified people handle real estate transactions and supervise licensed salespersons in Wisconsin. It ensures proper listing, selling, buying, exchanging, leasing or renting of real property or a business opportunity.
According to paragraph “b”, you’ll need a license whether you own the property or not.
Frank Chin
Wiggle room? - Posted by John Merchant
Posted by John Merchant on May 13, 2004 at 18:13:35:
While the WI rules seem clear, I see a possible loophole, that might allow one to buy many more than 5 per year, etc.: LLC A buys 5, then LLC B buys 5, etc.
Under all states’ laws, an LLC, or corp, is a legal “person”.
To brief it thoroughly, the case annotations under those WI stats should be studied. To do that, it’d be necessary to either subscribe to Lexis or use any law library to look at the WI Statutes Annotated.
Re: Wiggle room? - Posted by Bob
Posted by Bob on May 29, 2004 at 17:13:37:
What about (a)? If I am a corporate employee, who receives a salary, health ins., etc, it could be argued that I have both received something of value (though not, specifically, from the sale itself) and negotiated for another (the corp), requiring a license. On the other hand, I’ve been told that employees authorized to act for an entity are always considered principals. Which is right?
Re: Wiggle room? - Posted by Frank Chin
Posted by Frank Chin on May 13, 2004 at 20:01:16:
John:
I was thinking about it.
What if someone spent a whole lifetime accumulating hundreds of properties, then wind up in a nursing home with Alzheimers. Of course, he’ll have to start selling, and when he does, it’ll be more than five a year.
But wait!!
Does the poor guy has to get a brokers license first??
Frank Chin
Re: Wiggle room? - Posted by John Merchant
Posted by John Merchant on May 30, 2004 at 24:00:28:
Technically, yes, a corp or LLC has to act through someone, and that person is either an E’ee or an agent.
However, if YOUR one-man LLC is the buyer and seller of a MH, who’s going to complain?
“I’ve been told that an employee acting for an entity is a principal”…is dead wrong.
That person who’s acting for the corp is either an E’ee or agent (legal distinction depends on how much control over the person the corp has) and the only principal is the corp itself.
But, again, if it’s a one-man corp., who’s gonna complain?
Not if he uses an agent - Posted by GP in WA
Posted by GP in WA on May 17, 2004 at 12:59:40:
If he lists with an agent, I doubt it. That’s my common sense.