Posted by DaveD (WI) on February 04, 2004 at 18:19:37:
Are you referring to the zipper itself or what is er, uhm, behind the door? Never mind. I don’t think you need one for the “trade”, but NY may be more progressive than WI!
Not more than 5 RE sales allowed in my state!Crazy - Posted by Sam
Posted by Sam on February 03, 2004 at 15:51:12:
I am studying for Real Estate license and I read the real estate law in Michigan and it says
"According to section 2501(d) Anyone who engages in the sale of real estate as a principle vocation must be alicensed broker.
Engaging in more thamn 5 real estate sales in any 12 months is required to have broker lisence. (An unlesneced person can sell up to 5 properties if he owns them during 12 months period)
So in michigan you are dead No more than 5 re delas.
???
Where does it say 5? - Posted by Bill Bronchick
Posted by Bill Bronchick on February 04, 2004 at 18:25:33:
I was confused, here, Sam, I was referring to MN law, which has a 5 deal/year limit.
I could find nothing in MI’s statute that refers to 5 deals. Where did you see that?
It is not about me about you!!! - Posted by Sam
Posted by Sam on February 04, 2004 at 16:28:50:
When you dont have a solution to my valid legal point all of you try to act like there is nothing like that. I am pretty sure this law has to be there in many other states that you never knew and until a smart defendant try to prove at the court “that your contract is void based on the fact the business you were doing is against the law because this is your 19th flip without a broker lisence.” It is rare but still possible…In life most of the time not knowing the truth is much better…I agree…
Re: Not more than 5 RE sales allowed - Posted by Sean
Posted by Sean on February 04, 2004 at 15:05:21:
I’d like to see who, if anyone, that’s been prosecuted under this law… I just don’t see how this rule could ever stand up in the Courts…
The question is Why Gurus Don’t warn students? - Posted by Sam
Posted by Sam on February 04, 2004 at 07:47:53:
The question is Why Gurus Don’t warn students?
Not crazy at all… - Posted by Jim Fox
Posted by Jim Fox on February 04, 2004 at 07:06:28:
Technically, a broker’s license is a license to practice law, just like a lawyer, with some restrictions. The most obvious being the practice is limited to real estate law. Guess who make laws… that’s right, lawyers. In whose favor do they make them… that’s right, their own. So if you attempt to practice without a license (broker’s, doctor’s, plumber’s, etc.) you get to spend $10k-$20k minimum having a real lawyer defend you. Now that all real estate transactions are computerized violators are very easily found. Any broker who becomes aware of your activity need only send an email to your state’s licensing authority.
I suggest you contact a real lawyer and get a written legal opinion regarding your exposure and alternatives. One might be a builder/developer?s license, another might be corporations/trusts, another might be (duh!) getting your broker’s license.
Re: Not more than 5 RE sales - Posted by Nate(DC)
Posted by Nate(DC) on February 04, 2004 at 01:03:34:
I agree with Bob…go out there, do your 5 deals, then start looking for an alternative… I’m guessing you haven’t even done 1 yet!!
NT
Multiple entities? - Posted by William Bronchick
Posted by William Bronchick on February 03, 2004 at 20:18:12:
I read the MI law and it does not exactly say 5 deals. It says anyone who regularly engages in the business requires a license, and that 5 deals creates a presumption. So, if you used multiple entities, would that get you around it? Technically, not, since each business could do 2 deals/year and still be “in the business”. The good news is that MI does not charge a high franchise tax on corporate entities, so having 3 or 4 corps or LLCs is economically feasible.
You won’t get arrested if you do 6 deals in a year. I’m sure you’d get a letter from the state licensing authority with an inquiry if they thought you were breaking the rules. They would simply ask that you stop, or they could seek a court injunction against you. Or, they could hand it over to the AG, who could file a similar suit. At that point, you could consider using an agent. For argument’s sake, let’s say you used 3 entities and 5 deals/year in each. I think you could afford an agent if you flipped 15 houses/year.
“Officer Bob” raises a valid point, which is, “who’s counting”? Talk with some other investors and get a reality check about how strictly this rule is enforced.
Re: Not more than 5 RE sales allowed in my state! - Posted by Officer Bob
Posted by Officer Bob on February 03, 2004 at 17:27:49:
And who is counting these deals? The Real Estate Police? Spend your time worrying about finding the deals. Don’t sweat nonsense like this and put unnecessary obstacles in your path.
Re: Not more than 5 RE sales… - Posted by BC
Posted by BC on February 03, 2004 at 17:00:50:
What I think they mean is not more than 5 sales without the help of a broker/agent. So you could sell as many properties as you want as long as you use an agent. Why not just become and agent and not worry about this rule?
Re: Not more than 5 RE sales - Posted by Terry (Houston)
Posted by Terry (Houston) on February 03, 2004 at 16:47:27:
Well then, put each house into a trust. That way the trust is selling the houses not you. What about an LLC, do 5 in one then set up another one. Just a thought.
Terry
Re: Not more than 5 RE sales allowed - Posted by E.Eka
Posted by E.Eka on February 03, 2004 at 16:27:41:
Michigan is another one of those “liberal” states like Washington, Washington, DC (not a state) et al. who try to protect private interest. You can’t tell me that there weren’t a bunch of lobbyist from the realtor;s board of some sort.
With this diatribe being said,
I don’t think that can stop you from assigning or L/O…
here it is… http://www.kcha.net/re_red_book.htm - Posted by Sam
Posted by Sam on February 04, 2004 at 22:34:47:
History: 1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.
R 339.22319 Licensure required for owner of real estate engaging in
sale as principal vocation; acts constituting principal vocation; sale of
real estate owned by broker or associate broker; licensee to reveal
ownership or interest when selling property licensee owns or has
interest in.
Rule 319. (1) Licensure as a real estate broker is required of an owner of
real estate who engages in the sale of real estate as a principal
vocation, unless the owner engages the services of a real estate broker.
Acts constituting a principal vocation include any of the following:
(a) Engaging in more than 5 real estate sales in any 12-month period.
(b) Holding one’s self out to the public as being principally engaged in
the sale of real estate.
(c) Devoting over 50% of one’s working time, or more than 15 hours per
week in any 6-month period, to the sale of real estate.
(2) A sale of real estate by a real estate salesperson, other than his or
her principal residence, shall be deemed to be done as a principal
vocation of the salesperson and the sale shall be through a licensed
broker.
(3) Sales of real estate owned by, or under option to, a broker or
associate broker are subject to the provisions of the code and these
rules.
Here is one Court Cases though not directly rel - Posted by Sam
Posted by Sam on February 04, 2004 at 15:31:01:
http://www.courts.michigan.gov/supremecourt/Clerk/Opinions-02-03/timmis-120035.PDF
Student is a buzzword. - Posted by Brent_IL
Posted by Brent_IL on February 04, 2004 at 12:48:10:
This isn’t long-distance learning. All you’ve done is to buy a course.
There are some state-specific courses, but most are written so the information applies in all states. Larger market.
Worry about the sixth deal when you get to it.
Why should they? - Posted by DaveD (WI)
Posted by DaveD (WI) on February 04, 2004 at 08:48:39:
I suppose it’s because less than one percent of those who listen to advice ever get around to buying or selling one property ever, let alone 5 per year. So why bring up a problem which will never arise? For those who reach that threshold (and there isn’t any agreement here on this anyway) I’m sure they will become savvy enough to “handle” the non-existant “problem.”
Re: Not more than 5 RE sales allowed in my state! - Posted by rm
Posted by rm on February 04, 2004 at 06:54:34:
Due to cuts in the state budget, this enforcement is now under the jurisdiction of the mattress police.
In Michigan Agent can only sell his home? - Posted by Sam
Posted by Sam on February 03, 2004 at 22:40:02:
All other homes should go through the broker. Broker will kick my back if I talk him to do subject 2 and also there is no money to share in a Lease to purchase deal.