Posted by Bmeesh on January 20, 2003 at 06:12:40:
I am currently taking the RE course in Florida and you must disclose this to any potential customer. Turn it into a positive…what can you do for them that someone without a license can’t do…just a thought.
RE License Disclosure - Posted by Dean-TX
Posted by Dean-TX on January 18, 2003 at 09:31:35:
Newbie Question: I made the decision that I wanted to get into real estate investing. I figured that in addition to reading the REI books and reading the posts on this site, which are great by the way, I would take some real estate courses just for the knowledge, which I did. When I finished my courses I thought since I went through the time and $$ to take the courses, I might as well take the state test, which I did. I passed the test. In Texas you have to have a Sponsoring Broker to activate your RE license. I have no intention on doing this. So therefore my question is this. Since I have not, nor do I ever plan on, seeking a broker and becoming an “Active” RE salesman, am I now governed by the discolosure rules? Do I have to tell future buyers / sellers that I am I licensed RE saleperson even though my license has always been “inactive”?
Thank You
Why NOT disclose? - Posted by John Merchant
Posted by John Merchant on January 18, 2003 at 18:25:37:
Why wouldn’t you disclose? What’s to lose? Always safer to disclose everything, even more than is required, even defects in property that you know are open, obvious, etc.
That way, you leave no doors through which they can come back and bite you later.
Go have a look at Joe Kaiser’s “World’s Greatest Document”, I believe. It’s a waiver doc signed by the other side waiving everything, in great detail, and leaves no openings or holes that can later be used to beat you over the head.
Just do archive search for Joe Kaiser and you’ll find it.
Re: RE License Disclosure - Posted by Travis (Dallas)
Posted by Travis (Dallas) on January 18, 2003 at 09:46:08:
Sounds like you have a license, even though it is currently inactive…I think they would say that you would need to disclose this.
Why don’t you activate it and take advantage of your hard work?
Good luck,
Travis
Re: Why NOT disclose? - Posted by Dean-TX
Posted by Dean-TX on January 18, 2003 at 20:57:34:
I agree with the fact that disclosure eliminates problems down the road. My concern was that I have read some posts that say one of the disadvantages to having a RE license is you have to disclose this to the seller/buyer. Why is this bad? Does the seller/buyer feel like he’s being screwed because he is dealing with a “RE Agent” as apposed to an independent investor?
Re: RE License Disclosure - Posted by Rusty
Posted by Rusty on January 18, 2003 at 15:06:42:
I agree! As a licensed, active agent in California, our rule of thumb is “when in doubt, write it out!” I don’t know how things are in TX, but in CA, people like to know what they’re dealing with, especially in a high emotion transaction such as buying or selling a house. Good luck!
Rusty
Do disclose - Posted by Jai DC
Posted by Jai DC on January 21, 2003 at 11:03:34:
Hi Dean-TX,
I posted on this topic a few days ago: http://www.creonline.com/wwwboard/messages/46324.html
The fact that you are obligated to make disclosures, in and of itself, is not a bad thing. My point was that sometimes sellers contact you because they prefer to not deal with agents. In addition, because you are licensed, the seller and your state board will hold you to a higher standard of ethics and you can potentially run into problems if you, for your own personal gain, neglect to inform a seller of the fair market value of his property. And what investor wants to purchase a property at FMV? I’m an agent and a newbie investor, so I’m not saying don’t do it. I am just saying be cautious.
Re: Why NOT disclose? - Posted by Brent_IL
Posted by Brent_IL on January 18, 2003 at 21:33:25:
When I was licensed, I’d tell the sellers that I never listed a house for sale, or tried to sell a house I didn’t own, but I kept my license active to use the MLS. That was true. I had a long, thin, rubber stamp with the disclosure info that I would stamp along the margin of the contract after we had come to an agreement. It was never a problem with the sellers.
Re: Why NOT disclose? - Posted by John Merchant
Posted by John Merchant on January 18, 2003 at 21:07:22:
Probably that’s the reasoning, that the seller/buyer might elect either not to deal with us, or would want to arm himself with a pro to represent him.
This issue has never caused me any real problems, although I use a super-cover-all disclosure form like Kaiser’s and I’ve found that usually it draws a laugh from the other guy,because it looks like I’m going way over-board with all the items disclosed…but they usually proceed, without an agent or atty. representing them, and they feel better that I’m so super-old-maid-cautious.
I’ve even thought I might add in my disclosure list something like this: Not only am I a RE Broker and experienced retired attorney, I’m also smarter than you, and making every effort to take advantage of my superior skill and knowledge and you are therefore warned that you need to hire an attorney and/or RE Broker to represent you in this transaction.