When responding to the initial post, I confined myself to a narrow interpretation of what was being asked for. Since compensation is not part of what was being asked, I did not address it. But you are correct that once having obtained the license, it becomes more complex, which is one reason why I hear many seasoned investors counseling that its better not to get a license (of course none of the nonsense applies if buying and selling in a state where one has no license). I had pursued a lic. at one time until I came across the “rules” and decided it would actually hinder my goals rather than help.
I am a licensed agent in South Florida. I do not wish to practice traditional real estate and had my license hung with a friend that was a broker just so I could buy my own home. My license is now inactive due to my broker moving out of state. If I want to start investing with a friend of mine, am I required to activate and hang my license somewhere else or can I invest under my own LLC without activating my licenes and acting as a real estate agent?
You do not need a license to buy and sell your own properties. None of the other homeowners in FL required one to do their either. Its only when you are handling other people’s money or transactions on their behalf that you need to be licensed.
Also, in MOST locales, you would be required to disclose the fact you are licensed, either active or inactive, in writing, usually in your purchase offer. And of course, on inactive status, you would not be able to be compensated for any RE related activity.
However, if they let the license lapse, they would not be required to disclose. And the question posed was whether or not a license was needed and the answer to that is NO.
In two states that I know for certain, they would be required to disclose they are licensed, even if on inactive status…such as non-renewed, or the Broker closing shop, and most other reasons except actual revocation by the licensing authority. I can not speak on Florida law in particular.
You are correct that he is not required to activate his license to buy and sell for himself. Depending on local law, he may need to be very careful in a partnership situation. The key is “compensation” for duties requiring a RE license, as defined by local license laws.