Using Agents - Posted by Ronnie

Real Estate Investing Real Estate Law
1

Posted by Ronnie (Tx) on December 09, 2005 at 17:17:25:

Thanks so much!

2

Using Agents - Posted by Ronnie

Posted by Ronnie on December 08, 2005 at 13:47:39:

I am starting a business in which I will need to hire a licensed agent for a couple of reasons.

My question is does my corporation need to have a license to employ agents? My service is basically a contact network and I would never claim to be an agent, but I need an agent in order to service my clients more effectively.

I know some businesses need licenses in order to operate. Does a business that employs agents need a license aswell?

3

Re: Using Agents - Posted by John

Posted by John on December 08, 2005 at 21:58:44:

I am not an attorney, but was a former RE agent years ago. These comments should not be confused with facts.

I believe you may need to hire an agent with a brokers license. A licensed agent can only work on behalf of a licensed broker. They only represent the broker in the RE treansaction. On the other hand a licensed broker can represent another broker or himself in the transaction. The state law governs this. Depending on where you operate, you may need someone licensed in multiple states.
In PA (unless it has changed) you could hire a broker for your company that would be the broker of record. That broker would manage all RE transactions. Licensed agents could also be hired to work under the supervision of the broker.

4

Re: Using Agents - Posted by Ronnie (Tx)

Posted by Ronnie (Tx) on December 09, 2005 at 06:27:46:

So you are telling me that I could hire a broker and they would hire
agents all under my company, or would I need to inlist their services as
independent contractors?

(that response was very helpful)

5

Re: Using Agents - Posted by John

Posted by John on December 09, 2005 at 13:54:13:

I am not sure about TX laws but when I was an agent In PA that was how it worked. There were rules and regs about how much control you could have over the broker. This has to do with your being involved in the transaction. You could have only limited control of broker and agents.

This is how some Large RE companies are formed. The president of Company set goals but the broker handles the details.
Check with your local laws but I bet it would be the same.