• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

New Real Estate Business

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

J

jbankson

Guest
I am in CA. I am starting a new business. This business address' the needs of the realtor during the transaction period. Some offices have transaction coordinators to handle the transaction for them, however many realtors do not have this service available to them. My business would provide this service. My ? is... 1. Is this legal, to perform duites of the transaction by an independent third party? and 2. What would the liabilty of my company be? If you do not have these anwers but know of a source where I might find them I would be grateful. Thank You.
 


HomeGuru

Senior Member
Explain the duties. If it is just office related work no problem. But if it is showing property, meeeting vendors such as surveyor, home inspector etc., talking about the paperwork ie. listing agreement, contract, seller disclosure issues etc., handling mortgage financing etc. handling deposit checks for earnest money, rental, security deposits etc., there would be activities or a hint thereof of practicing real estate without a license.
 
J

jbankson

Guest
home guru thx for the response. i am a licensed realtor in CA.(not a broker). The duties are the mostly the multitude of disclosure documents that must be signed between the parties. I know that offices hire transaction coordnators (that are not licensed) to perform this duty (so the agent can get back to selling houses). i have contacted the DRE and they told me as long as I did not advertise that i was an agent it would be fine... but the law is grey in this area (to my findings so far) and i want to be sure before i get started on this venture. My company would be acting on behalf of the agent. I plan to have a contract with each realtor who uses the service. We would only be getting required documents signed by the parties. well... what do you think?
 

HomeGuru

Senior Member
I forsee agency problems because you are already licensed. In addition there are other problems that may arise including but not limited to: what happens when the person(s) ask a question pertaining to the documentation that they are signing?
 
J

jbankson

Guest
Home Guru- Here is specifically what I had in mind. 1. I do not plan on using my license in the legal scope of this business.
At the request of an agent forward on the proper disclosure documents i.e TDS, Smoke Detector, etc. to their client. Recieve back the documents fully executed and return to the agent. Now, if the client had a ? regarding the documents it would have to be the agent who answered right? So the real ? is... is contacting a client and asking them to fill out these documents acting as an agent in the scope of the transaction. I have read sections 10130,10131 and 10137 of the CA business code and I am still unclear where the "duites" of the agent/broker lie in as far as the filling out of these documents. It is not "negotiating the sale",as far as I can tell and I am not "handling any $" of the clients. Do you have any insight to this?
Thanks.
 
J

jbankson

Guest
Home Guru- If you do not know the answer to this, do you know of any further research material I could get my hands on?
 

HomeGuru

Senior Member
My opinion is that you indeed would be acting in the capacity of an agent.

In addition to the CA Business Code, you need to read the regulatory and administrative rules governing licensed real estate agents and brokers.

Contact your State agencies.
 
J

jbankson

Guest
Home Guru- I found a company called ReMerge.com that is doing exactly what I have in mind in CA. Now, they state they are able to work with multiple brokers by either having the broker be thier Agent Client or as the Co-Op Agent. I am not fimilar with either one of these terms. Do you have any insight to this?

Thx
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top