Does my brokerage need to be involved? Owner Finance Deal

[Hoa Nguyen]

Hey everyone! Quick question to my agents and brokers out there. I am currently working out an FSBO owner financing deal with an investor friend of mine. As an agent, does my brokerage need to be involved? I've heard of brokerages wanting their cut of their agent's FSBO home purchases, and honestly think that to be ridiculous.

(By the way, if this deal goes through, my LLC would technically be purchasing the property. Not sure if that adds to anything in this scenario)

[Bruce Lynn]

These kinds of deals are ripe for lawsuits....FSBO/Owner Finance/somehow your private LLC is involved even though it is a FSBO and your investor friend is buying it. Sound like brokerage activity to me. E&O insurance likely doesn't cover you or your brokerage if something goes south.

I would say 100% yes....you need to discuss with your broker and follow their directions.