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Updated over 5 years ago on . Most recent reply

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Joshua Stratton
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Legal Question on Compensation for Real Estate Agent

Joshua Stratton
Posted

In need of some advice, pending legal consultation with my attorney.

I am a licensed real estate agent in Michigan, but do not practice as one. I have a friend who lives in Texas & I viewed several properties he's going to buy, took photos, and retrieved info from the seller for him since we are both local and he isn't. Essentially I was just an assistant for him. He found the seller and negotiated the sale himself. 

At closing, he has proposed the title company paying me through a JV Agreement a "marketing" or "administrative" or "consulting" fee for helping him. There isn't a real estate agent involved, and I didn't act as one. Anyone unlicensed could have done what I did.

My question is can I be paid directly without violating licensing law? It is unclear to me as I did not act as a realtor or negotiate the sale, but it could appear that way. I'm unsure if I could be paid directly for providing a service or if my brokerage must take it in. 

Thank you!

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Brian Van Pelt
  • Specialist
  • Owings Mills, MD
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Brian Van Pelt
  • Specialist
  • Owings Mills, MD
Replied

@Joshua Stratton

The fact that you are a licenced realtor elbeit a non practicing, one could argue you were practicing real estate and are being paid a commission. Call a broker in your state with a national Brokerage and have a chat or the RE attny at your local board.

If it Looks like a Duck, Quacks like a Duck ..... It's a Duck

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