Being the owner of a real estate company and also a realtor..

[Clifford Sumner]

Hello again, so...as is stated somewhere here on the forum, no question is a dumb question.

My sister and I plan to incorporate soon and she is one test away from have her real estate license. At some point some where I thought I read or heard something about there being certain legalities involved in being both the owner of a real estate company that buys and sells homes and also a real estate agent.

Is there any truth to that or anything that we should know?

Thanks a ton in advance for any help :)

[Sean Cole]

Depends on your state.

In Ohio, I have to disclose in writing to all potential buyers and sellers that I'm a licensed real estate agent representing myself.  My business cards are 2-sided, with my REALTOR information on 1 side and my wholesaling company on another (I have a 2nd version with my "we buy houses" company on 1 side and REALTOR info on the other).

Being licensed is a challenge when working directly with consumer sellers (probate, absentee, etc.).  I'm required by our Code of Ethics to tell the seller what my opinion of the market value of their house is.  Now, if I turn around and mark it up $5k (or $30k+ as some folks do that post here and are licensed in Ohio), how can I have satisfied my Ethical Requirements?