Can husband wholesale and wife be a realtor?

Question

I just got my real estate license in Texas and my husband wants to be a RE wholesaler (does not have a RE license).

Does he have to disclose his wife is a realtor? Reason being he would buy the properties under an LLC in which I/wife/realtor is the managing member of the LLC. However I/wife wont be transacting with the sellers. My husband/wholesaler would then assign the contract to another party/company (wholesale). For some properties I would be the end buyer (keep the property in the LLC) and then flix/flip the property. Remember the managing member of the LLC buying the property is me/wife/realtor.

Are there any husband/wife teams like this? How do yall structure the business?

Lisa Yan · Answer

Thank you all for your kind responses!

Guy Gimenez · Answer

I'm a long-time broker and my wife and I have multiple LLC's. We have been buying homes for 22 years in Texas. It's easy to disclose on the TREC form that I'm a licensee and it never presents a problem for us, but I never go to the appointment wearing my broker hat. My ONLY goal is the buy the property if I can find a way to monetize the deal.

Rich Hupper · Answer

It could be a problem if the information is not disclosed to your clients when your clients are involved in a transaction with your husbands wholesale deals. A Wholesaler doesn't have an agency relationship with the owner of the property. However the salesperson does have an agency relationship with their buyer clients.

Guy Gimenez · Answer

If the contract is in an LLC (or other entity, including a trust where you're a beneficiary) where you (licensee) holds a greater than 10% interest, your husband must disclose because you are in fact one of the buyers.

Brett Deas · Answer

Ask a lawyer!

But from my limited experience and knowledge on this sort of thing, In Colorado you always have to disclose if family is involved in the transaction no matter what. That was the biggest problem for 2022 was people not disclosing this and getting sued.

Bryant Brislin · Answer

You may need to ask an attorney.

Kai Kopsch · Answer

As a RE license, your deals have to be brokered by you're BIC until you reach BIC Eligible. Ask him or her how to structure this in your state if possible.