CA Title Company said I gotta be Licensed??

[Account Closed]

BP'ers!

So I'm trying to find an "investor friendly" title company. So I started calling title companies and the first one said that it's "frowned upon to make any money at all off of a housing transaction unless you are licensed. You can't even list something for rent if you are making so much as a candy bar from the transaction." lol Those were her words exactly. Is it true you have to be licensed in CA in order to do wholesaling?! Is anyone doing deals in California that isn't a licensed realtor? If someone is do they have any title companies that are investor/wholesale friendly that they could refer me to?

Thanks 

Nick

[Mitch Coluzzi]

NOT LEGAL ADVICE:

Before you start calling around title companies, get clear on the process you will be utilizing, and the correct verbage you need to know.   A reassignment fee is still viewed as compensation by MOST title companies.  Would you feel comfortable explaining to a judge the difference?  Me either...

I do nothing in California and I do not wholesale properties in the "traditional" bigger-pocket verbage but here is what a quick google search produced for California and the reason MOST title companies will not allow you to be on the HUD without having a broker's license (agent's get paid through brokers).

Source:   http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=10001-11000&file=10130-10149

10130. It is unlawful for any person to engage in the business of, act in the capacity of, advertise as, or assume to act as a real estate broker or a real estate salesperson within this state without first obtaining a real estate license from the department, or to engage in the business of, act in the capacity of, advertise as, or assume to act as a mortgage loan originator within this state without having obtained a license endorsement.

10131. A real estate broker within the meaning of this part is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others: (a) Sells or offers to sell, buys or offers to buy, solicits prospective sellers or puchasers of, solicits or obtains listings of, or negotiates the purchase, sale or exchange of real property or a business opportunity. (b) Leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities. (c) Assists or offers to assist in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government. (d) Solicits borrowers or lenders for or negotiates loans or collects payments or performs services for borrowers or lenders or note owners in connection with loans secured directly or collaterally by liens on real property or on a business opportunity. (e) Sells or offers to sell, buys or offers to buy, or exchanges or offers to exchange a real property sales contract, or a promissory note secured directly or collaterally by a lien on real property or on a business opportunity, and performs services for the holders thereof.