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Updated over 8 years ago,
Question about marketing a property I don't own...
North Carolina law states that "it is unlawful for an person or business entity to act as a broker directly or indirectly, without a license. The definition of real estate broker is a person or entity that lists, sells, buys, auctions or offers to do any of the foregoing or otherwise negotiate the purchase, sale or exchange of real estate or improvements thereon for others for compensation. There are two exceptions to receiving compensation without a license. 1. sharing compensation with parties to the transaction (the buyer or seller) and 2. payments to travel agents for vacation rentals."
My question is this: The seller I'm dealing with has agreed to allow my to market his property to my buyer's list in return for 50% of the profit I make on the end-sale (I'd pay closing and all expenses.)
Per NC law, how can I legally market a seller's property to my buyer's list? According to my attorney (who has very little REI experience) the 50% profit cut would still qualify as a commission. My thoughts are that I may could a) agree to actually BUY the property from the current seller once I have another offer in writing, then do a 'double close' and resell the property to the end-buyer or b) sign the contract with the seller, then assign it to the end buyer without ever closing on it.
Either way, I'm unclear on whether it's actually illegal to market a property I don't own.
Does anyone have any experience with this?