Real Estate Agent called me and said what I was doing was illegal

[Scott Anthony]

Hello. I have a comment, and then a question. I have been asked by a couple to try and sell their house. I had advised them that calling an Agent was probably the best way to go to get a good price for it. (In my area houses tend to stay on the market for a few months before selling.)

They wanted to sell quick and were willing to sell for their payoff. This seemed like an OK deal, with some profit available, and no rehab (well not much) was needed. So, I emailed and called a few "investors" on my short Buyer List. No takers. So I advertised the house for sale on craigslist, facebook, zillow, etc.

I get a call this weekend from an Agent, who says his client is interested in seeing the house. So I told him I just had to arrange it with the owners. He started getting really fidgetty.... "Wait, YOU'RE not the owner? You can't advertise to sell someones house, unless you own it, or are a Licensed Agent."

It went back and forth, I explained what it was that I was doing, and that lots of people do that..... He said he had never heard of anyone doing that before.

So...... My question: Am I doing anything wrong by advertising this house for sale, and I'm not a Real Estate Agent?

Answers, comment are all welcome. BTW I'm in Texarkana, Texas, if that makes a difference.

[Account Closed]

Like others have said, it's collecting a fee or commission that makes it brokering without a license. In situations like this, I prefer a straight option contract. It gives you the option to buy but doesn't bind you. In my experience an option agreement is clear to sellers as well. There doesn't need to be a weasel clause. The option agreement can contain clear language about assigning it. The sellers understand and agree that you are going to look for a buyer and are planning to sell your option for a profit.

Why not tie it up with an option? The option references an underlying purchase agreement with the loan balance as the purchase price, and any other terms. If you find a buyer, the buyer pays you a fee to buy your option and then performs on the purchase agreement.

All that being said, you'll still run into agents and others who won't understand option agreements. The difference is that options are totally legal, unlike shopping around a deal where you aren't a principal.