"Strategically circumvents the requirement for licensure thereby eliminating remedies available to consumers through the commission."
This statement is the vague part that concerns me. "Strategically circumvents"; where does the line get drawn on this? So lets assume assignments are out per this new regulation (however they will still be legal and you aren't changing those English laws which have been around much longer than "long established laws that regulate the real estate industry). We aren't changing actual Contract Law so the assignment itself isn't illegal. So could the AREC decide that a double closing or a transaction funded closing isn't also part of this "Strategically circumvents" clause. What if I contract the property in a new LLC and sell the LLC. That is corporate law but is that part of the clause. What if I contract a property in a trust and assign the beneficial interest of the trust to the buyer. Good luck touching the laws regulating trusts at all. I am sure these are all methods that they would deem to fit under the clause but all of these are protected by much higher levels of law then just Assignments and Contract Law. This will just create a new niche for a Guru to come in and teach new methods and make a killing.
To those asking "why not get licensed"... Seriously? So if you can't beat them, join them? The word oppression comes to mind but that might be taking it a little far and opening another can or worms. I legally have a choice if I want to do Real Estate under the commission and their rules as a Realtor or under US law via Contract Law. I however do care about consumers and typically inform them of my intents. I don't have to be subject to certain rules being an Agent requires which I feel I shouldn't have to be.
What about the horror stories I hear on the other side of this. Please buy my house because I had a horrible experience with a Realtor. I look it up to see that it was a new Realtor who had the price set at 15% over market rates and didn't even take the time to put it on major websites that consumers use. These agents have their license hung with larger well know Brokers. I have seen this dilemma a few times. Actually here is a copy and paste from a seller I talked to today "It wont pass for a VA or FHA loan until some things are fixed and the Realtor never called me or told me we had 3 couples that made an offer." Of course I can't say if this was true or that this seller was being completely honest. I admit, these issues are few and far between but they still happen. I wish I kept count of the number of times someone didn't take my offer and decided to list but then I get a call 6 months later stating they are ready to accept my offer now. Okay I need to quit ranting now.
At the core I understand the bill, however it is infringing on rights due to US citizens per other older adopted laws. I hate that new people come in and cause a bad name for legitimate investors who choose to wholesale occasionally. Just like I am sure the AREC hates new agents who try to make the biggest commission instead of focusing on the needs of the seller. If the bill could be structured to better protect the consumer but also allot me the legal rights I have per law then I would entertain it. I respect those who chose to be a Realtor and I even respect the role the AREC play in defending consumers. It will be interesting to see how this plays out. Guess the transnational funding business will get good around here if it passes.
