What is your opinion on advertising a property that is under contract but not closed on? Legal? Illegal? What about a property with an option contract? I have a property I would prefer to find an end buyer for before taking the risk to purchase myself.
I got a call from the MN department of commerce about this last week. I actually spoke to an “Investigstor”. I told her that all of my property either had a purchase agreement or an option to purchase. She told me that both of those situations constituted equitable interest and it was OK to market the property. Just be sure that you never say that you represent the buyer or that you are marketing a property for them. At the end of the day, you are offering to assign a contract for a fee.
FYI – apparently referring to business as a “Real Estate Company” peaks the ire of realtors. The DOC was calling me to see if I was operating as an unlicensed agent. After some grilling about our business practices, I made a quick change to my website to refer to the business as a real estate investing business.
Joe – thanks for sharing this with the forum. I personally don’t advertise the property until I have the deed recorded at the county. Mostly because I have had a few get hung up in recording and I am not comfortable with fielding questions from buyers when I have a paperwork mess to clear up. That’s just how I do it.
As Joe said – never give the impression that you represent the owner in any way.