So we actually have an RE agent who is handling our acquisition calls, working remotely. She is sending emails and taking in information but also relaying decisions and information to land sellers. All contracts are still signed by our LLC, her name isn’t on anything.
Second, for sales, she is handling sales calls. As far as her activity she is relaying information and answering questions about the properties. When contracts are signed again it is me, as the LLC signing the documents.
She is an RE agent in a state we do not operate in.
The reason for the post is a land seller’s cousin was pressing her on her being an agent and whatnot which she had disclosed (we hadn’t trained on this scenario specifically but I think she should not disclose anything about herself in the future). There is a concern that her license could be threatened by someone motivated enough and I don’t know enough to know if she is liable from doing this type of work.
Is there anyone here who has had a similar situation or has an idea of the liability here. Not taking any of this as legal advice of course but some insight from someone who has an idea would be appreciated.
I’m aware this is a situation where legal council is the primary recommendation.
She is an RE agent in a state we do not operate in.
Why are you working with her if she isn’t in a state you operate in? Why not just find an agent who is licensed and operating in the state where you’re working?
The reason for the post is a land seller’s cousin was pressing her on her being an agent and whatnot which she had disclosed (we hadn’t trained on this scenario specifically but I think she should not disclose anything about herself in the future).
I’m not a licensed agent (so if any licensed agents read this and think I’m wrong, feel free to say so), but I believe a licensed agent is obligated to disclose that they’re a licensed agent in any transaction they’re involved with. Nobody should have to press them to confess this. It should be clear who she is in the transaction.
There is a concern that her license could be threatened by someone motivated enough and I don’t know enough to know if she is liable from doing this type of work.
How would her license be threatened? When you say “motivated enough,” what does this mean? Motivated by what? Motivated to do what? I’m confused.
@retipsterseth We are working with her because we need someone to answer the phone when it comes to acquisitions and gathering information and on the sales side responding to leads. When we list properties on the MLS we use a flatfee broker and so, with her, the job is the phone, not to represent the property in any capacity.
As far as disclosure goes the hesitation is that she is not a party at all in any of our transactions. The idea was that this is a side job for her simply answering the phone. And we wanted to work with her because she is saavy of the real estate industry in general.
The worst possible outcome is that an angry land owner calls in, and is motivated to try and punish her by going after her license in her state. We’re still getting to the bottom of if she’s liable to lose her license due to the nature of the work she’s doing for us while being a licensed agent etc.
As you know, a small percentage of people are angry enough about low offers on land they decide to let you know about it, and a small percentage of them are motivated enough by their anger to pursuit any kind of retribution they can think of. (Threats of suing, sending us junk mail, things like that). And I want to make sure we are not putting her at risk so we’re looking into this and find out if we need to reevaluate our arrangement.