Hi everyone! Does anyone know which states I have to have an AIF/POA for in order to get their lot on the MLS? Trying to find new states to market to and I’d like to stay away from those where I must own the lot first or have an AIF/POA on them.
The rules for listing a property on the MLS without owning it can vary a lot by state. I most cases, you can list a property if you have explicit permission from the owner, usually in the form of a Power of Attorney (POA) that designates you as their Attorney-in-Fact (AIF). This lets you act on their behalf to list the property.
Some states have stricter requirements and may not allow you to list a property unless you actually own it. A local real estate attorney or an experienced agent in those areas should be able to give you clear guidance.
If you’re looking at new markets, you can avoid some headaches by looking at states with more flexible listing rules.
I’ve been a Realtor for 46 years. This issue has become a hot issue in the last few years with scammers trying to sell land they don’t own.
State Real Estate Commissions believe they exist to protect consumers from rogue real estate agents. So if you call some state real estate commissions and ask them if you can sell real estate you don’t own through an agent without a POA, their alarm bells are going to go off. None of them will say yes.
Also consider that individual MLSs have rules about what properties can be listed in their MLS. They could require a POA as part of their listing package even if you bypassed the state real estate commission. Also consider that the agent works under a Broker-In-Charge for that firm. The BIC could require a POA even if you found a rookie agent that didn’t know to ask for a POA.
With all the scamming/wire transfer fraud that has been out there for the last few years, you are trying to push a string uphill. If the seller of your property found out that you are trying to list and resell the property that you bought for a low price from them, they could file a complaint with the real estate commission and the agent could lose their license. They could also charge you with attempted fraud because you didn’t tell them you were going to list the property.
Trying to do it the way you are trying to do it is highly risky. Why not just do an assignment?
Jim Hunter
Here is an example of what I was talking about earlier today. Realtors use docusign to circulate copies of contracts (as do a lot of other people). A few minutes ago I got an email from the Licensing Board for General Contractors (I’m also a contractor) that scammers are sending out phishing emails trying to get people to open up purported Docusign documents. See the email attached.
With all this going on, especially when Realtors could lose their license by making a mistake, you can’t blame them for being gunshy.
In Virginia, you must be the owner to list in the MLS as of August 2023… somewhere around that time.
I know in AR and AL you must own the lot or have an AIF/POA on the seller. Any other states?