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This is Anita from Real Estate Crunch.
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You know, one of the things that a lot
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of people they think about when they
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look at real estate, they say, "Oh, you
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know, I want to be able to do real
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estate, but without a real estate
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agent." Fine. If you want to buy a home
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on your own without the real estate
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agent, you can. But if your friend wants
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you to sell their home or your neighbor
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says, "Hey, you're a great salesman. Can
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you help me sell my home?" Then that is
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a whole other and different story. We're
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going to talk today about some of the
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risks of unlicensed real estate deals.
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Because there's a lot of people that
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think that, oh, this should be no big
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deal. I should just be able to do it.
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But the truth is, there are some very
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defining rules when it comes to real
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estate. You know, if you've ever sort of
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like thought about like, oh, I could
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sell my neighbor's home. When you say to
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your neighbor, "Oh, let me sell your
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home for you." And you're not a licensed
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real estate agent. That actually is not
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legal. You need to be a licensed real
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estate agent in order to buy or sell
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property. It is not legit. And this
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might surprise a lot of people because
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they might think, well, this doesn't
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really matter at all. But, you know, in
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in almost all states, and I believe it
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is all states, that you need to have a
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license. You have need to be a licensed
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real estate agent. And each state has
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different boards and different things
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that you must do to become a real estate
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agent. So if you really want to sell
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that neighbor's home of yours, first get
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your license and then you can do it. You
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know, so that is really important. There
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can be a lot of financial and profession
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um professional repercussions if you try
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to do this. You know, stepping the world
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of real estate can be can seem thrilling
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at time, but you know, the shortcuts in
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the industry can lead to a dead end.
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Diving into real estate transactions
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without proper license isn't just
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rulebending. It's a recipe for disaster
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for your finances and career and for
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your own career. And this could really
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impact you in other areas of your life.
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If you begin to try to circumvent the
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licensing rules, you could face, you
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know, you could face hefty fines, you
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know, thousands of dollars worth. And
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you could also be sued, you know, by the
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by the buyer or other people if it's not
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an actual transaction that you're
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supposed to do. You could actually go
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down to as, you know, trying to scam or
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trying to scam somebody out of their
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property. That's one of the reasons why
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they have real estate agents is to
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protect the buyer and the seller. And so
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if you decide that you want to try to
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buy and sell, you're going to try to buy
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and sell a property. If it's your own
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property, you of course and you own the
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property, you are legally allowed, you
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know, to do your sellers, you know, sold
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by the owner. But if it's not your
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property, and if you're not the owner of
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the property, and even if it's your
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parents' property, your cousin's
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property, your next door neighbor's
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property, and you are not an agent, you
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are not legally allowed to sell by
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owner. Of course, you could, you know,
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advise somebody, you could help
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somebody, you know, or if they wanted to
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sell by owner, you you could, you know,
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advise and help them, but you yourself
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able to act as an agent. And the reason
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is is there's some ethical
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considerations and it's for the
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consumer's protection. If I'm going into
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and um I'm considering to buy a home and
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the person I'm talking to, you know,
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there's the owners there and then I'm
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talking to what I think is the real
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estate agent and I have my real estate
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agent there and we think we're
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negotiating between the two real estate
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agents with the owner and we're not. you
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know that of course has ethical concerns
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and can be concerns also of a scam or
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fraud. So there can be all of those
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concerns you know with that you know so
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it's really essentially not good to do
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and is not legal and it goes back again
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that if this is something that you
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really want to do if you really want to
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be able to buy and sell real estate then
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go and get your license and become board
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certified. In a lot of states it's not
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that difficult. You need to do some
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coursework. You need to take an exam and
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you can become a a licensed real estate.
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A lot of people, they sell real estate
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while doing their full-time job. They
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might do real estate on the side. They
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might become a real estate agent just
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because they're, you know, interested in
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real estate. You can do it for all those
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different reasons, but do not say that
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you are a real estate agent and try to
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buy and sell property if you are not. My
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co-author James Johnson has written a
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blog on this entitled Risks of
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Unlicensed Real Estate Deals if you'd
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like to be able to read more on this.
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But we um highly recommend and we highly
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stress that if you are not a real estate
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agent, do not try to pose as one and do
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not try to buy and sell property without
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the proper um legal documentation to be
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able to do so. This is Anita from uh
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Real Estate Crunch. Thank you so much
5:06
for listening. We will put a link to
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James Johnson's blog post in the
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description uh below if you'd like to be
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able to read more on this. And um if
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you'd like to be able read more on
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there's lots of this on the internet and
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check with your own state. You know, if
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you're if you're not sure, call your own
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um state and they can tell you exactly
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all the rules on this, but um the main
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rule is that real estate you have to be
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a boardcertified real estate agent to be
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able to sell real estate. Same way that
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if you go to a doctor, you want to make
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sure the doctor passed the board. If you
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go to a medical facility, the nurse has
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or if you're working with an accountant
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that the accountants has passed the
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board that you know, all of these
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different things they that they're all
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board certified for a specific reason
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and real estate is one of those. Thank
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you so much for listening and being part
5:55
of our community. If you have not yet,
5:56
press the subscribe button. We'd love to
5:58
have you join with us. Thank you.
