Real Estates agents are under a set of laws that determine where and how they can transact real estate deals. A license in one state does not give them the right to practice real estate in any state.
A Real Estate agent or broker cannot sell or transact a real estate deal for commission or sales in a state they are not licensed. To do so could mean that they could be prosecuted to the full extent of the law, which could even include time in prison.
Knowingly attempting to sell or transact real estate in another state can be a grave criminal offense.
Table of Contents
- Real Estate Agents Showing Property In A State Without A License
- Criminal Act Of Practicing Real Estate Without License
- Criminal Penalties When Practicing Real Estate Without License
- What Sale By Owner Means
- Related Questions
Real Estate Agents Showing Property In A State Without A License
A Real Estate agent cannot show the property in any state without a license. In every state they want to offer or sell property, they need to have a state license.
Anyone who wants to sell real estate as a salesperson, estate agent, or estate broker must complete the coursework and obtain a state real estate license. State real estate license requirements will differ from state to state.
Almost all states require a license for any state you want to practice real estate in. The laws differ from state to state, but some states may require that you show a legal address to sell or broker real estate in their state.
Most states require that you take some coursework, apply to the state board that governs real estate licensing and then pass a written exam. Only after you have received a state license can you legally practice, broker, or sell real estate in that state.
If you have attempted to sell or broker a property in a state you are not licensed, then you have committed a crime by practicing real estate in a state without a license. This crime is punishable under the law.
Criminal Act Of Practicing Real Estate Without License
It is a criminal act to practice, sell, or broker real estate without a license in any state. Practicing real estate without a license in a state you are not licensed in can mean you can be punished to the full extent of the law.
In almost all states, the law will look at if you practiced on behalf of someone else in a real estate transaction. Anytime you have acted on someone else’s behalf to buy or sell real estate so that you receive a fee, commission, or other types of compensation can be viewed that you have illegally engaged in a real estate transaction.
You can not engage in a real estate transaction or negotiation on someone else’s behalf if you are not legally licensed to do so in that state. This includes any time you try to conduct a real estate deal without a license.
To buy, sell or broker a property in a state, you must have a license, even if the state line is just a mile from where you reside. If, for example, you live in Maryland and want to broker real estate in Virginia, you must have a real estate license in Maryland and Virginia.
If you decide to move to another state and do not go through the process of correctly applying for a license in that state and attempting to sell real estate without a license, that would be a criminal offense. If you do this several times, each transaction is considered a separate offense.
Criminal Penalties When Practicing Real Estate Without License
Not all the laws in every state are the same about practicing real estate without a license. In some states, the crime may be viewed as a misdemeanor offense, and in other states, a felony offense. Each state can have different rules if you find yourself in a situation where you are in legal trouble. If you are in legal trouble about practicing real estate without a license, contact a lawyer in that state for help and advice.
Here are some ways states may persecute you for practicing real estate without a license. How they apply the law can differ in each state.
- Fine – Some states will require you to pay a fine. The fines can vary from $1,000 to $5,000 or more.
- Prison Or Jail – For some states practicing without a license can be a felony; the law may require you to spend time in prison. For some states, this could be anywhere from one year to four years.
- Probation – Some courts can order probation as part of their criminal sentence. When a court convicts a person on probation, they can serve their prison sentence, typically 12 months or longer out of prison. Probation usually requires the convicted person still pay fines and court costs.
- Restitution – In some cases, the court may decide that you need to pay restitution. This can include paying back any fees or money you may have received during the real estate transaction.
State courts will implement the law differently according to how their state law views practicing real estate without a license. Whether a misdemeanor or felony, practicing without a license is illegal and should not be done by anyone.
What Sale By Owner Means
All states allow property owners to sell their property themselves or what is known as “For Sale By Owner.‘ The “For Sale By Owner” enables property owners to act on their behalf in real estate transactions without a real estate license.
For Sale by Owner means you can sell real estate for your property without a real estate license.
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Related Questions
Can You Take The Real Estate Exam Without Taking Any Classes?
Becoming a Real Estate agent in the United States requires you to take a real estate exam for the state or area where you want to sell real estate. Each state will have some slightly different real estate laws.
By clicking here, you can read more about Can You Take The Real Estate Exam Without Taking Any Classes?
Why Is Real Estate Called ‘Real Estate’?
The word Real Estate comes from the Latin word realis, but it refers ideally to the physical and economic characteristics of real estate or real property. The word Real Estate can date back to the 17th Century. Real Estate is a legal term used in many English-speaking jurisdictions worldwide.
By clicking here, you can read more about Why Is Real Estate Called ‘Real Estate’?
