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September 2, 2009
Co-broking for Myself
I am received my real estate broker's license awhile back, but never used it. I do not work as a re broker.
Now that I am buying property I figured I could use it to take half the commission since I am brokering the transaction for myself.
Does anyone know if this is allowed or if agents/brokers will refuse to work with me because I am basically taking a cut.
Comments
I think the answer is no, you cannot. You have to have an active license, and it has to be with a broker. Also, I don't think in general you can represent yourself in the transaction. Not 100% on the last part.
Posted by: Shoots and Leaves at September 2, 2009 2:03 PM
You cannot conduct any RE transaction without being sponsored by a Broker.
Also, you must disclose to the seller & his agents that you are a licensed RE agent even when buying for yourself
Posted by: cggirl at September 2, 2009 2:17 PM
That last comment is absolutely untrue, however helpful RE agents might be. There is simply no requirement that you have to have a broker in any transaction. Or an attorney, for that matter.
Posted by: gothamlawyer at September 2, 2009 3:09 PM
I think there is a misunderstanding, I am not an agent, I am a licensed real estate broker. The question is whether there is a prohibition against me representing myself as a buyer's broker and therefore, splitting the commission as well.
I am not an agent. Gothamlawyer is right that a broker/agent/attorney is never REQUIRED for a real estate transaction.
Posted by: BKed at September 2, 2009 3:37 PM
It sounds as though BKed knows the distinction between agent and broker and is confirming that s/he is a broker. Everyone who passes the licensing test is an agent and remains so for a period of time (2 years, I think) and if active during that time, must be under the guidance of a licensed broker. After that time elapses, s/he can apply for the broker's license and practice independently.
I remember from school that it's actually a hindrance to buy and sell (more so sell) as a licensed agent/broker, because you have to disclose your status and are subjected to a stricter upholding of the letter of the law. While sellers are typically expected to be ethical, it is a "buyer beware" marketplace. That is less interpretive when an agent is selling/buying.
But, the basic question is "Can I?" And I believe the answer is yes, but again, the practicality of having other agents/brokers co-broke with you is always a challenge, although maybe less so in the current market. You can also use the leverage the commission creates as a negotiation tool.
Posted by: BKRed at September 2, 2009 4:25 PM
You cannot recieve a commision if you own the building. So because you are buying the building, I am pretty sure the same law applies. You can represent yourself, but you cannot collect a commision.
Posted by: Cobblehillbaby at September 2, 2009 6:05 PM
I don't think the previous comments answered the OP's question. For some reason, it seems that people don't read well.
Anyway, you'll find the answer in this blog.
http://curbed.com/archives/2007/07/27/ask_curbed_im_out_of_the_broker_game_or_am_i.php
"ABSOLUTELY YES, A BROKER CAN CO BROKE IN A SITUATION IN WHICH HE/SHE IS PARTY TO THE TRANSACTION.
See Liuzzi v. Negro, 109 Misc2d 526 (N.Y.Sup.Ct. 1981). says that licensed real estate brokers are not prohibited from receiving commissions in transactions in which they are a party.
ANY, AND I MEAN ANY BROKER WHO TELLS YOU DIFFERENTLY IS NOT ONLY VIOLATING CODE OF ETHICS, THEY ARE VIOLATING NEW YORK LAW."
Hope this helps.
Posted by: InvestorLlew at September 2, 2009 8:38 PM
Your license is void if there is not a broker holding it for you. So unless you have a broker holding your license you can't collect any commission.
Posted by: Streetwise123 at September 2, 2009 8:41 PM
InvestorLlew, while what you say is true, if there is not an active broker holding BKed license then its not a valid license. Anyone can go to school and take the exams and pass, BUT unless BKed walked into a real estate firm and ask them to hold his/her license and they agreed to sponso them, it isnt valid, and therefore they are not an active real estate agent and are not permitted to collect commissions.
Posted by: Streetwise123 at September 2, 2009 8:48 PM
Hi Streetwise. Unless I am reading the OP incorrectly, he says "received my real estate broker's license awhile back, but never used it."
The OP, BKed, also writes further down, "I think there is a misunderstanding, I am not an agent, I am a licensed real estate broker."
So, what I am wondering is why are so many posters here thinking that BK is not a Broker but an AGENT who needs a Brokerage to hold his license? HE IS A BROKER.
Therefore, he can split the commission as a co-broke.
So, unless someone can tell me that a BROKER needs to have his license held by a Brokerage firm, BKed should be good to go to split the commission.
The only other thing would be if BK is not a full Broker but an Associate Broker. If that's the case, then he would need his license held by a Brokerage. BUT NOT IF HE IS A FULL LICENSED BROKER as he indicated TWICE.
Posted by: InvestorLlew at September 3, 2009 1:47 AM
InvestorLlew is correct, I am a broker, not an agent.
So as far as I can tell: I can co-broke my own transaction, but there may be some issues getting the seller's broker/agent to agree.
I am also confused as to the repeated assertions that I am an agent.
Thanks for the help.
Posted by: BKed at September 3, 2009 2:29 AM
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