Can i pay my friends to market or sell my house for me in Florida? Can only Realtors receive commissions?
A realtor told me that only realtors can receive commissions in Florida. Is that true? Why couldn’t i incent someone or thank a friend who sends me a buyer? That does not seem right. Why would i be forced to ‘only’ work with a realtor when my own ‘warm market’ is pretty big?
The real estate profession is regulated by state law, so it’s illegal to earn a commission on a real estate sale if you are not licensed. Buying and selling real estate is a complicated legal matter and you must consider what would happen if either of you were sued for some reason – what’s your protection? It’s better to use a licensed real estate agent and negotiate the commission if that is what you want to do.
Having said that, however, there is nothing stopping you from giving your friend a gift of cash as a thank you for referring a buyer to you. The difference between giving a friend a cash gift and providing a commission on a home sale is how it’s accounted for by the IRS.
February 27th, 2010 at 3:04 am
HAHAHAHAHA!!! sell a house? in florida? in 2008? HAHAHAHAHAHA, your funny. thanks for giving my such a great laugh at the end of my day. i thought this day was over, but here you come, with your comedic question.
i think in order to officially advertise a house, as if selling. you should get a realtor. but im pretty sure you can just find somebody, like online and sign it over through a bank.
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February 27th, 2010 at 3:19 am
Well my grandma sold her house in chicago to a person she knew without a realator. And everything turned out fine.
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February 27th, 2010 at 4:09 am
I don’t know the law in Florida, but it is illegal to pay commissions than anyone but a realtor in some states. Mind you, there is some reasoning behind it. Realtors have a certain fiduciary duty and can be held responsible for shady deals. As a registered realtor, you are more likely ot follow the law. I believe you can pay someone to market your house (i.e. advertising for you) but it cannot be based on the sale. Here’s an idea. If you are trying to sell the home yourself, tell your friends and family, and throw a party when it gets sold, but invite everyone so everyone wins. that’s a little incentive. According to a search one site says, "Florida law prohibits real estate brokerage commissions from being paid to unlicensed persons. "
References :
http://www.nicklausrealty.com/legal.html
February 27th, 2010 at 4:31 am
For the same reason your friend cannot walk into a court and represent you. No License. You cannot practice real estate without one.
If you want to sell your home yourself you are free to do that, you just can’t pay a commission. I’m sure we all know a few basic principles of medicine, but it would be illegal to hang a sign over our garage and start doing apendectomies.
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February 27th, 2010 at 4:36 am
The real estate profession is regulated by state law, so it’s illegal to earn a commission on a real estate sale if you are not licensed. Buying and selling real estate is a complicated legal matter and you must consider what would happen if either of you were sued for some reason – what’s your protection? It’s better to use a licensed real estate agent and negotiate the commission if that is what you want to do.
Having said that, however, there is nothing stopping you from giving your friend a gift of cash as a thank you for referring a buyer to you. The difference between giving a friend a cash gift and providing a commission on a home sale is how it’s accounted for by the IRS.
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February 27th, 2010 at 5:26 am
For the same reason you can’t walk into an operating theatre and remove someone’s appendix. You didn’t go to school and obtain the license required for that job.
That said, you do not "have to" work with a realtor. If you want to sell your home on your own, no problem. To "thank" a friend who sent you a buyer with a commission at settlement would be illegal. So, if you have a friend who has a lead on a buyer, you cannot compensate that person at the settlement table.
I would imagine that after settlement if you were to send over a magnificent birthday gift, there’s no reason to suspect the reason behind it has anything to do with your property.
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February 27th, 2010 at 6:04 am
Because if you pay your friends a commission, they are practicing Real Estate, and you cannot do that without a license.
If this goes bad, are your friends going to step up to the plate on this? Or are they going to leave you holding the litigation bag? I have friends that are attorneys, and dealing with FSBO transactions gone sour is quite a lucrative area for them.
You certainly cannot enter any sort of contract to sell, but if they find you a buyer and you work with that buyer via an attorney, send them something fabulous for a special occasion.
References :
Oregon Realtor