This post will serve to gather a list of all the states that require a real estate license to negotiate short sales.

Views: 4511

Reply to This

Replies to This Discussion

I think the excerpt:

"Only real estate licensees, California lawyers acting as lawyers and investors acting on their own behalf can engage in short sale negotiations."  would apply to investors who are Short-Sellers not actually to investors who are Buyers negotiating a Seller's short sale (like a Broker) unless of course they are licensed by the DRE and authorized by Seller / Borrower to speak with their lender on their behalf.

Just my .02,,,,,,

 



Smitty said:

Rod, that's not "entirely" true:

"Only real estate licensees, California lawyers acting as lawyers and investors acting on their own behalf can engage in short sale negotiations. "
http://www.dre.ca.gov/pdf_docs/pr/DRENewsRelease_092910.pdf


Lawyers and investors acting on their own behalf can negotiate.

Cameron/Bryant,

I think it's important that anyone who responds to this put the LAW that corresponds to their association guidelines.  Guidelines aren't necessarily law.  My association can publish general rules, however it may not be a law in my state.  Simply putting Realtor guides doesn't seem to be enough.  For instance, our association strongly SUGGESTS Realtors NOT negotiate on a homoewner's behalf, however many, many Realtors do as it's not a LAW.  The actual law in my state states anyone can negotiate a short sale.

That's interesting Thom.  That's not how I interpreted it at all. 
Which brings up a GREAT point...this is open to interpretation.

 

The way I read it, an investor, who buys a short sale can negotiate on their own behalf.   It doesn't specifically state an investor that SELLS a short sale. AND it doesn't state an investor who BUYS a short sale...

 

Interesting...to say the least.

 


Thom Colby said:

I think the excerpt:

"Only real estate licensees, California lawyers acting as lawyers and investors acting on their own behalf can engage in short sale negotiations."  would apply to investors who are Short-Sellers not actually to investors who are Buyers negotiating a Seller's short sale (like a Broker) unless of course they are licensed by the DRE and authorized by Seller / Borrower to speak with their lender on their behalf.

Just my .02,,,,,,

 



Smitty said:

Rod, that's not "entirely" true:

"Only real estate licensees, California lawyers acting as lawyers and investors acting on their own behalf can engage in short sale negotiations. "
http://www.dre.ca.gov/pdf_docs/pr/DRENewsRelease_092910.pdf


Lawyers and investors acting on their own behalf can negotiate.
Yes, as with most laws, if you read the fine print, there are are some exceptions. So you're right about lawyers & investors acting on their own behalf. But collecting an up-front fee is illegal in California, something that I know many lawyers were doing until DRE said Stop.  And thankfully, DRE also put the kabosh on those unlicensed 3rd party negotiators, which seemed to be all the rage up until recently. Now, aside from those few exceptions, its RE agents who negotiate on behalf of our SS clients here in CA.

Smitty said:

Rod, that's not "entirely" true:

"Only real estate licensees, California lawyers acting as lawyers and investors acting on their own behalf can engage in short sale negotiations. "
http://www.dre.ca.gov/pdf_docs/pr/DRENewsRelease_092910.pdf


Lawyers and investors acting on their own behalf can negotiate.

Smitty,

 

The law was stated and a link provided in my original reply to this message.

 

Cameron Piper

Coldwell Banker Burnet

Smitty said:

Cameron/Bryant,

I think it's important that anyone who responds to this put the LAW that corresponds to their association guidelines.  Guidelines aren't necessarily law.  My association can publish general rules, however it may not be a law in my state.  Simply putting Realtor guides doesn't seem to be enough.  For instance, our association strongly SUGGESTS Realtors NOT negotiate on a homoewner's behalf, however many, many Realtors do as it's not a LAW.  The actual law in my state states anyone can negotiate a short sale.

Collecting an up front fee anywhere in the US is now illegal unless you are a lawyer (and even lawyers have to follow specific guidelines).  I don't think this is California specific.  With new MARS FTC laws in place, fees can only be collected at closing.

Can you be a 3rd party negotiator in California if you are licensed?
I'm pretty sure our DRE eliminated non-licensed 3rd party negotiators before MARS went into effect (last Fall, I think). I'm pretty sure you can be a 3rd party negotiator if you're licensed and either a broker or working under a broker's license. Though, IMO, 3rd party negotiators are a waste of money -- the listing agent can do the same thing (and if you know what you're doing, more efficiently, too). Plus, more and more banks won't pay for a 3rd party negotiator and prefer to work directly through the seller's agent.
Not true about California. Real estate licensees are the primary negotiators for most short sales here.

Ben Benita said:

I know Connecticut and CA require attorneys to do negotiations, but, it is my understanding ANYONE can work with an agent, but, licensing is required for those persons taht actually speak to banks.....love to see what everyone posts on this.

 

thank you

Damon Botticelli said:

Attorneys and 3rd party negotiators who are licensed by the mortgage lending division can also negotiate short sales.

 

Real estate agents can negotiate short sales only if they are involved as an agent in the transaction, (not as a 3rd party negotiator.)

 

Assembly Bill 152 which modified NRS Chapter 645F

http://www.leg.state.nv.us/75th2009/Bills/AB/AB152_EN.pdf

Terri White said:


Mark E. Wilson said:
Nevada is required to have a State Real Estate Licence NRS: 645.

 

Mark - I have been looking for exact language of the law; do you have the sub-number under 645?  thanks much

Nevada does not require a real estate license to negotiate short sales. NRS 645F is where you will find the authorized list, which includes many different types of professions, not all of which may be otherwise licensed by a different entity. It depends on who the employer is. Example 1- an escrow agent may negotiate, and they are obviously licensed. Example 2- an employee of a non-profit housing assistance entity does not need any type of licensing can negotiate. Employees of modification licensed entities do not need to be individually licensed either.

Nevada licensed real estate agents are exempt from mortgage division requirements as long as their activities are real estate related and not for the purpose of obtaining a modification.

 

In the state of Nevada, on 12-31-2010 the laws changed. It used to be you had to have your real estate license. Now you must have a "covered services provider" license with the mortgage division.
Washington - Must be one of the following: (1) licensed loan originator working in a licensed mortgage brokerage; (2) licensed real estate agent who is receiving only regular commission for acting as an agent in the transaction; or (3) attorney acting within the scope of his or her practice.

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************