You don’t need a real estate license to do Coach Mitch’s $1 Option. Post 169

Coach Mitch’s REFLECTIONS™

 

From time to time the question of licensure comes up, particularly from new clients. For every state, the answer is the same.

 

Sent: Wednesday, April 20, 2011 6:09 PM
To: Coach Mitch
Subject: Real Estate/Realtor Law Idaho

Hi Mitchell,

I looked this info below up today, it sounds like I have to have a Realtor license to do this?

Please advise?

http://irec.idaho.gov/guidelines/guideline02.pdf

My Answer:

I see where you could be startled by the language, so was I at first, however, upon a close, word for word reading, I saw that your activity is not covered in the law.

Idaho Code 54-2004(34)
“Real estate broker” is defined in the license law to include “any person who, directly or indirectly, while acting for another for compensation or promise or expectation thereof, sells, lists, buys, or negotiates, or offers to sell, list, buy or negotiate the purchase, sale, option or exchange of real estate”, and also includes “any person who represents to the public” that he is engaging in any of these acts.

When dealing for your own account, that is, when you buy or sell something for yourself, then no license is needed.

When you engage an owner, and use Coach Mitch’s “famous $1 Option.”™ by paying that $1, you have paid paid for an option to purchase real property. The purchase option gives the optionee (the potential buyer) an inchoate interest in the property. By being a potential future owner (inchoate), the law views you as having an ownership interest. Therefore, as the owner, you are representing yourself when trying to sell the property, not the actual current titled owner. You are the current owner for the purposes of the sale and and are thus NOT acting for another. Do you see how this is totally different than working on commission?

BTW, the first line in My Answer is a perfect example of my favorite sales technique, Feel, Felt, Found. “I understand how you feel, I felt the same way myself, until I learned new information.”

I hope this explanation is complete enough for you to be satisfied that your activity is legal in your state. If not, please call any attorney and ask, “If I have a valid purchase option on a piece of real property, do I need a Realtor license to sell it myself?”

See Coach Mitch’s “Ridiculously Simple System…”™ for details.
Thank you,