Consulting services based on commission?

[illtaketwoplease]

can someone explain to a non-agent how a person who is working for a seller can get paid a commission for non-licensable services after a sale? thought you had to be licensed to earn a commission or "fee" based on the result of an actual sale calculated against the sale price.

[Rakin]

OP you sound like you are trying to justify working around the laws. None of us can tell you what's legal.

If I found out about what you were doing I'd turn you into the state commission and then let them decide.

Huge gamble to lose your license and be fined.

[Silverfall]

OP, if you tie your fee to the sale of the property, then you are really pushing the legality of what you are doing. Graphic designers that design flyers for agents, which is essentially what you are saying you are doing, get paid directly and separately from the sale of the property.

There is no issue in being hired to design a flyer or marketing materials, as this is what graphic designers do. I hire a company to design my postcards, flyers, etc and they are not licensed agents. Totally legal.

Doing analysis and due diligence on any kind of real estate in which you get paid a fee, in the state of Oregon, would be considered real estate activity. You would face a civil fine here for practicing real estate without a license. Not sure of California's laws, but I would tread carefully in that regard.

[Brandon Hoffman]

Check your states legal adviser for NAR/CAR

[lvoc]

Originally Posted by juniorx

Wrong.

I provide consulting and advisory services. Knowledge and expertise are defined as a deliverable service.

When a real estate agent buys an advertisement in the LA times do the creative consultants that helped him pick and design his advertisement need to be licensed in order for him to pay them? No, of course they don't.

Sorry but you are really not even close. Doing anything that would aid in the sale of a home with payment contingent on sale and price of the home is practicing real estate anywhere I know of. In fact your present dealings are likely practicing real estate if your payment is contingent on the sale of the property.

Set yourself up as a broker and you can get away with all this...otherwise you are very likely to end up in trouble.

[jackmichigan]

Originally Posted by juniorx

So I work as an independant contractor for a very savvy real estate investor. He recently gave me a handful of properties he wants to get rid of and tasked me to do the grunt work.
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In order to further incentivize me, he offered me a basic commission structure on the properties I sell.
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I'm just helping him out with the marketing and due diligence, and in return, he promises me a certain percentage of the sales price.

Originally Posted by juniorx

As his independent contractor I help him with various duties and responsibilities in his business. One of these new duties, will be helping HIM unload a few of HIS properties.
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he wants to pay me via a commission rate since it makes more sense.

Originally Posted by juniorx

In fact, I should have mentioned that I've already done this with him before. His previous properties, which were listed with agents, I did most of the grunt work for. Advertising, income analysis, sales comps, ect ect.
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my client paid me a fixed fee for my services because I helped him speed up the sales process.

Originally Posted by juniorx

My client then pays me payment for my role as a consultant and advisor. The payment I receive is not necessarily from the proceeds of the property sale. They probably will be, but for the sake of argument let's pretend they are different accounts.

There are probably plenty of schemes out there which attempt to skirt real estate licensing laws. But if it walks like a duck, and quacks like a duck...chances are, it's a duck.

Originally Posted by juniorx

When a real estate agent buys an advertisement in the LA times do the creative consultants that helped him pick and design his advertisement need to be licensed in order for him to pay them? No, of course they don't.

On this point I'll agree with you. An advertising person who designs an ad does not need a real estate license to do so. Neither does the LA Times need a real estate license to publish such an ad. But, if you'll read the California law linked in this thread, the law specifically notes that exception to licensing requirements.

Originally Posted by juniorx

I suppose at this point I just need to call the California Real Estate Bureau

Agreed. In the end, it doesn't really matter what you believe is correct--it's how the licensing authorities view your situation. Please report back.

[oh come on!]

like someone said above, upgrading to a broker's license is the best and cheapest, but you need 2 years work experience as a salesperson, or you need enough course credits, to get it.

in the mean time, it's best to go with a 100% commission broker.