[Tim Myers]

Tim Myers

Hey all,
Did some investigating about needing a license in order to , Lease and sub lease, getting an option then selling with owner financing, in the state of north carolina. I understand that you become a principal when you get a contract on a home and then you sell your rights to the contract. Here is something interesting I found while searching google about this subject. North Carolina is pretty strict. John “cash” locke does sub-2 deals, he actually contacted the North Carolina Real Estate Commission about this subject, here is how they responded:

B. M. Brogden, Jr.
Chief Deputy Legal Counsel
NC Real Estate Commission”

I emailed Mr. Brogden and requested his phone number so that we could discuss Subject To investing in North Carolina. He graciously responded with his phone number.

I called Mr. Brogden in the afternoon of August 24, 2004.

Here is a synopsis of our conversation and was reviewed by Mr. Brogden:

North Carolina has no problem with Subject To investing as long as the following guidelines are adhered to:

The problem with the use of a “Land Trust” as a means of concealing a violation of the “due-on-sale” (DOS) clause is that even where the designated trustee is a real person or entity, the identity of the actual beneficiary is concealed or obscured.

This can constitute a deceptive, misleading or unfair trade practice in violation of Chapter 75, N.C.G.S, and, in the opinion of the Commission legal staff, is a circumstance tending to show the person actually controlling the trust is attempting to act as a real estate broker without a license.

Much the same is true for agreements, such as installment land sale contracts or lease/option or lease/purchase arrangements that are not properly recorded in a timely manner in the chain of title. No reasonable person or prudent investor would fail to immediately and properly record a document transferring an interest in title due to the risk of loss associated with the failure to timely and properly record.

A person or firm truly dealing on their own account would typically obtain a deed, option or contract, properly notarized and recorded, in order to protect their investment. Failure to do so is very convincing evidence that there is no real investment and that such person or firm is no more than an agent without a license.

This is a little disturbing after I read this. So basically, if i don’t record these documents at the public records it would appear that I am just trying to act like broker without a license? what do you guys think? Would it jsut be easier to get a license that way there is no question? From what I understand, if I did get a license I would have to team up with a broker or start my own brokerage. Would a broker be willing to assign my license to his brokerage if I am not going to be listing homes but just basically doing my own thing. He would be responsible for all of my activity with no financial incentive for him at all. Thanks for the help guys.