Q & Q


Q & Q
Question: An agent wants to sell investment properties that are owned by an LLC of which the agent is the sole member. Can the agent list those properties? What is the best practice for doing this? Answer: The agent may list the properties owned by the agent`s LLC. The agent must obtain written consent and disclose that the agent has an ownership interest in the seller-LLC, per Wis. Stat. § 452.133(3)(b) and Article 4 of the REALTOR® Code of Ethics. The following example may be used to obtain written consent in the offer to purchase: “All parties understand licensee, __________, has an interest in the (Buyer) (Seller) [STRIKE ONE] entity or organization and consent to the licensee serving as a real estate agent for that entity or organization in this transaction.” Wis. Stat. 452.133(3) states: “Wis. Stat. 452.133(3) Prohibited conduct. In providing brokerage services, a licensee may not do any of the following: (b) Act in a transaction on the licensee`s own behalf, on behalf of the licensee`s immediate family if the firm is an individual, on behalf of the licensee`s firm, or on behalf of any organization or business entity in which the licensee has an interest, without the prior written consent of all parties to the transaction. For the purpose of complying with this paragraph, a licensee shall obtain the written consent in the offer to purchase, option, lease, or other transaction contract.” Article 4 of the Code of Ethics provides: “REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)”... ...more
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Question:

An agent wants to sell investment properties that are owned by an LLC of which the agent is the sole member. Can the agent list those properties? What is the best practice for doing this?

Answer:

The agent may list the properties owned by the agent`s LLC. The agent must obtain written consent and disclose that the agent has an ownership interest in the seller-LLC, per Wis. Stat. § 452.133(3)(b) and Article 4 of the REALTOR® Code of Ethics.

The following example may be used to obtain written consent in the offer to purchase:

“All parties understand licensee, __________, has an interest in the (Buyer) (Seller) [STRIKE ONE] entity or organization and consent to the licensee serving as a real estate agent for that entity or organization in this transaction.”

Wis. Stat. 452.133(3) states:

“Wis. Stat. 452.133(3) Prohibited conduct. In providing brokerage services, a licensee may not do any of the following:

(b) Act in a transaction on the licensee`s own behalf, on behalf of the licensee`s immediate family if the firm is an individual, on behalf of the licensee`s firm, or on behalf of any organization or business entity in which the licensee has an interest, without the prior written consent of all parties to the transaction. For the purpose of complying with this paragraph, a licensee shall obtain the written consent in the offer to purchase, option, lease, or other transaction contract.”

Article 4 of the Code of Ethics provides:

“REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)”...

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