All Topics / Commercial Property / Can a real estate broker and a lawyer start a real estate company together?

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  • Profile photo of skyavenuerealtyskyavenuerealty
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    @skyavenuerealty
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    My fiance is considering becoming licensed to sell real estate. I am a first year law student. I have learned a little about real estate transactions and how they work. I understand the roles of both the broker and the attorney, but I’m wondering if my husband-to-be and I will be able to use our skills together to start our own business. Will I have to have a separate practice, or can the real estate lawyer be a part of the broker’s company?

    Profile photo of IP FreelyIP Freely
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    @ip-freely
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    It depends. Conflicts of interest is your main issue to avoid.

    Profile photo of TerrywTerryw
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    @terryw
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    Of course you can work together. I am a lawyer and a Finance broker and soon to be tax agent too.

    You probably could not run both together through the same company, and wouldn't want to either. I think there are licencing restrictions that at least 1 person with a real estate licence must be director of a real estate company. All directors of a legal company are required to be solicitors however.

    So you would just operate separate companies and refer clients to each other – but running totally separate.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of CSQTownPlannerCSQTownPlanner
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    I completely agree with the Terryw opinion.
    This is really good advice about your business planning..

    Profile photo of Troy McErvaleTroy McErvale
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    You asked whether an individual who is not licenced as a real estate agent / realtor can be "part of the brokers company". By "part of" I assume you mean have ownership interests.

    It is unclear what country you are in, so you cannot receive advice about this without that issue being certain. I assume the USA, as you use the words "broker" and "attorney" when you would usually use the words "real estate agent" and "lawyer / solicitor" in Australia.

    I then also assume that the broker would set up a company, and that you wish to know whether you can be an equity holder in that company. Generally speaking, you can be a shareholder, but not an officer or director unless you hold a real estate broker licence also. This varies a little State by State, so you will need to check with the relevant US State law as well.

    Profile photo of mattstamattsta
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    @mattsta
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    It really depends. First of all, does your husband-to-be currently have the qualifications and license to sell real estate? If he doesn’t, that’s the first and most important thing to do!

    Profile photo of tonnygardentonnygarden
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    @tonnygarden
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    It doesn't matter that only a broker or a lawyer can start a real estate company. He should have experience in the real estate industry and understanding of real estate contracts. So I think if both of you have this kind of experience then you may go for it.

    Profile photo of Scott No MatesScott No Mates
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    All solicitors are grounded in property law, it is one of the first things that you study. They cover contract law, conveyancing, real property act, secret commissions act & several others before getting out of bed in first year.

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