Alabama Real Estate Commission Rule 34-27-30

While the verbiage of this appears to have we Alabamians "hornswaggled"...my Mother and Stepfather (both attorneys) said the following:

1. The "intent of law" here (which is evidently very, very important) is to prevent companies and individuals from representing themselves as licensed Real Estate Agents, Brokers, Mortgage or financial brokers (capable of exchanging securities) and / or any occupation that requires (underlined) a license.
2. If the code was meant to obstruct, or prevent individuals or companies from buying, selling, trading, acquiring, renting and/or even finding properties for, or from others...then the Real Estate market in Alabama would completely stop.

I think the biggest thing that made me feel better about this was when my step father made the following comment..."If the intent of law was to stop anyone but licensed people, then Home Builders and Individual property owners would be breaking the law just by talking to someone about buying their home" and "the clear intent of the law is to prevent misrepresentation of one's self to people regarding having a license of some sort." He told me to be sure that I told people (as stated in Dean's book)that I am not a licensed real estate agent or broker and to be sure that I let them know that my company invests in Real Estate.

He has since talked to a couple of his buddies and has verified that it is okay to do what we do as long as our contracts are in order and we never call ourselves "brokers or agents"...hope that helps, my Birmingham brother.

Jon

this was the first time that I had ever read the statute for Alabama. As Jon said above, something must be missing as they can't stop builders, companies, investors or homeowners from buying and selling real estate. There has to be a preamble somewhere that infers that you cannot do anything in the statute for the benefit of another entity unless you have equitable and/or titlable interest in the property. Of course, you cannot hold yourself out to be a real estate agent and/or perform services that would be reserved for a licensed person. That would include showing houses to other possible buyers that you have no legal interest in or splitting commissions with an agent for services rendered. This doesn't mean that you can't make money with agents, but you have to make sure that you don't cross the line AND get your arrangement in writing with the agent so both parties fully are clear about each others duties and compensation. Lastly, finder's fees are usually legal in most states but a finder's fee is usually a flat fee for an introduction ONLY. Just be careful with your situation AND think before you act!!

thankful for your information and for the extra effort you made to qualify it. It is a powerful tool for me and other Roll Tiders and Auburn Tiger investors to rebute the claims made that what we do is illegal. Thank you mom and dad for also for their input. If you dont mind, I will PM you later. I read your personal infor and your post about your first deal being accepted...CONGRATULATIONS!

taking the time to address my questions on this board as well as the emails. Maybe one of these days you will need to ask me a question, and maybe I can answer it.....probably NOT. Unless it has to do with Turkey Huntin or doodlin for catfish.

Steve,

No problem at all...let's get together some time for lunch. I'll PM you and give you my phone number and if there is ever any help I can give you...consider it done. I am very grateful to be in the DG family and am finding and creating opportunities every day I can. I look forward to meeting you some time.

Jon