Repping out of State Buyers…
So I have a California real estate license and want to rep buyers out of state for commercial. I have been told I can negotiate and help buyers in most states (Hawaii and Utah I cannot). I am not talking about referral fees. This is more for Single tenant NNN’s. Where can I look up each state? Everything I look up is for residential which is irrelevant. Again I am not looking to rep sellers, just out of state buyers. It is a gray area so nothing saying I can or cannot. I know brokers who have done this without a problem. Please advise.
Based on the most helpful WSO content, your situation indeed falls into a gray area, and the rules can vary significantly by state. For commercial real estate, especially when representing out-of-state buyers, you’ll need to research the specific licensing requirements for each state where you plan to operate. Here are some actionable steps:
State Real Estate Commission Websites: Each state has its own real estate commission or licensing board. These websites often provide detailed information about licensing requirements for commercial transactions. For example, California has the California Department of Real Estate (DRE), and other states will have similar governing bodies.
Reciprocity Agreements: Some states have reciprocity agreements with California, which might allow you to operate without obtaining a full license in that state. However, this is more common for residential real estate, so you’ll need to confirm if it applies to commercial transactions.
Commercial Real Estate Associations: Organizations like the National Association of Realtors (NAR) or CCIM Institute may have resources or guidelines for cross-state commercial real estate practices.
Consult Legal Counsel: Since this is a gray area, consulting with a real estate attorney familiar with multi-state transactions can help clarify what’s permissible and ensure compliance with state laws.
Networking with Brokers: As you mentioned, you know brokers who have done this without issues. Reach out to them for insights or best practices. They might also have resources or contacts in other states to guide you.
For specific state-by-state information, you might need to dig into the licensing board of each state or consult a comprehensive resource that specializes in commercial real estate law. If you’re focusing on Single Tenant NNN properties, understanding the nuances of each state’s laws will be crucial to avoid any legal complications.
Sources: Breaking Into Commercial Real Estate, Commercial Real Estate Brokers: Cold Calling Advice, What are some great and also good real estate firms that I should look into in southern California?, 5 Things that Determine Your Success as a Commercial Real Estate Broker, 5 Things that Determine Your Success as a Commercial Real Estate Broker
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