Bird Dogging Legalities

[AJ™]

I just read on another forum that paying for a service that results in a sale of real estate and the pay is based on the closing of a sale is illegal if that person is not licensed in that state.

Is this true?  I have never heard of this

[HoldAndBuy]

From what I've read on this forum, birddogging is illegal in some states like Texas, but rarely enforced. Do a search on this forum and you'll find other threads about it.

I just read on another forum that paying for a service that results in a sale of real estate and the pay is based on the closing of a sale is illegal if that person is not licensed in that state.

Is this true?  I have never heard of this

[ericmedem]

I love these doom "Did you hear about so and so" Stories

yes taking a fee for birddogging could be considered illegal in some states.

But the you can get around them if you have a decent contract with the people paying you.  You just need to make it clear you are not being paid for properties. 

You are being paid as an independant consultant for property location......How's that for fancy sounding?

or you can start a cheapy website and have your fees paid to the website as advertising fees.

Also, believe it or not there are not bird dog police running around.  In most cases the only people that will know who got paid is the person who paid you.....

And why would they report you, the act of paying you would be illegal as well.  They would be shooting themselves in the foot.

[THR2008]

Getting too caught up in is bird dogging illegal or not is  stop worrying about that and find some deals do you know of anyone who has been arrested for doing so? I didn't think so. Forget all the hype that your friends who have never made a dime in Real Estate tell you.

[jmd_forest]

Selling information is not illegal. Please have those who state bird dogging is illegal cite the specific law to which they are referring. It is most likely you will find out that it is the Realtors code of ethics or similar issue, not LAW, prohibiting licensed real estate professionals from paying third parties. If there is an actual law prohibiting bird dogging it is almost aways possible to legally circumvent using a good partnership agreement or similar contract.

jmd_forest

[d bridges]

from reading this forum, i am under the impression that collecting a finders fee (bird dogging) in texas is legal if i have a contract with the person paying me? please let me know if this is correct. i am new to re investing.

[Lamar]

from reading this forum, i am under the impression that collecting a finders fee (bird dogging) in texas is legal if i have a contract with the person paying me? please let me know if this is correct. i am new to re investing.

I believe you are correct, but it's best to talk to a Lawyer if you have legal questions.