All Topics / Help Needed! / Is it legal to give gift cards as referral rewards instead of cash?

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Captain_PicardCaptain_Picard
    Participant
    @captain_picard
    Join Date: 2003
    Post Count: 27

    Hi everyone, it's been a long time since I've been on here. I'm about to do sandwich lease options, and I have heard that it is illegal to pay bird dogs to bring me deals. Is it legal to reward a bird dog with, say a $500 gift card for referring a seller with an unadvertised property to me? I would give the gift card only if the seller agrees to the lease option.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I don't think it is the money that is the problem it is the acting as an agent without a licence

    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 Captain_PicardCaptain_Picard
    Participant
    @captain_picard
    Join Date: 2003
    Post Count: 27

    Well I will be doing a rent to own on any property that the bird dog brings me, and then selling on a rent to own, so I won't actually be buying the property myself at any time. Unlike installment contracts (wraps), I don't need a credit license to do rent to owns, and since I am not buying the properties, neither I, nor my bird dogs need a real estate agents license. All my bird dogs will do is let me know of someone who wants to sell their property – they don't do any research, or negotiations with the seller – I do that. I don't see what the problem is.

    Profile photo of RPIRPI
    Participant
    @rpi
    Join Date: 2012
    Post Count: 308

    In QLD you doing the negotiations is sufficient to trigger the Real Estate Agent Licensing requirements

    RPI | Certus Legal Group / PRO Town Planners
    http://www.certuslegal.com.au
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    Property Lawyer & Town Planner

    Profile photo of Captain_PicardCaptain_Picard
    Participant
    @captain_picard
    Join Date: 2003
    Post Count: 27

    I am in Queensland, but I still don't see a problem. The negotiations I do with a seller revolves around the option fee, length of the lease, price of the property if I decide to buy (which I won't), how much the rent will be, etc. The negotiations do not involve me buying the property, just controlling it under a lease and an option to buy. I will then offer the property to someone else under a lease and an option to buy. If that person does want to buy, and there is only a 50% chance they will, they will exercise the option to buy directly from the seller, not from me.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    If you have an option of the property then you will have an equitable interest in that property and could therefore probably be ok – but seek your own legal advice on this.

    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 thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Suggest you run the scenario by the Govt Dept in Qld which issues RE licences and enforces breaches of the relevant laws since they'd be the ones bird-dogging you if you broke the law. They might give you the all clear or not.

    Good luck.

    Cheers

    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

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