All Topics / Help Needed! / Is it legal to give gift cards as referral rewards instead of cash?
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.
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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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.
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
Email Me | Phone MeProperty Lawyer & Town Planner
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.
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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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 Meselling motels in NSW
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