In Michigan an agent can put their license in "escrow" by putting their license with a school or broker that does not belong to a board. They don't have to pay dues that way. When a person puts their license with a school, they must give any client they recieve to the school and then rec. a referral fee. Not allowed to practice real estate.
I showed and negotiated vacant land for a couple for over a year so I was going to have a procurring cause issue.
When I research the so called "agent" that wrote an offer on the vacant land I found the person was licensed with a school, on the purchase agreement he made up a fake brokerage on the pa, verbally said he was the broker. He wanted the check made out to the fake brokerage and he had a bank account set up in this fake name.
I looked on line for the brokerage, it wasn't listed. I looked up his name, his license was with a school. Well, I called the school, they said he wasn't suppose to be actively selling real estate, then I turned him into the board for fraud. The purchasers used him again for another peice of land. He wrote another offer, the listing brokerage is aware of the agent practicing illegally, he won't get paid for the transaction. Now if something else happens, who all can the purchasers sue for knowing he was not suppose to be practicing, therefore everyone involved is being dishonest with the purchasers.
The second person, called me to set up a showing for one of my listings. I checked the state site for his license, his license had lapsed. I had to call the office he was doing business out of and yadda yadda yadda. |
• Apr. 29, 2007 - re: Watch out! Non Agents on the loose! Some committing Fraud!
Last year I had an 'agent' write an offer on a house that he didn't show. The buyers were the same buyers from a couple months previous. We turned down their low ball offer at that time.
Since he never showed the house I looked him up on our MLS and State website and his license had lapsed.
My Sellers knew all along what was happening. We can to terms with the buyers and moved to the closing. At the closing table my broker told the 'agent' that he wasn't going to be paid because he wasn't licensed. He took it very well. Corrected the situation and was paid a month later.
The buyer went ballistic at the table - after closing-- screaming that her agent dissevered to be paid.