Do Business Brokers Need a Real Estate License?

Whenever the sale of a business involves the transfer of real property (whether an ownership interest or leasehold interest), a real estate license is required. This is the case in every state in the country. While certain states explicitly mention in their statutes that business brokers are required to obtain a real estate license, a real estate license is still required in all other states whenever real estate is part of the transaction. If you don't have a real estate license and your transaction involves any aspect of real property, the real estate regulatory agency in the transaction state can take enforcement action against your unlicensed activity. In addition to regulatory and civil issues, most states classify the unlicensed practice of real estate as a crime ranging from a misdemeanor to a felony. As you can see, performing real estate brokerage activities in a state where you're unlicensed, no matter how slight, carries significant risk.
We assist business brokers who want to engage in the sale of a business outside of their home state of licensure when the transaction involves real property. We service a wide-range of property types including, but not limited to:
  • Agriculture
  • Automotive & Boats
  • Beauty & Personal Care
  • Building & Construction
  • Child Care
  • Commercial Real Estate
  • Communication & Media
  • Education
  • Entertainment
  • Financial Services
  • Food & Beverage
  • Health Care & Fitness
  • Insurance
  • Manufacturing
  • Miscellaneous
  • Pet Services
  • Recreation
  • Retail
  • Services
  • Technology
  • Travel
  • Transportation
  • Waste Management
  • Wholesale
License portability laws, which govern the ability of brokers licensed in one state to engage in transactions in another state, vary across the country. In nearly all states though, brokers can engage in transactions in another state, as long as the out-of-state broker enters into a written co-brokerage agreement with a broker licensed in the transaction state (commonly referred to as a "broker of record"). When you select us as your broker of record, you'll still have the autonomy to manage your transactions as you normally would. We simply provide the oversight as legally required by the transaction state. We also provide all of the necessary transaction support, including; state-specific forms & disclosures, clear guidance on your permitted activities, state-specific checklists, and a highly responsive and experienced broker with decades of experience. Whether you're affiliated with a small or large firm, involved in many out-of-state transactions or just one, we can help you with your out-of-state transactions without you having to incur the time, expense, and hassle of becoming licensed in multiple states. Note: In order for us to assist business brokers, you must be licensed as a real estate salesperson or broker in at least one state.

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