In order to broker a deal (buy or sell side), are there:
1. Any certifications needed by any state or federal body (SEC for example) or
2. If the transaction involved interest in real estate (the sale or lease transfer), is a real estate license needed"
Wondering if the above is contingent on deal size too. If I'm working with someone who is using the term(s)/language "broker" but has none of the above, is that a red flag?
Thanks in advance for any insight/advice.
What's Legally Needed to "Broker" a deal?
by a searcher from Kennesaw State University - Coles College of Business
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1) Anyone can broker a business in either an asset or a stock structure if the seller's reported EBITDA is <$25 M or sales are <$250 M provided the buyer is "active" after the transaction. There are few more conditions, like the broker cannot be a party to financing the buyer except commercial lenders, the criminal record, and more.
2) The new law does not change any RE laws at the State level. As mentioned above, 17 states require RE license for a sale of RE. To my knowledge, lease transfer is not a RE transaction unless you collect commission.
3) As ^Searchfunder member said, the laws apply to the "activity" not to the form of engagement.
4) There are exceptions for a "finder" to get paid since###-###-#### They have not changed.
5) The new law applies to buy-side or sell-side brokers.
6) Trade associations are working with NASAA to harmonize all State level securities regulations. NASAA is an association of all State regulators.