Hosting own properties, thinking about expanding

Contacting the NC Real Estate Commission makes sense.

It appears to me – though I’m not qualified to give legal advice – that, strictly speaking, hosting properties in NC would require a real estate license, likely a broker’s license.

I say that because NC law says it’s unlawful to act as a broker without a broker’s license, and defines ‘broker’ as one ‘who leases or offers to lease’ . . . ‘or rents or offers to rent’.

I say ‘strictly speaking’ because my impression is that many people act as host for others without a real estate license and I’m unaware of widespread enforcement actions. Still, operating a hosting business without the required license(s) could put your business in jeopardy, especially in the event of litigation, say by a guest where the lack of a required license could be used to impeach your credibility.

Also, the North Carolina Vacation Rental Act contemplates licensed real estate brokers when it says in its 'purpose and scope of act section: “Rental transactions conducted by the owners of these residences or licensed real estate brokers acting on their behalf . . .” in Section 42A-2.

I don’t think you should rely on a response on this or any other forum.

You need to hear from the NC Real Estate Commission; if they say ‘no’ it would be great to have that response in. writing. ideally, if you choose not to obtain a license, you’d receive written advice from a licensed local lawyer who specializes in real estate.

You might find these posts and threads interesting generally: here, here. You might want to search the forum for similar topics.

I suppose that there’s an argument that if the property owner were the Host and you the co-Host, and the Host both enabled instant booking and approved all request-to-book (RTB) requests that you would be involved only in property management, not in renting. Many jurisdictions require a real estate license (though not a broker’s license) for property management. I didn’t look further into NC law to see what NC’s requirements, if any, are to manage real estate property.

Good luck in your business.

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