Online Real Estate Site Sues State of California Over Broker Licensing Requirements

Recently, the New York based Corporation, ForSaleByOwner.com and its Sacramento-based magazine affiliate, commenced an action against the State of California seeking to declare portions of the State's real estate licensing laws unconstitutional for allegedly restricting free speech. In accordance with California's licensing laws, companies who provide certain real estate services are required to obtain a state broker's license. The ForSaleByOwner.com website is designed to allow its customers to buy and sell real estate without the need for agents, thereby eliminating commission fees. According to the company, it does not engage in the buying and selling of real estate; rather, similar to newspaper classifieds, the website merely collects fees for listing homes and properties for sale. On this basis, the company asserted that it should not be required to obtain a broker's license, alleging that requiring a company to obtain a license prior to publishing property information was an unconstitutional restriction of free speech. For additional information, visit: http://www.latimes.com/technology/la-fi-license15may15,1,7545853.story http://www.insightmag.com/global_user_elements/printpage.cfm?synid=87261 Summary by: Lenni Carreiro