A for-sale-by-owner (FSBO) startup has been charged with operating as an unlicensed brokerage by a state regulatory agency. The Washington State Department of Licensing has notified Kirkland, Washington-based Faira that the agency planned to serve the company with a cease-and-desist letter for conducting certain activities without a broker’s license, including negotiating funds in connection with transactions. [gview file="http://www.inman.com/wp-content/uploads/2016/11/JAIN-KAMAL-FAIRA.pdf"] Faira’s CEO maintains Faira follows all applicable licensing laws. The case shows how startups offering innovative real estate services can still run into regulatory hazards. It was sparked by brokers and consumers who filed complaints. Faira’s business model Faira’s free listing option includes traditional FSBO services, such as photography, for sale signs and lockboxes. But unlike many FSBO services, the free option also comes with an MLS listing posted by its lic...
- Faira, an FSBO startup, has been charged with operating as an unlicensed brokerage by a Washington state regulator.
- The regulator has threatened to send a cease-and-desist order to Faira for alleged activities such as holding funds in connection with a transaction.
- Faira maintains that it follows all applicable licensing laws, noting that it holds a broker's license through a subsidiary.