Out-of-state listings dispute draws lawsuits

California broker takes on Nebraska, Alaska regulators

Real estate brokers who are working with sites like ForSaleByOwner.com to place flat-fee listings from around the country on Realtor.com may find themselves at loggerheads with state regulators if they are accepting listings from states they are not licensed in.

Regulators in Nebraska and Alaska have issued cease-and-desist orders against a California broker who advertised properties from those states on Realtor.com by placing them in a multiple listing service (MLS) or services in another state.

In a July 20 cease and desist order, the Nebraska Real Estate Commission maintains that only licensees are permitted to negotiate the listing, sale or purchase of property in the state, or assist in procuring prospects.

The broker, Leslie Rae Young, sued the Nebraska Real Estate Commission in federal court on July 29. Young claims recent changes to the Nebraska’s licensing laws are unconstitutional, and that the state has no jurisdiction over her.