Update: Faira has reached a settlement with the Washington State Department of Licensing. Under the deal, Faira agreed to hold its buyer fee in a trust account until Faira's money-back policy expires, said Faira CEO Kamal Jain. The company was not required by the regulator to make any other changes, he added. 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...
- 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.
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