This question jumps into the realm of license laws, but with a little twist. This came up the other day.
Company A owns a 50% interest in Company B. Company B owns a 100% interest in a real estate development. In Ohio, there are license exclusions that allow direct employees of owners of real property to manage without a licence.
Can employees of Company A manage property owned by Company B in Ohio? Can they do it in your state?
The ruling from the court should come in next week. What do you think it should be? Why?
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
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That's a very interesting scenario Rich.My guess would be "yes they can". My logic is this. The reason they don't have to be licensed is because they are managing property that they own albeit 50%. If company B buys a piece a property then company A would own 50% of it since they are 50% owners of company B, therefore, they are co-owners in the developement and can certainly hire employees to sell it. In florida they would have to be salaried employees.