How Novation Works

A novation opportunity generally involves an investor who is already under contract with a homeowner and has authorization to work with a licensed real estate professional to pursue a retail sale.

The homeowner typically remains the legal owner until closing, while the investor manages the transaction under their agreement with the homeowner.

If the Realtor and their brokerage determine that the documentation and transaction meet applicable legal, brokerage, and MLS requirements, the property may be listed and marketed to retail buyers.

In simple terms: the investor brings the opportunity and supporting documentation, while the licensed Realtor independently handles the appropriate listing and retail sale process.

• Warm opportunities. The investor has already established the relationship with the homeowner.
• Retail transactions. Opportunities may be marketed to traditional retail buyers through the MLS when appropriate.
• Less prospecting. Focus on the listing and sale instead of finding the seller.
• Supporting documents provided. Relevant contracts and authorization documents can be shared with the matched Realtor for review.

1. 1
   Investor posts an opportunity.

   The investor submits property details, proposed pricing, proposed agent compensation, and supporting documents.

2. 2
   PocketLis reviews the submission.

   PocketLis reviews the account and submitted information for platform purposes. PocketLis does not determine whether the documents legally authorize a listing.

3. 3
   Local Realtors see the opportunity.

   Licensed real estate professionals serving that market can review the opportunity and express interest.

4. 4
   Investor connects with a Realtor.

   The investor selects a Realtor and additional property information and documents become available to the matched parties.

5. 5
   Realtor reviews and proceeds.

   The Realtor independently confirms all required seller authorization, brokerage approval, MLS requirements, disclosures, and documentation before marketing or listing the property.

6. 6
   Work the retail sale.

   If everything is in order, the Realtor handles the appropriate listing, marketing, offers, and closing process while coordinating with the investor.