its probably that they will come after the agent if there is fraud that the agent was ivolved in i don't think they could legally come after the agent for any deficiency because the note is between the seller and the investor or note holder.
Maybe someone can educate me as I'm still gathering information and learning about the real estate profession. I'm going to ask a dummy question, wouldn't this issue be covered under errors and omission coverage? Or, is Mary referring to criminal acts? Errors and omission insurance seem to be a standard coverage in other professions. Does real estate practice require this type of coverage? Maybe Mary can add more details about this approval letter also.
Richard, it may be covered in E&O providing that the agent has E&O to cover a short sale. I wish Mary Lou would come back and clarify this statement.
If I were to venture a guess, she probably heard someone tell her that the banks are coming after agents as I have never seen an approval letter that stated any recourse to the agent. Afterall, the contract is between buyer and seller and in my state I broker the transaction through transaction brokerage.
I think you need to provide the context in which this was said. Otherwise all of us are putting in what we think a bank might have said. Sounds like you have a lot of people interested in answering the question once all the data is provided. :)
Replies
Mary Lou, can you put on your post exactly what the letter says?
Even if its a reference to 'arms length transaction', they (bank) would have to be able to prove it.
How much would that cost? How long would it take? Was there a violation of an actual law or just a bank policy?
Hmmm...I think banks are going to make alot more money with their new Debit card surcharges than attempting to pursue this nonsense.
Guys,
Maybe someone can educate me as I'm still gathering information and learning about the real estate profession. I'm going to ask a dummy question, wouldn't this issue be covered under errors and omission coverage? Or, is Mary referring to criminal acts? Errors and omission insurance seem to be a standard coverage in other professions. Does real estate practice require this type of coverage? Maybe Mary can add more details about this approval letter also.
Richard, it may be covered in E&O providing that the agent has E&O to cover a short sale. I wish Mary Lou would come back and clarify this statement.
If I were to venture a guess, she probably heard someone tell her that the banks are coming after agents as I have never seen an approval letter that stated any recourse to the agent. Afterall, the contract is between buyer and seller and in my state I broker the transaction through transaction brokerage.
Arms lenth is a whole different topic though
Hi Mary Lou,
I think you need to provide the context in which this was said. Otherwise all of us are putting in what we think a bank might have said. Sounds like you have a lot of people interested in answering the question once all the data is provided. :)
We have not once seen or heard of this being the case.
Mike Netzel
Keller Williams Realty Pittsburgh