Arms Length Transaction
I have taken a short sale listing from a real estate agent who is out of the business.
She had a tenant in one of her properties who moved out. Then he called her, asking her to be his agent in finding a home to purchase, about a year after he moved out of her rental.
She is out of the business and referred her clients to another agent about 6 months ago. Her former tenant/client wants to buy her short sale property.
He is not family, not a friend and not a business associate. EXEPT that she was his landlord, then real estate agent. And now the Seller.
I am thinking that this needs to be disclosed to Chase, the ss lender, just in case. But I would love some feedback.
Replies to This Discussion
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Permalink Reply by Marcy Moyer on
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I would just ask Chase if this is a problem or not.
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Permalink Reply by James ferebee jr on
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This is no problem and since there is no relations it would not need to be disclosed.
I had one bank say that as long as it was not a family member of any kind this would be ok.
Someone sent me this at one time...
See below...
This concept also comes into play in short sale transactions as many of the banks will require that the parties sign an affidavit of arm’s length transaction. That is, all parties must attest that the transaction has been negotiated by unrelated parties, each of whom is acting in his or her own self-interest and that the sales price is based on the fair market value of the property. The banks simply want to make sure that the buyer and seller are not related family members, or business associate,s and that the bank is getting what is fair market value for the property being sold short.
Jim
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