I truly need to know if anyone would be comfortable representing both sides of a short sale. I thought that putting a request on here might be a good way to get a response from a wide variety of people, but at this point, no one has been willing to comment on my other post. Please, I humbly request that at least a couple people reply so I can have a better idea. Thank you so much
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Kristin,
this is an issue where there is definitely no "one size fits all" answer. I would consider representing both sides but it would depend a lot on the situation, including, how the principals feel about dual agency, and the potential for conflicts between both sides.
It is also possible that in some circumstances it would be better to represent the seller, and file a notice of no agency with the buyer, or to have another agent represent the buyer, so that roles are clearer. You should probably have this conversation with your broker, legal council, and E&O carrier, because the ramifications are different by state.
Also, some banks, investors, or MI companies have policies that reduce compensation significantly if there is dual agency involved. It may not make business sense to increase risk while getting paid like you only had one side.
Bob - I'm in Oregon & it's more in regards to purchasing short sales as an investor - not my own purchase though. If you "do it all the time" do you have a listing agent on your team that takes care of the listing side, and a buyers agent on your team that does the buyer's side?
Jim - Thank you for your input. This is definitely a learning and growth opportunity for myself. Your last comment about increased risk with less compensation makes a lot of sense.
You wrote:
"in regards to purchasing short sales as an investor"
I hope you are not the buyer, the listing agent and the buyers agent. . the bank most likely will not accept that.
If a different buyer, just disclose, disclose and disclose to all parties and the lender will give yo the answer you are looking for. . .no one can do that in this forum 100%
You should be representing the seller, assisting the buyer and pushing the bank. .simple enough
One more thing. . most important one . .check your local state laws regarding dual agency. .
Good luck
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