Buyer's Agent as principal in short sale

Hi, Has anyone run into any issues either getting an approval, or getting a commission paid as a buyer's agent representing themselves as principal in the purchase of a short sale?

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Permalink Reply by Bryant Tutas on April 28, 2011 at 1:03pm
Nathan getting the approval is probably not an issue. Getting paid will be. Investor normally will not pay a commission to a party to the contract. Have another broker do the deal for you for a referral fee.
Permalink Reply by Cal Yoder on April 28, 2011 at 2:29pm
Yes, I just had the same problem. But my question is, how does one change now in midstream. I can have someone else write the offer, but won't we just have to start over now and be back to another 90 day wait period.
Permalink Reply by Cal Yoder on April 28, 2011 at 2:51pm
Since investors will not pay this to agent as principal, but would pay it to agent if representing someone else, would investor consider lowering sales price by commission amount. Investor still nets same amount.
Permalink Reply by Bryant Tutas on April 29, 2011 at 12:29am
Cal. It's certainly worth asking. It may be too late on this transaction though. You could just withdraw and try again with anew lower price or another agent doing the deal.
Permalink Reply by Jeff Payne on April 29, 2011 at 2:27am
Is the buyers agents name on the contract or the brokers name? Could make a difference
Permalink Reply by Paul Antonelli on May 1, 2011 at 12:49am
  As soon as the bank gets the signed Arms Length Transaction agreemnt form it's game over anyway. I aways tell agents that want to buy, you won't get a commission. And I tell them about the ALT form, and they agree.
Permalink Reply by Wendy Chen on May 1, 2011 at 6:19am
Is it legal to do that?  My broker told me it's not legal to do this way since I actually get the commission.

Bryant Tutas said:
Nathan getting the approval is probably not an issue. Getting paid will be. Investor normally will not pay a commission to a party to the contract. Have another broker do the deal for you for a referral fee.
Permalink Reply by Bryant Tutas on May 1, 2011 at 6:59am
Wendy. I am not aware of any law anywhere that would prohibit an agent from receiving a commission on their own transaction. This is not a legal issue. It's a lender/investor guideline issue. Now having said that, it could very well be a legal issue if you agree in writing that you are not getting a commission and then take one anyway. The lenders are making up their own "laws" as they go along. That's where the problems come in.
Permalink Reply by John Juarez on May 3, 2011 at 5:56pm
I have seen more than one arms-length-transaction form from the lender who is approving the short sale the stipulates that an agent acting as buyer or seller in the transaction will not be paid a commission. The lender requires that buyers, sellers and their agents sign the arms length transaction form and have their signatures notarized.

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