I am a Buyer and
Agent that is processing my short sale owned the property and did not have it listed as far as I can tell.
Is this legal?
Replies to This Discussion
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Permalink Reply by Smitty on
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Perfectly legal. Not every lender requires property to be listed, although most do. Even if they do, it's not a LEGAL issue, unless they intentionally misled the lender in some way.
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Permalink Reply by Marielle van der Burgh on
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I see a couple of problems with this. If house is not listed, how can agent show the bank that he/she got the best possible price, unless of course the owner/agent has had an appraisal done. Many banks want an "arms length affidavit" and it usually means no relationship between the parties involved when in this case the agent is also the owner. Even though it may not be illegal, I would think it would raise all kinds of red flags. Alex at CDPE was adamant in a webminar on fraud that agents should not handle their own short sales.
@Harry. Since the agent is the owner and there is no buyer agent involved, I cannot see the bank approving any commission. The Seller cannot profit from a short sale.
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Permalink Reply by Janis Schade on
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I'm a little confused. Who owns the property? The agent? In your reference, you state "your short sale". If you are not the owner, and not the agent, where do you fit into the process? As far as not listing a property, listing is a loose term. In Missouri, we can use something called an MLS Excemption. It doesn't necessarily limit the pool of people for marketing, just a different approach. If it's an investment property, they may already have a buyer.
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Guys, you're confusing LEGAL here. It's perfectly FINE not to list a property, if you have reason for doing so and because we don't know all the details here, let's wait for this person to elaborate a bit.
I've done several sales without listing them, as I could show the bank the seller made a reasonable effort to sell before I came into the picture with FSBO, Trulia, Craigslist.
Don't jump to conclusions. Let this guy jump back on and explain before we all think something is unethical, fraudulent...etc.
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I am the buyer attempting to purchase this property. The seller is a real estate agent that owns this property. I looked at the property after seeing a for sale by owner sign. When I wen to see the house and told the owner I was interested, she asked me to meet her at her office to sign the papers and make an offer.
I did this and she said she was or had listed the property which meant nothing to me since I dis not and do not know the rules for acquiring short sale properties.
I can not tell you anything more since this is all I have been invloved with.
I wish I knew how long it was going to take as I am going to go make an offer on another property that is being auctioned tomorrow. I will cancel my short sale offer (since I have nothing down) if I win the other bid and it is not upset within 10 days.
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William, Do you have a realtor working for you or are you driving around calling the number on the signs. I suggest you find an agent experienced in short sales.
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The seller is a real estate sales person.
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William, you need a party representing and looking out for you the buyer. The seller (also agent) is looking out for the seller (the agent) not you the buyer.
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I agree with William Griffin. You need representation. Don't sign anything else until you get it.
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I agree with the comments about representation. In fact, a lot of larger real estate companies do not allow dual representation for this reason. You may want to consider asking the agent to step aside and have someone else from the same brokerage represent you. From a short sale perspective, it's foolish for an agent to represent themselves anyway. Lien holders will not payout a full commission because the agent is the owner. They would have been better suited to have someone else handle the sale and negotiating.
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