NEED HELP! Dual agent might be owner of the property

NEED HELP! Dual agent might be owner of the property

Investor · Chicago · Member since 2016 · 7 posts · 4 votes

Hi All:

I am using the seller agent as my buyer agent. The owner of the property is an LLC. The taxpayer of this LLA is the seller on our agreement. However, from some information resource, we found out the seller agent may be a member of this LLC, i.e. he is also the owner the property. I did some google search but couldn't confirm it.

According to the law, the seller agent should disclose his interest in this property. 

My questions:

1: What is the consequence if the seller agent doesn't disclose his interest in the property?

2: How to confirm whether the seller agent is a member of the LLC?

Thank you!!

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Investor · Medford, NJ · Member since 2015 · 3 posts · 2 votes
10y

He can't be a dual agent if he has an ownership interest.  He can only be a seller's agent because he can't provide the neutrality required of a dual agent.

You are right to be concerned.  

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  • Investor · Union, NJ · Member since 2011 · 838 posts · 295 votes
    10y

    How about just asking them outright?

    If they did not disclose their interest there would be some kind of legal recourse I would imagine. You could check with an attorney who practices law in your state.

    Chris

  • Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
    10y

    What state is the LLC out of? Go to that states secretary of state website and look up the LLC. You can also ask the broker directly.

    By the way, a dual agent cannot give you any advice at all. The only thing they can do is fill out contracts and provide to you comps. 

  • Real Estate Broker · North Richland Hills, TX · Member since 2013 · 1k+ posts · 607 votes
    10y

    A Realtor would be required to disclose his interest.   If not a Realtor, state law might require it.   At any rate, it's the right thing to do.

    1) Why worry about his consequences?    You s/b focused on how the transaction will impact you?

    2) Ask.   It may be difficult to discover if he's not an officer.   

    There's nothing wrong w/ selling your own property, but you s/b transparent about it.

  • Investor · Medford, NJ · Member since 2015 · 3 posts · 2 votes
    10y

    He can't be a dual agent if he has an ownership interest.  He can only be a seller's agent because he can't provide the neutrality required of a dual agent.

    You are right to be concerned.  

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