A real estate agent forms an LLC. While previewing the new listings on the market the agent sees a bank-owned listing priced to sell quickly. The agent writes an offer on the property in the name of the LLC. The bank addendum prohibits agents from purchasing bank-owned assets. The agent's LLC buys the property. Is going about it this way ethical or unethical?
I vote unethical. Also easy to see through. Were you also the agent that submitted the BPO? There's a reason for the bank trying to prevent a conflict of interest.
If you don't think it's unethical, please see the multiple thread titles dealing with self-interested agents and shady activity. You sound like yet another one, Whoopy!
As an officer of the corporation, you have a duty to disclose your relationship. Some seller's will still consider your offer, and allow you to waive your commission.
Ones that do not, well that is your chance to be a buyer's agent for someone else.
No @Steve Vaughan I was not part of the deal lol I just heard about it secondhand from a associate of mine and was wondering peoples opinions on the transaction. I'm actually preparing to take my nat and state in a couple of weeks to obtain my license! And@Charles Socci I agree that an open and honest relationship with people in general would be best.
Oh shoot, I'm sorry @Michiel Hart . So much going on today with questionable RE professional activities. Thanks for the clarification and best wishes!
@Michiel Hart Do you know what bank wouldn't allow agents to buy the property? I have never heard of agents not being allowed to buy although I was once denied my commission on a purchase for myself from a bank.
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