Equity Skimming and Washington State law
BP Community,
Ever so often we come across investors whose tactics don't give us the "warm and fuzzy". While each state has its own legislation and case law, it is important that we all, in our continued efforts to source great "deals", maintain an ethical and moral stance. Loopholes in fiduciary responsibility do not justify predatory methods. And in the fallout of the real estate crash, perceived wrongdoing on the part of investors is taken seriously, and can paint our entire industry in a negative light. When working with a potential seller, ensure they understand the importance of third party review. While this may seem counter to "scoring" the best deal, it will keep us all out of hot water, legally, and otherwise.
Here are some resources related to Washington State law. I am eager to hear of anyone who has seen changes/restrictions/guidance in Washington related to sourcing off-market deals, as it is a constantly evolving topic.
WA Supreme Court Decision, 2/6/14, Jametsky v. Olsen, No. 88215-1
http://rowleylegal.com/washington-state-investors-buying-distressed-residential-properties/
http://souderslawblog.com/?tag=distressed-property-conveyances-act-washington
http://www.kolerlaw.com/2008/06/11/washington-distressed-property-law/