Selling Agent lying about having a tenant.

[Ben Mandelstein]

Hello Everyone,

I am fairly new to real estate investing and bigger pockets. I am in the process of buying my second property in Texas. The property is a duplex and when I first saw the property the listing agent only showed me one side but told me that the other side is rented out at $850 a month until the end of September. 

I made an offer on the house and came to agreement with the seller but then once I was under the option period(Something we have in Texas) I got an inspection. When I saw the other unit that was supposed to be "occupied" it was completely empty and showed no signs of anyone living there anytime recently. This was just a few days after the listing agent told me it was under a lease tell the end of September. 

Is there anything she did illegal or anything I should do about this? Unfortunately I never got it in writing but it seems like she was purposely deceiving me. 

[Russell Brazil]

Originally posted by @Mike Cumbie:

I will respectfully disagree with @Michael Plante, When I list I recommend people go get an agent. There is no bigger threat to an agents license than one side of a double ended transaction "having the feeling" you were not 100% on the up and up. Not only can it cause big problems with a reputation you want to keep for the length of your career, it also can get regulators sniffing around your door. The most common complaint from buyers is "The agent never called me back". That's because they want you to go get an agent.

As far as who is being represented in NY, who pays (or even if there is no pay) has zero effect on your legal responsibilities to your principal. It is well documented and litigated that our responsibilities to our client have nothing to do with if you get paid and by whom. We have "agency disclosure" forms we are required by law to give out at the first substantive contact, clearly stating who we represent. I have never filled out a purchase and sale contract without having that form included, stating I represent the buyer (or seller when they insist on going through me). I know Florida has a form of transaction agent, but we don't in NY so their agency laws may very.... and Texas may be a whole other beast.

Best of luck in your transaction. 

Ill let an unrepresented buyer give me an offer. We do not have dual agency in MD, but in DC and VA we do. However I will not represent the buyer...I will only represent the seller. So I work against that buyers interest. 100% of the time that buyer will pay more for that property and not have common protections in the contract by coming straight to me instead of getting their own agent.

I actually feel a legal imperative to do this so if the real estate commission reviews my records they can see Im completely working in my clients interest and not trying to get double the commission.