Real Estate Investor · Glendale, AZ · Member since 2009 · 134 posts · 5 votes
Ok so if a homeowner comes to an agent to SS. An agent that I'm already working with. Can that agent just go ahead and represent me and the homeowner would be unrepresented? I just spitballing here, I haven't run this past any of my Realtors yet. If yes then this should take care of the issue of conflict of interest that I'm running into when soliciting new agents.
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
16y
I would switch it around and have the agent represent the seller and you be unrep'd
The agent shouldn't have a problem with dual rep'ng if they disclose and the seller doesn't have a problem, certainly you don't since the lender is typically paying the A-B side's commish anyways.
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
16y
I would switch it around and have the agent represent the seller and you be unrep'd
The agent shouldn't have a problem with dual rep'ng if they disclose and the seller doesn't have a problem, certainly you don't since the lender is typically paying the A-B side's commish anyways.
Investor · Melbourne, FL · Member since 2008 · 90 posts · 39 votes
16y
I agree with Nick. If the homeowner goes to the realtor you are working with, then the realtor should represent the homeowner, not you. But, remember that if this property is a short sale, then getting the highest price for the property is not what the realtor is obligated to do.
The realtor is obligated to represent the best interests of the homeowner. Contrary to popular belief, that does not mean getting the highest offer. It is easy to show that referring the property to you without even putting it on the MLS is in the best interests of the homeowner, as long as you have a track record of closing deals (and getting the deficiencies waived).
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Originally posted by Caleb Whitney:
Ok so if a homeowner comes to an agent to SS. An agent that I'm already working with. Can that agent just go ahead and represent me and the homeowner would be unrepresented? I just spitballing here, I haven't run this past any of my Realtors yet. If yes then this should take care of the issue of conflict of interest that I'm running into when soliciting new agents.
Hi, there is a basic legal concept referred in agency law that a servant can only serve one master. When representing a client you can't simply give them notice that you now have a new or equal master. A Realtor in this situation must either step back and provide another agent to represent the buyer as they already have a listed agency relationship concerning that property or they can act as a transactional broker. In a transactional agency relationship, the Realtor may only act to facilitate the transaction and may not represent either party, meaning that they can not assist in negotiations or advise on any matters other than those functions necessary to carry out the transaction. In a short sale, the highest price yields the largest payoff on the obligation owed by the owner and reduces any deficiency which may be found to be due from the borrower, if any, so the Realtor has an obligation to act in a manner to reduce the client's potential liabilities and the degree that credit will be effected arising from the writeoff.
Investors need to beware of the laws of agency when dealing with Realtors, especially when they are not represented. Everything you say to a listing Realtor in private, is still the same thing as speaking to the seller. So, if one were to say "I won't give more than 60K, but I'm going to offer 55K" guess what the counter offer will be? The Realtor is obligated to tell the seller that the buyer said they were willing to give 60K. Good Luck, Bill