Can a realtor mark up my deal to his clients?

Question

Jean Bolger · Answer

Bill Gulley did a better job than me at describing what would make me potentially uneasy about such a transaction. I was assuming that the final buyer was already a client of the realtor. If so, the % or flat fee for service is really a much cleaner way to do the deal.

Steve Babiak · Answer

There are a lot of realtors who are also wholesalers, just like the OP. And they are just doing the same thing that the OP is doing.

Steve Babiak · Answer

Isn't that what you did with your seller? Did you think that was OK?

Jay Hinrichs · Answer

Bill Gulley

agree on all your points.

Jay Hinrichs · Answer

Bill Gulley

I this scenario I don't think the Realtor has done anything wrong.. If what is being described is simply

1. wholesaler got a property under contract

2. Realtor is going to buy it for X and Realtor on the purchase contracts divulges license status.

3. Realtor then goes into contract with buyer subject too the property closing and divulges he license status to the buyer.

sounds like a triple escrow ... End buyers funds will be used to purchase the property from the original seller.. wholesaler gets paid and then Realtor gets paid.

But really need more specific information on the transaction to really know whats going on.

Bill Gulley · Answer

The catch 22 is having a listing agreement in the mix with any agency, a Realtor may buy on his own account, but jacking the price for the seller isn't the way to do it without taking title unless it's a Realtor fee as mentioned. That is where you can get into net listing issues. And, you're correct, we don't have enough information to know what's going on which is usually the case in forums and our speculations as to what might be going on.

Bill Gulley · Answer

And such Realtors need to understand "Net Listing" arrangements as all may not be good at all. Sounds like that's what the Realtor could be doing if there is a Realtor/broker contract involved. It's usually best to convert the fee to a % of the sale price as a commission or charge a flat fee as a Realtor, disclosed to all necessary parties. Disclosing that you're doing something does not give you leeway to do something wrong, it's still wrong. :)

Jean Bolger · Answer

yes, @Jay Hinrichs I'm probably overthinking it! And perhaps there are some slight differences from the Colorado rules.

Glenn Bravy · Answer

@Jean Bolger

Right. I was wondering about fiduciary responsibility. It seems that everything is being disclosed properly.

He's creating an intermediate position between me and the buyer so that he makes his fee.

Jay Hinrichs · Answer

@Jean Bolger

this agent may have a buyers brokers agreement. Or is just flipping it.. As long as they disclose they are a broker to the seller and to the buyer then all is good, especially in this case were the seller is a bird dog or flipper,

Can a realtor mark up my deal to his clients?

Can a realtor mark up my deal to his clients?

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