Posted by GJ on March 10, 2000 at 20:47:52:
Do you disclose in any of your ads?
Agent/REI Combos? - Posted by Charles
Posted by Charles on March 10, 2000 at 03:31:11:
I would like to hear from any licensed re agents also doing investing. I’m a re agent in SW Florida and my questions deal with disclosure. Aside from the obvious of disclosing that I am an agent on an offer or contract what else do you do? For instance:
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If you find a junker and the only way to contact the owner is by mail, do you state you are an agent in the inital letter?
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If a seller is willing to sell to you below FMV because he is really motivated, do you have to give him a CMA (and get him to sign it) just so he won’t roll over on you afterwards?
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To what extent do you go to prevent the perception, by the courts if it comes to that, that you took advantage of an unsuspecting civilian?
I know the laws are different in every state, but all responses would be appreciated.
Thanks.
Re: Agent/REI Combos? - Posted by Steve C., Houstonal-pc.org
Posted by Steve C., Houstonal-pc.org on March 12, 2000 at 10:52:41:
I am an agent and have asked the same question, since I work with investors and want to invest myself. Always disclose at the first meeting and get them to sign your state’s forms. Document the conversations thoroughly. Also make it clear (in writing) that you in no way represent the seller, and that the seller is fully aware of the FMV of the property. If you plan to buy and hold, you will probably be OK. The most dangerous transaction is to buy a property below market and flip it to a buyer who is waiting in the wings. If you already have a buyer who will pay more for the property you are buying, both parties will probably sue you big time.
Disclose, Disclose, Disclose… - Posted by David(Ca)
Posted by David(Ca) on March 10, 2000 at 09:48:25:
Yes, because you are an agent you must:
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Disclose you are a real estate agent at the initial contact, letter or in person, AND it’s prudent (best to be loaded with disclosure forms should you ever be in court) to add that you have knowledge superior to their’s, this shouldn’t offend them or jeopardize the deal in any way. You are a professional after all, that highly sought after license that only a small fraction of the adult US popluation could ever hope to achieve says so.
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Disclose the FMV, this number is not at all subjective. Even if you were off a little, let’s say you were a little high in your estimate, the seller would always make up the difference by rushing you a check should an error ever be discoverd in your favor.
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Oh yes, the unsuspecting civilian, since they have nooo idea what the market value is, have never looked at another house, never talked to another agent or homeowner and are slightly retarded, this has been tested in court many times, they don’t have to prove ANYTHING, if they are simply unhappy with the deal, YOU, with the superior knowledge who NEVER makes a mistake on the FMV are required by law to make up the difference between what you paid and what they FEEL is the FMV, it’s ILLEGAL to do otherwise.
Happy investing …
PS. If it’s not obvious, this is a joke, I am a broker and believe that the only disclosure required is your license status anytime before they become obligated on the contract, I usually put it in the purchase contract with VERY little said, if anything at all. And I also believe I have all the rights of a non licensee regarding making a profit and buying below FMV or I would give up my license in a california second (or is that a New York second).
Re: Agent/REI Combos? - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on March 10, 2000 at 07:08:45:
Charles, The answer is yes. Always disclose, and for me if there is doubt I disclose. The disclosure forms are silghtly different from your state and mine. I use mine when we start to sign documents then I know it has been done in a timely way, and I have a copy. Hope this is helpful…ED