Let me see if I’ve got this straight… - Posted by soapymac
Posted by soapymac on June 07, 2000 at 13:20:28:
Seller wants to sell, and has property already listed with another agent. Your investor wants to buy wholesale and flip it to retail BEFORE his original deal closes OR simultaneously with his purchase. Is that about right?
'Cause if it is, I have two beautiful, well-maintained bridges spanning the Cape Cod Canal your investor may want to purchase with his profits.
Seriously, though, have you considered the matter of agency in the transaction? For this to work legally, you would have to represent yourself as a BUYERS AGENT. If you were involved in this transaction as a seller’s agent, you would be in violation of your fiduciary responsibility to the seller.
Let’s suppose, though, that you ARE a buyer’s agent in the purchase transaction. What type of listing agreement would you have with the investor to SELL the property? What I’m asking is, would your broker allow you to switch hats in the middle of a transaction? There may be a fiduciary liability there that your broker would not be willing to accept.
What happens if you are in the position of a disclosed dual agent through this transaction? Does Texas RE law allow that position?
Lastly, how is your investor going to be able to list the house through MLS for his end of the sale WHEN HE DOES NOT OWN IT? And even if he was able to list it, is he going to want to pay TWO commissions to buy and sell ONE house?
I’ll leave myself open to a different “take” on this from someone else on the board…but I think your investor would rather buy my bridges.