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bunnynose4, Real Estate Pro in Beverly Hills, CA

In CA, do we have to present an offer to the Seller from an unlicensed agent representing a Buyer?

Asked by bunnynose4, Beverly Hills, CA Thu Oct 10, 2013

We do CRE in CA and recently received an offer from an unlicensed individual representing a Buyer on a $15M deal. The offer was written very poorly but is above asking, all cash and a 7 day close. This property is a complex development deal and the asking price is way over market comps which made the offer strange. We have received another offer from a VERY well qualified developer who has quite a bit of time built in for due diligence as there is a zoning issue. The asking price absolutely does not make any sense with the current buildings that are on the property. The "proof of funds" received on the odd offer is not verifiable, the phone number is the cell phone of the buyer. The unlicensed "agent" has since dropped that buyer and now wants to submit another offer from another buyer. Do we have to present this new offer to the Owner? The Owner is very motivated by price and once they see this "too good to be true" offer, it will hinder negotiations with a real buyer.

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9
I can appreciate your concerns..however; we are obligated to present all offers to our sellers. I would voice my concerns about this particular offer, and what makes you suspicious. The decision whether to move forward or reject the offer is up to seller only.
Good luck to you!
Best,
Susan Bo'ur
Realtor/Coldwell Banker
Susan@BeverlyHillsLuxuryFlats.com
1 vote Thank Flag Link Fri Oct 11, 2013
Bunny,

Unless your seller has specifically told you not to present any offer within a certain parameter. It is your obligation to make seller aware of any offers submitted.

That being said, you can give your guidance and opinion as to the validity of the buyer, the buyer's representation and buyer's verification of financial ability.

Mario Pinedo, CCIM
Mortgage Banker
CS Financial
http://www.HomeLoans.LA
http://www.HouseLoansLosAngeles.com
http://www.CondoLoansLosAngeles.com
http://www.Facebook.com/HomeLoans.LA
BRE Broker 01118365
NMLS 1029116
Office 424-249-7434
Cell 415-269-6249
mpinedo@csfinancial.com
Twitter @mariopinedo
1 vote Thank Flag Link Thu Oct 10, 2013
Mario Pinedo,…, Real Estate Pro in Beverly Hills, CA
MVP'08
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You must present every offer. However in presenting that offer be sure to outline for the seller all the red flags that you mentioned above.
0 votes Thank Flag Link Sat Oct 12, 2013
Here is my two cents:

Since you work for the seller, it is your duty to present any and all offers to them. Licensed or unlicensed is irrelevant - if someone submits an offer on a cocktail napkin you owe it to your seller to present it.

With that being said, you are also getting paid buku bucks to guide your seller through this process. You need to explain the pros and cons and if it doesn't pass the smell test then be honest with them. If the offer is poorly written you could advise them to request a cleaner offer or submit a counter with conditions.

I get what you're saying that you have a seller who may go against your wishes and then try and blame you later. That's a valid concern, but as the professional in this situation you need to figure it out. That's not necessarily the "easy" way, but you have to be above board with your customer and make sure you don't conceal things from them. That can come back and bite you too!
0 votes Thank Flag Link Fri Oct 11, 2013
Bunny,
You may have found "THE" buyer every seller is looking for. You kow, the one with more money than sense. Make absolutely certain the buyer and has skin in the game. As Bill stated and you perceive, there's a few red flags to be cautious of, but, don't walk away from someone throwing money at you.
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It has been my experince such offers are intended to remove the property from the market and ALL the negotiations take place afterwards. This is what you must and can avoid.
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I would begin with requiring the buyer to obtain professional or legal representation. You do not want to be forced to be responsible for both sides of this transaction when the buyer side has proven to be ....either goofy or cunning.
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You are right, if your seller bites on this bait, it will hinder real buyer offers, which you may have one in the works already with a known developer. Make the renegade buyer complete due dilengce beforehand and submit a contengency free offer. If you have a contengency free offer already...make it work. THIS IS WHY WE PAY ATTORNEYS.
0 votes Thank Flag Link Fri Oct 11, 2013
There are many "red flags" with your unrepresented offer. I've come to appreciate that if something "looks too good to be true....."

Most listing agreement provide verbiage that clarifies the presentation of offers to the seller. It would be wise to work with this information and not read between the lines here. This is a "big ticket" purchase, one that would merit legal advice.

As a seller, I should think that most would want access to all possible information. Is withholding information in the best interest of your seller? If you were to ask them what they wanted you to do, what would their desire be? Even though the initial offer has all the earmarks of being bogus, I would think making the customer aware would be advisable.

Good luck,

Bill
0 votes Thank Flag Link Fri Oct 11, 2013
Hi bunnynose

7 days closing , above asking , switching buyers . sounds like a catch.
can unlicensed activity is allowed and can get compensated?
one is license agent and second is unlicensed agent than who will be responsible on the transaction because license agent allowed unlicensed activity.? hmm
0 votes Thank Flag Link Thu Oct 10, 2013
If you are the agent representing the seller, present the offers and use them as opportunities to make the seller aware of the different "buyers" out there and how to handle them. Your seller will appreciate your professionalism and how you look out for their best interest.
0 votes Thank Flag Link Thu Oct 10, 2013
It is always in your best interest to be represented by a licensed and insured Real Estate agent. If you need representation please give me a call and I would be more than happy to go over with you all the Real Estate needs.

Gosia Miras
(310) 247-1230
Nelson Shelton & Assoc.
355 N. Canon Drive
Beverly Hills, CA 90210
DRE LIC 0117380
0 votes Thank Flag Link Thu Oct 10, 2013
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