Home Buying in Minnesota>Question Details

Mnlakeplace, Real Estate Pro in White Bear Lake, MN

Arms length transaction

Asked by Mnlakeplace, White Bear Lake, MN Sun Dec 23, 2012

I have a client I represent for a listing I am not related to the seller but my wife wanted to put in an offer on the home would this be considered a arms length transaction being neither party is related in the deal?

Help the community by answering this question:

Answers

4
I agree with everyone but boy disclose disclose disclose. The seller should be happy because he should not have to pay you a commission, or at least I would not charge him if it were myself. Up to you on how you handle it.
0 votes Thank Flag Link Mon Dec 31, 2012
If you directly or indirectly benefit....it is not arms length.
As Cameron stated, "Each bank is different."
-
You'll need to call, and even then. when the 'bank' says 'Hokey dokey, no problem," those addendum that will be presented are incredibly clear and will prove to be problematic finding space to declare this is an arms length transaction.
-
Proceed with caution.

Related news:
Are you aware of the HUD 'blacklist' of renegade professionals who have crossed the line in regards to this subject? No one wants to see a name they recognize appearing on that list. Especially if an agent has had ANY dealing with those appearing on the black list.
0 votes Thank Flag Link Mon Dec 24, 2012
Never heard of a black list interesting thank you Annette
Flag Mon Dec 24, 2012
Every bank has a different policy on what they will allow. Call the bank, ask the question, and see what they have to say. It has been my experience that most will accept an offer in this situation, but won't pay a commission at all since you are also a buyer.

Over disclose on this one, there is a lot that commerce could get interested in if you try to hold anything back from the bank or the sellers.

Cameron Piper
Coldwell Banker Burnet
Licensed MN Broker
Web Reference: http://www.CamPiper.com
0 votes Thank Flag Link Mon Dec 24, 2012
Thank you Cameron
Flag Mon Dec 24, 2012
I don't think that would be considered an arms length transaction, since you are representing the seller you couldn't have your wife make an offer. It doesn't have to just be the buyer and seller being related, you would basically be involved on both sides of the deal.
0 votes Thank Flag Link Sun Dec 23, 2012
Thanks Lenny
Flag Sun Dec 23, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer