Home Buying in Tolleson>Question Details

Matryshka, Home Buyer in Tolleson, AZ

Home 'under contract' 'sale pending', can a buyer offer it for sale before the property actually changes hands from original

Asked by Matryshka, Tolleson, AZ Wed Aug 17, 2011

seller to buyer? I happened to see an interesting property for sale a couple of months ago & out of curiousity have been tracking it. A couple of weeks ago the status changed from active to under contract/ sale pending. Then today I saw it listed by a property acquisition company specializing in discount real estate throughout the county & asking $7K more than the original listing price (no repairs have been done to the property, it is in the same conditions as when originally listed by the seller...so it is a flip). It says in their fine print 'property either owned by them or under contract". How is it possible to offer a property for sale before it is legally theirs?

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Simultaneous closings like that are dicey at best ... I've not seen anyone attempt it in many, many years. About the closest I've seen are some short sales where the sale is pending successful transfer of the title from the owner to an LLC trying to acquire the house to then sell as a short sale.

I'd have to think there would be something in the addenda the entity offering the property for sale would require that stipulates everything's contingent upon their successfully acquiring the property.

All in all, unless it was the last home on the market, I'd steer clear of it.
0 votes Thank Flag Link Wed Aug 17, 2011
Erik,

My point was that you can not sell a contract to purchase; it is non-transferable. They can cancel escrow, and then the new person can make a new offer... at the same time, the seller could make it available to the public to offer again.

What is not legal is to offer services of real estate, with out a license: "If you need help selling your Contract, call me. " Are you an attorney? or licensed agent?


Watch the youtube videos; it's laying flat on anything, between two things, in public places... it's very stupid, and it's illegal. I was just making a joke... laughing is healthy.

Flipping, Double Close, and Double Escrows, laws differ from state to state, and many have laws regulations making these things illegal. In Nevada, you have to wait at least 24 hours to have a 2nd close on a property, and Double Escrows are illegal.

Oh, BTW "Nevada Revised Statutes (NRS) are laws that are enacted by the legislature."

Also, "Nevada Administrative Code (NAC) are the regulations that outline how laws are administered."


States like Florida, New York, and California have a variety of laws that prohibit or limit "flipping". In Nevada, though it's not law, many banks will require you to sign a 90 day or 6 month no resale addendum, with the purchase of an REO.
0 votes Thank Flag Link Thu Aug 18, 2011
Mark,

What does acting as a principle have to do with being an agent?

"The agreeing party must agree to do business with the new party." Of course, but if they do agree, then what law was broken? Are you saying its against the law for 2 people to agree?You should really read up on Trusts, LLC's, Double Closings. "planking" - on wiki - A fad where people lay face down in the grass? What are you talking about.Against regulation to list in the MLS. Thats an MLS regulation. Not a law.

You are doing your clients a dis-service by talking this way. My question was "Are there any investor friendly agents in SF?" Sadly, many seem terribly misinformed....at best.

Google: double close
0 votes Thank Flag Link Thu Aug 18, 2011
Erik, it's actually illegal to act as an agent, and you should not be offering services to help sell someone's home without a license. Ask your attorney.

You're absolutely right, don't take legal advise from anyone, other than an attorney... not everyone is privileged enough to always have an attorney on staff, such as yourself.

Allan typed flopping instead of flipping, and I made fun with it... Flopping is associated with Planking, which is something really stupid that recently became illegal. Just for you: http://lmgtfy.com/?q=planking

And Erik, No, you can't sell your contract. The contract is between two specified people, and the agreeing party MUST agree to do business with the new party. Plus, this post isn't actually about selling a property before you own it, it's about LISTING a property for sale before you own it, while you're in contract. You can not sell a property before you own it, in many states, like Nevada, it's against regulation to list it in the MLS.

Erik, you should be nicer to people on Trulia; I see you putting down real estate professionals in a lot of your answers, and it's not the way to go. Find somewhere else to take out your anger.
0 votes Thank Flag Link Thu Aug 18, 2011
I don't know what "planking " or "flopping" is, but selling a house IS still legal in all 50 states. If you are a Buyer with a property on Contract you can sell the Contract. That's still legal in all 50 states too. Don't take legal advice from Real Estate Agents, that's Illegal.

If you need help selling your Contract, call me.

I have an excellent attorney.

Erik Overn
575-692-3016
win-storm
0 votes Thank Flag Link Wed Aug 17, 2011
Hey Allan, I heard Planking is illegal, but I'm not sure about Flopping :)

http://www.urbandictionary.com/define.php?term=flopping
0 votes Thank Flag Link Wed Aug 17, 2011
"Flopping" is illegal in some states
0 votes Thank Flag Link Wed Aug 17, 2011
There are too many unknowns in this situation. How do you know it's not legally theirs? Why are you asking? If you're interested in buying it, then you need to hire a REALTOR to work for you as a Buyer's Agent. He / she will be able to research this property and give you the scoop.
0 votes Thank Flag Link Wed Aug 17, 2011
Hi Matryshka,

This would be a question better suited for an attorney.

I know in Nevada the same property can not be listed twice in the MLS. They definitely can not actually sell it until the title is in their name; they may likely be able to get offers, but not open escrow.

They can definitely attempt to resell it for however much they wish; some loan types would restrict buyers under certain provisions. This is also something that varies from state to state.

If they do have it listed, they should have some note that says something like "contingent upon current transfer of title".
0 votes Thank Flag Link Wed Aug 17, 2011
I guess as long as they are DISCLOSING the fact, they are covered:

Call that aggressive marketing!

However I don't know how they can be making any money at $7000 with Closing Costs and everything....
0 votes Thank Flag Link Wed Aug 17, 2011
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