Home Buying in New York>Question Details

Buyer In Ny, Home Buyer in New York

I am buying a house with an owner that is selling with a relocation company but they didnt disclose that to us

Asked by Buyer In Ny, New York Sat May 9, 2009

In fact, they changed the deal sheet prior to contracts being sent out, indicating for the first time that the sellers are a relocation company. I feel my negotiation would have been much different had I known. Is it ethical to conceal that information?

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I would like to ask the question why you would have negotiated differently...When I work with relocation, the owner of the property is still the homeowner until the owner closes with the relocation company. The owner retains the right to accept or not accept an offer. Once the time period goes by that was agreed upon and the owner takes the offer that the relocation company is willing to pay, then would relocation own it.
In the normal course of a relocation transaction, the owner is named as the owner of record. Negotiations are completed with the homeowner. If the offer is accepted by the homeowner, they have to run the details by the relocation company in order to make certain they comply with the rules of their specific package. The homeowner makes a contract with relocation for the exact amount that you make a contract with relocation. The title is usually transferred almost simultaneously. Everything is completed the same as the transaction.

If the property was already purchased by the relocation company, they would list the property as corporate owned. Not many relocation companies are offering the homeowner the opportunity to have their home purchased in this ecomony.

I hope this helps clarify....
Web Reference: http://www.cyndimckenna.com
2 votes Thank Flag Link Sat May 9, 2009
New York soes have a simple site for this
It is called ACRIS
2 votes Thank Flag Link Sat May 9, 2009
I guess a question I have is, "are they acting as an AGENT for the selle?" If they are, that would have to be disclosed in the advertisement that you saw that drew you to the property. If they are not acting as an AGENT but just as a service with no agency relationship created by the business there may not be a need to disclose. That is a legal question that I do not have an answer to, but for an answer you may want to call the legal departments of REBNY (REAL ESTATE BOARD OF NEW YORK), NAR (NATIONAL ASSOCIATION OF REALTORS) or NYSAR (NEW YORK STATE ASSOCIATION OF REALTORS).
2 votes Thank Flag Link Sat May 9, 2009
The information is basically irrelevant, they are handling it on behalf of the owner as a part of a relocvation package, you are assuming they were desperate, like those who want to know why an owner is selling, a question I do not answer as it is the owners private information. We don't give names of owners or sellign entties until a deal is agreed upon.
2 votes Thank Flag Link Sat May 9, 2009
I'm not sure what the fact that the seller is a relocation company would have affected your negotiation? What did they change on the deal sheet? What exactly is a deal sheet, by the way. To me, a deal sheet is what I submit to my brokerage indicating what the commission is going to be.
1 vote Thank Flag Link Sat May 9, 2009
Hi BiNY,

Richard is right. It's just a relocation package.

Usually what happens is that the HR department of a given large corporation will have a relationship with a relocation company. Often times this relationship is one of the perks that are extended in a package to new hires or top execs. Coldwell Banker Previews International in NYC works with Cartus. This relationship puts us in a position to place incoming NYC buyers and relocate outgoing NYC owners/buyers. Most relocation companies have very high standards of how they go about the process and when working with one, the agent has to detail every step of the way via forms and reports (likely the reason why they changed the deal sheet.)

Some may be confused but it is *not* at all a legal issue since all that the relocation corporation is doing is overseeing the sale of the property for it's client. In essence, they focus on the sale while their client focuses on putting down new roots elsewhere and focus on their job there.
1 vote Thank Flag Link Sat May 9, 2009
I'm also a buyer. From my point of view, the "buyer in Ny" might have submitted a much lower offer if he/she knew that the seller is a relo company. Therefore, the seller is hiding this information to take advantage of buyers for getting higher offering price! I am not a real estate lawyer, I believe there should be some rules or regulation to protect buyers in this case.

Also, the home owner has the right to keep his motivation private. However, since the relocation company will become the seller on the contract, this information should be disclosed earlier! Otherwise, the buyer should have the right to not deal with the relocation company.
0 votes Thank Flag Link Fri May 7, 2010
I'm also a buyer. From my point of view, the "buyer in Ny" might have submitted a much lower offer if he/she knew that the seller is a relo company. Therefore, the seller is hiding this information to take advantage of buyers for getting higher offering price! I am not a real estate lawyer, I believe there should be some rules or regulation to protect buyers in this case.

Also, the home owner has the right to keep his motivation private. However, since the relocation company will become the seller on the contract, this information should be disclosed earlier! Otherwise, the buyer should have the right to not deal with the relocation company.
0 votes Thank Flag Link Fri May 7, 2010
Hi Buyer in NY, The negotiations would go the same. The owner owns the house up and until the negotiations have ended (most of the times) (Relo has already done BPO and has a general idea what they will be selling for). Contracts are then drawn for the relocation company to purchase the house from the sellers at the agreed price- once contracts are fully executed- title is transfered. Once title has been transfered -the relo company(new owners) send out contracts to buyers attorney. Sometimes a few weeks to accomplish. Relo company can't send you the contracts until they own the property.....the package is quite large and needs notarization. Every i needs to be dotted and every t has to be crossed. Or they send back whatever is missing. That has been my experience. Terry K 718-614-3167 cell
0 votes Thank Flag Link Mon Jun 1, 2009
How does this impact you on the buy side at all?
0 votes Thank Flag Link Sat May 9, 2009
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