Home Buying in 65205>Question Details

coybug, Other/Just Looking in Columbia, MO

If a Real Estate agent buys a house, flips it (remodels it) can he turn around and sell it himself? Also, what if he fails to disclose problems?

Asked by coybug, Columbia, MO Tue Jun 4, 2013

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2
Coy,
This is a GREAT question to run by the real estate you used or will use to purchase this home. A second alternative will be your attorney.
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The answer will be..."yes he can' and "Yes he can." What you must do is read ALL the documents before you sign. Contained within them is the answer to your questions. We do not have access to those documents. These documents will have made clear what your due dilegence would require.
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Sometimes these documents state the seller knows nothing regarding the home and you must verify EVERYTHING of importance and value to you BEFORE submitting a purchase offer. Or the documents may provide you an inspection period allowing you to complete ALL due dilegence before finalizing the purchase. We simply do not know what those docements stated, the conditions of the purchase or the status of the property when you purchased it.
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So, what does the real estate professional you have hired say? Professionals are there to help in exactly this situation.
0 votes Thank Flag Link Tue Jun 4, 2013
A Real Estate Agent or Broker is totally allowed to dabble in Real Estate too:
That may be why they got into Real Estate in the first place.
This is like asking if a Banker or Stock Boker can play with real money.

The Key, in all cases, is that they have to DISCLOSE their position; and no one is more sensative to DISCLOSURE than an Agent.

If they fail to disclose any problems, they will be in hot water; the same as any Seller.
There is one exclusion which may apply, however:
If the Realtor buys a flip, remodels and updates it, but never LIVES IN IT, they would be expected to be aware of all the problems; just what they had become aware of due to their visits. This is the same as a Bank, which owned the property, but never lived there; they can file a total exclusion.
0 votes Thank Flag Link Tue Jun 4, 2013
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