Home Selling in Arcadia>Question Details

kosahene, Home Buyer in Arcadia, CA

I am a listing agent on a short sale. My wife would like to buy the property. I have disclosed this to the seller's and they are fine with it.

Asked by kosahene, Arcadia, CA Thu Dec 27, 2012

Will the bank allow this? Am willing to forgo the commission in representing her. Any ideas?

Help the community by answering this question:

Answers

8
First and foremost, I would recommend clearing this with your broker. This could ethically be perceived as a conflict of interest.

If your broker supports this, then I would make it a point to disclose throughout the contract and disclosures that the listing agent is related to the buyer. That way everything is out in the open.
1 vote Thank Flag Link Thu Dec 27, 2012
To avoid a last minute problem around an arms length agreement, you may want to refer this listing out to another agent to handle, if your wife will be the buyer. Good luck!
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Fri Feb 1, 2013
I believe that you are Okay; as long as you Disclose.
I think you are entitled to your commission too.
0 votes Thank Flag Link Wed Jan 30, 2013
You might want to talk to C.A.R legal counsel prior to proceed, because with short sale bank/lender requires all buyers and seller to sign an Arm Length Affidavit which in effect saying all parties of the transaction are unrelated or unaffiliated by family, marriage, or commercial enterprise, each of whom is acting on his/her interest and that the sale price is based on the fair market price of the property. Hope this helps.

Wesley Lam
Real Estate Consultant
Your Choice Does Matter!
CA DRE Lic #:01364733
Broker, ePro, SFR
(626)272-6126 Cell
(877)395-0668 Toll free efax
0 votes Thank Flag Link Wed Jan 30, 2013
"... can not be a party to the transaction..."
Need I say more?
is it possible? Ya
Would I do it and risk what any one person may call bank fraud in the future? no
Some say as long as you disclose.
You are the professional....
you have to ask yourself,...
Do I look good in Orange?
Do i like the view I have now or would I prefer the view of a cellmate?
Then you have to ask your broker if they are Ok with it as well.
I know I would not be.
I would say you and or your wife can buy a home down the street.
Oh and if you think you aren't crossing the line,....
I invite you to read up on real estate fraud and see who goes to jail.
Then again perhaps your wife has been reading it.
I know if I was on a jury or at an association review board deciding your fate,... it would not bode well. I know the form the buyer signs, says something to the effect,... you are not related to or know the seller. Ya see this is where I see, you do know the seller you are representing the seller. wife and husband are one. I would consult a real estate attorney and a criminal bank fraud attorney if you think it is worth it.

Harold Sharpe - Broker
So Cal Homes
(951) 821-8211
harold@socalhomes.biz
http://www.socalhomes.biz
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Mon Dec 31, 2012
You or your wife can buy it. As long as neither of you are not related to the seller or any other business relationship other than the listing? I have one of those exact transactions approved and going to docs. BUT, each bank may have their own interpretation of that rule of arms length transaction? You will have to sign an affidavit of arms length transaction...

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Thu Dec 27, 2012
Interesting that you say my wife wants to buy it and not that we want to buy it. I would forgo the commission too since you will pay tax on it. When I buy RE for my wife (also for me) I drop the commission and reduce the price of the house by that much. To a seller it comes out the same and I pay no tax on any commission then.
0 votes Thank Flag Link Thu Dec 27, 2012
This is an interesting question. Usually in a short sale, the bank will request that a signed "arm's length affidavit" be submitted so that the seller is not selling to a relative.
However, it may just depend on the individual bank as to whether they will accept this. If you have an experienced short sale negotiator or real estate attorney, I'd ask what they think. Also, an experienced lender may be a good one to confer with.
I'll be looking forward to seeing how this plays out. Good luck!
0 votes Thank Flag Link Thu Dec 27, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer