I would search in your jurisdiction to find out that answer. Some local governments have some programs fort he first time home buyers. For instance; Washington DC offers $5000 subsidy to first time home owners.
If you have proof of their discussions and agreement on the price, then it may be a violation of the Home Valuation Code of Conduct (HVCC.)
The purpose of the HVCC is to create a separation between a loan officer or loan originator (loan broker) or sales agent (Realtor) and the appraiser retained to value the property.
With limited exceptions, the HVCC calls for no contact between the lender or sales agent (Realtor) and the appraiser regarding the property being appraised. Compliance with the HVCC became mandatory June of 2009.
I suggest you to discuss the matter with the agent's Broker before closing your transaction.... more
The primary would be in jeopardy if the loan payment is behind on that property especially. Now, if the other goes into foreclosure you would definitely want to consult with a bankrupcy attorney ASAP.... more