Is it legal for the listing agent to represent the seller and the buyer in a short sale?

Asked by Septemberhillfarm, Venice, FL Thu Sep 19, 2013

Listing agent brought her buyer in , who ended up getting the home in a short sale. List agent, seller and buyer are all licensed realtor's coincidentally

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11
Annette Law…, Agent, Palm Harbor, FL
Sat Apr 26, 2014
What is PERMITTED is dictated by the bank.
Some banks (Nationstar) say all agents must be non associated, not even in the same office.
Then when they get a buyer and the price is agreed to,,,Nationstar decides, "We'll have a auction to see if we can pump the price up!" Now that should not be legal when a purchase contract is in place...but there you have it
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The moral to the story is, there is no GOOD FAITH PARTNER on the other side (bank) of a short sale transaction. Why you would think those assisting the buyer or owner to be outside what is legal is a thing of curiosity.
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If you want to know if it is LEGAL, you will need to pay an attorney for such information.
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Is it permissible. You bet.
It is the bank/investor who dictates the rules or who chooses to ignore the rules or makes them up as it pleases them. The real estate professionals involved are on task to be sufficiently agile to stay ahead of the games.
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Tell us, what is your interest in the sale of this property?
0 votes
Murphy Team, Agent, Portland, ME
Sat Apr 26, 2014
Probably legal if there is transparency and Disclosed Dual Agency has been discussed and agreed to by buyer and seller. Often a delicate situation, but practiced quite often by listing agents who bring the buyer to the table.
0 votes
chris bruce, Agent, braintree, MA
Tue Sep 24, 2013
Doesn't help put anyone...but possible
0 votes
James Deskins, Agent, Worthington, OH
Tue Sep 24, 2013
Yes, it's legal. And it's kinda stupid, especially if you are the buyer.
0 votes
, ,
Tue Sep 24, 2013
Where do you fit into the deal?

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference:  http://jamessimms.com/
0 votes
We are the buyers who did not get the house. List agent was not our buyer agent
Flag Thu Sep 26, 2013
Heath Coker, Agent, Falmouth, MA
Mon Sep 23, 2013
YOu are asking a legal question on a non-legal site.
I would use a local legal professional to save time and money and also to make sure you get the correct answer.
A review of the details in the paperwork will provide the best information and answer.

(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
0 votes
tacky to ask for a best answer or TU!
Flag Sat Apr 26, 2014
Scott Godzyk, Agent, Manchester, NH
Fri Sep 20, 2013
As long is what disclosed and that disclosure signed by all parties prior to seeing the home, then yes, it is legal.
0 votes
Marge Bennett, Agent, Fort Myers, FL
Fri Sep 20, 2013
In Florida, the "normal" agency relationship is transaction broker which limits what we can tell our buyer or seller - we can't tell one what the other's motivation is without permission or say that they would pay more or take less. So this is perfectly ok.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Thu Sep 19, 2013
Hi Septemberhillfarm

In CA this is called a Dual Agency (representing both the seller and the buyer). In CA this is allowed. However, both the seller and the buyer have to agree to the Dual Agency in writing.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
Sarah Goulart…, Agent, Plymouth, MA
Thu Sep 19, 2013
For all legal questions, consult an attorney, but in Massachusetts this happens quite often. Disclosure is important in this situation a buyer does not have to seek their own buyers agent. I am not familiar with the common practice in Florida.
0 votes
Scott A. Nel…, , 02155
Thu Sep 19, 2013
As long as the buyer, seller and lender are all aware of it and knowingly consent its just fine. I cannot answer legal questions as I am not an attorney but the situations happen from time to time.
0 votes
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