Home Selling in Morgan Hill>Question Details

Louiserinella,  in Morgan Hill, CA

I am the buyers agent who wrote an offer on a short sale property. The listing agent is related to the seller. is that in violation?

Asked by Louiserinella, Morgan Hill, CA Wed Jul 7, 2010

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Very interesting answers. Here's my question to you...why would this be a violation? The listing agent is not short saling their own house, they are selling a house for a family member. You didn't mention whether or not they disclosed that on the MLS listing. If they did, no problem. If they didn't that's an issue to discuss with your local real estate board.

The arm's length transaction only comes into play for the buyer. You can't be related or have a relationship to the seller as a short sale buyer.

Lastly, as far as being a violation, the seller's bank will not usually allow the seller to sell their OWN house as an agent because they are not allowed to profit from the sale and a commission would be a profit.
0 votes Thank Flag Link Thu Jul 8, 2010
In California, that is not by default a violation. There is a field in the MLS that is used in our county (I am also in Morgan HIll) that is specifically set to disclose that the agent is related to the seller, has an interest in the property, etc. If they reveal their relationship in the listing, they are covered. If they do not, I believe they are in violation of policy, but not the law.
0 votes Thank Flag Link Thu Jul 8, 2010
Timely question. If the listing agent disclosed the relationship in the MLS, on the contract AND the ownership period of the subject property has been greater than 6 months it is typically acceptable. Some banks however, who are doing short sales and, or, REOs don't like such a close relationship. If not that would be a bank issue and not a DRE problem.
Good luck,
Mike Walters
Web Reference: http://CaHomes411.com
0 votes Thank Flag Link Wed Jul 7, 2010
It could be. Distressed properties need to be arms length. The primary consideration is that the seller receive NO benefit from the sale of the property. Real Estate laws are regional. You should address this question to your board's real estate atty. When you find out, let us all know!

Good luck~

Debbie Albert, PA
Coldwell Banker Residential
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Wed Jul 7, 2010
I have come across an example where the bank deemed it a conflict of interest and was not going to allow relative to represent. Check with the bank on their policy first before wasting time. Especially if foreclosure sale is scheduled soon.

Glen Mitchell
0 votes Thank Flag Link Wed Jul 7, 2010
Check with your state laws for Realtors. In most states you need to disclose the relationship if related .

It is the bank decision on which offer to accept NOT the listing agent.

Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Wed Jul 7, 2010
If you are an agent, you should be directing this question to your broker owner--from your question it appears as if the listing agent disclosed being related to the seller--it is not a violation for an agent to list a relative's property.
0 votes Thank Flag Link Wed Jul 7, 2010
Not at all. However, if an agent has a financial interest in the property they must disclose that fact.
0 votes Thank Flag Link Wed Jul 7, 2010
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