Dennis,  in Ohio

I know an agent. He is also a wealth coach. His clients join the company he works for and buys houses to put

Asked by Dennis, Ohio Thu Aug 14, 2008

rent to own in.
This agent has started working with a rehabber. He provides the downpayment, the rehabber buys the house fixes and sells it. The agent is taking 50% of the profit. Is this legal? It seems like a terrible conflict of interest. I don't believe that the agent discloses this to his boss or client. It seems like double dipping.
The agent now has stopped providing the downpayment, but still demands 50% because he can sell the properties fast. The rehabber does not know if he has any legal rights or if he is just doing business with a greedy but Legal man.
This is happening in Ohio.

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John Youker,…, , Beavercreek, OH
Thu Aug 14, 2008
It sounds to me like you may need the help of an attorney on this one to get legal advice from. As a Realtor we can not give legal advice.

There is nothing wrong with an agent buying a home, rehabbing a home, and selling an investment property for profit, they just have to disclose that they are a licensed agent to the buyer and seller. If an agent is finding the home for the investor, who buys it and then sells it through the agent and his clients and is paying the agent a commission on the side, that may be questionable as ALL commissions must be paid to the brokerage. If there is an arrangement to split the profits at 50% with the agent, you will have to seek the advice of an attorney on that one, I am not sure and have not ever dealt with someone willing to give up 50% of the profits on an investment.

Bottom line is this: If you are unhappy about who you are in business with, get out of business with them. There is no need to try to find something illegal that they are doing or making something out of nothing. He is in this for the profit, just like the rehabber or investor is, if you think he is greedy, then get out of business with him and find more of a "win-win" person to work with.

Good luck!
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