Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am buying a listing that is partially owned by the seller. He didn't disclose his interest in the property on the original MLS, and now he wants me to bail him out by signing something that acknowledges his interest in the property. Seems shady to me.
I understand that law requires his disclosure but I'm wondering exactly why.
In Georgia, the Real Estate Commission considers that a Seller/Agent has more knowledge than the average Seller - thus we disclose. Whenever you see a sign that reads "Owner/Agent" - it is a Listing Agent that is also the Seller. I think it came about because the general public did not like being shocked at the closing table or during the transaction that the Seller is also the Listing Agent.
In Georgia, we also disclose that the Seller has or has had an active real estate license even if they are not the Listing Agent.
What George said probably applies to most states, it does in AZ. The agent in your case probably should have disclosed his ownership interest in the listing. Either way, he needs you to sign a disclosure acknowledging that you were told. If this concerns you, then you should discuss with your agent if you have one, or talk to the listing agent and possibly his managing broker. Would it have changed anything if you had known?
I am buying a listing that is partially owned by the seller. He didn't disclose his interest in the property on the original MLS, and now he wants me to bail him out by signing something that acknowledges his interest in the property. Seems shady to me.
I understand that law requires his disclosure but I'm wondering exactly why.
Don't sign it unless he gives you half the cost of the home as a rebate! Why bail him out when he was obviously trying to break the law? Sounds really shady to me and if you agree now you will most likely get a nasty surprise later! If he wants you to bail him out then make him pay!!!
Is this an agent that claimed to represent you or the Seller? If he didn't claim to represent you, I would just sign it. He's a total idiot for not telling you up front but mistakes happen.
SC also requires disclosure. I suspect it's more to protect the public since the Realtor would have training Joe Public wouldn't. Probably more of an oversight by the agent than anything shady. I only really see it as an issue if he is supposed to be representing you and he has an ownership share in the property you're buying. If he has sent you notice then you've been informed whether you sign it or not. If he has sent you notice then you've been informed whether you sign it or not. If you want the property and it's no big deal to you then just sign it and move on. If it's a big deal don't sign it and don't buy the property. I wouldn't recommend listening to JBiggs advice either way. He's very anti REA and takes a shot at the profession any opportunity he gets.
SC also requires disclosure. I suspect it's more to protect the public since the Realtor would have training Joe Public wouldn't.
That is what many laws are there for. Unfortunately to many licensed professionals decide to ignore them.
Probably more of an oversight by the agent than anything shady.
Disclosure is a hot button topic regardless if it is disclosure by the seller or disclosure by a used home salesperson. The claim of "Oh I forgot", or "Oh I just missed it" is common for those who choose to ignore the laws until they are caught!
I only really see it as an issue if he is supposed to be representing you and he has an ownership share in the property you're buying.
It is an issue anytime failure to disclose occurs! If a person fails to disclose then it is a possibility they are failing to perform other required duties as well!
If he has sent you notice then you've been informed whether you sign it or not. If he has sent you notice then you've been informed whether you sign it or not.
From the op's post:
Quote:
and now he wants me to bail him out by signing something that acknowledges his interest in the property
I put it in red because it is a red flag! Yes he has informed him but the did he inform the op in writing or verbally? The op did not specify that but I would suspect it was verbally and if in writing very obscure and not formally. That would be another big red flag!
If you want the property and it's no big deal to you then just sign it and move on.
The op is wondering why they are required to disclose it and has expressed a concern that something shady is occurring. As for just signing it and moving on that implies that the op agrees with whatever the op is about to sign. Since we don't know what is in the document that is not appropriate advice.
If it's a big deal don't sign it and don't buy the property. I wouldn't recommend listening to JBiggs advice either way. He's very anti REA and takes a shot at the profession any opportunity he gets.
Actually I am not anti rea but I am anti dishonest rea! To many of the dishonest and not completely honest rea people running around out there and consumers need to watch every step around any real estate person. To many consumers being ripped off and they need to approach every real estate transaction as a business deal which means verify first, get it all in writing, and trust last! Unfortunate that many good re professionals are subjected to the effects of the dishonest and less than complete/honest ones!
What point in the negotiations are you? Still countering? Signed contract? About to close? Do you have your own agent?
If the property hasn't closed yet, and you knew about it, it just wasn't in writing, just sign it.
If the property has closed, or if this is coming as a surprise to you, and if you wouldn't have bought the house or would have negotiated differently had you known, don't sign it.
In my area, this is usually disclosed via a counter offer or addendum sometime between when the contract is originally written, and negotiations are finalized, but sometimes gets missed and picked up on an addendum later. As long as you knew about it, and the agent/seller wasn't trying to be secretive, you should just sign it.
What point in the negotiations are you? Still countering? Signed contract? About to close? Do you have your own agent?
If the property hasn't closed yet, and you knew about it, it just wasn't in writing, just sign it.
If the property has closed, or if this is coming as a surprise to you, and if you wouldn't have bought the house or would have negotiated differently had you known, don't sign it.
In my area, this is usually disclosed via a counter offer or addendum sometime between when the contract is originally written, and negotiations are finalized, but sometimes gets missed and picked up on an addendum later. As long as you knew about it, and the agent/seller wasn't trying to be secretive, you should just sign it.
Excellent question.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
