You can represent yourself as long as it has been disclosed to all parties involved in the transaction. Sometimes the seller though has the right not to pay commission to an Realtor acting as a buyer.
2007-07-30 07:10:44
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answer #1
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answered by Maria2Blue 3
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Yes they can. Some investors do this to legally get money back at closing as the commission and most lenders allow for that.
The only catch is that most lenders may require a second appraisal, since one of the Realtors is an invested party in the transaction, and it must be noted on the appraisal.
However, there is a difference between purchasing and representing yourself as a Realtor, and puchasing as a buyer, and not officially representing yourself on the contract....there is a difference.
For example, when I purchase a property, on the contract under "Buyer's Agent"...it is blank, my name is listed as ONLY the buyer, and then I write a disclosure that I am a licensed Realtor.
If I want money back at the closing in commission...I put myself down as the buyer and the buyer's agent...you see the difference? It's just a contract thing...but they are legally different.
One you get paid a commission on, the other you don't...and you don't need the second appraisal either.
Even if you are not representing yourself, you always must disclose on an offer application or when accepting a contract if you are selling that you are a licensed Realtor....that is for ALL STATES.
2007-07-30 07:35:23
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answer #2
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answered by Expert8675309 7
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I bought my first house 3 months after I became a Realtor. I forgot the law about disclosing that I was a Realtor when I made my initial offer, but luckily the other Realtor, who I knew, reminded me of it in the seller's counter-offer. If you are the Realtor, representing yourself, I highly suggest you speak to your principal broker about overlooking the usual "split" on your purchase. It would really suck to have to pay a broker a cut on a your own house. A better idea would be to concede the commission toward your closing costs (including your down payment), thus to potentially avoid income tax)
2007-07-30 07:20:52
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answer #3
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answered by linkus86 7
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I recently bought a home and of course represented myself. In Texas I am required to write a notice in the contract that notifies the other principal that I am a licensed agent or Broker. Instead of collecting commission I negotiated that closing costs would be paid on my behalf by the seller (so it wouldn't be taxable income).
There may be a whole list of various ways that other states handle this, but I was representing myself as the buyer, looking out for my interest. The seller had their own agent that looked out for their interest. I don't see any conflict in this case.
Now if I claimed that I could represent myself and at the same time represent the seller I think that would be begging for misunderstandings and possibly a lawsuit. (Although a large number of Real Estate companies in Texas believe that the laws in the State of Texas seem to allow for this to happen, I just disagree with them).
2007-07-30 07:56:26
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answer #4
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answered by glenn 7
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Of course they can. In CA they have to disclose the information, including whe they sell their property. They get the same commission as they would normally get and can apply it directly to their closing costs.
2007-07-30 07:45:09
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answer #5
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answered by Anonymous
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no law against it and in some states requirement of disclosure that they are licensed. Prudent to disclose regardless of laws
2007-07-30 07:08:01
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answer #6
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answered by newmexicorealestateforms 6
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yes.
some states, however, will require that they forego the commission they'd otherwise be due -- under the legal theory that you can't be an agent for opposing principals in the transaction.
....
2007-07-30 07:10:14
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answer #7
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answered by Spock (rhp) 7
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