Can someone who is a licensed realtor buy a house and get a commission and act as their own realtor
2007-11-29 07:04:12 · 6 answers · asked by when and how 4 in Business & Finance ➔ Renting & Real Estate
Yes, as long as they disclose their relationship.
2007-11-29 07:07:11 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes, but here is the catch as to why more Realtors don't go this route:
If you act as your own agent representing yourself (this is VERY different from just working as a Realtor as a profession and buying a house), it is NO LONGER considered an arms-length transaction, so a lender will require two appraisals.
The appraiser is required to notate it on the appraisal.
My advice is to not do so...all you are doing is financing your own commission, and you are still PAYING for it...why would you want to do that?
As a Realtor and an investor...it's a poor financial practice.
2007-11-29 07:27:26 · answer #2 · answered by Expert8675309 7 · 0⤊ 1⤋
Technically you can if you disclose the information, but as a Mortgage broker, good luck getting an underwriter to be okay with it. I have only come accross this once and the loan was denied with three large lenders because it didn't meet their internal guidelines. Besides, Mary B is right, why would you want to finance your own comission?? I would think that it would be easier for you to get a credit from the other agent.
2007-11-29 08:07:37 · answer #3 · answered by Suzzie Q 2 · 0⤊ 1⤋
The technical answer is yes(but check the law in your state). The key is DISCLOSURE. You must communicate fully with everyone verbally and in writing as to your interest in the transaction.
With that said, you are leaving yourself wide open to lawsuits. The other party could claim you, having a financial interest, could not have been exercising a fiduciary responsibility on their behalf. Lawyers are looking for cases to go after and with our crazy court system why risk it?
So the answer is... Yes, it's legal but it's also risky.
2007-11-29 07:18:36 · answer #4 · answered by Michael 4 · 0⤊ 2⤋
Technically, no. A real estate agent cannot represent himself when he is a principal of the transaction involved. He must act like he is not represented. There are assorted means for working around the situation, however. I buy rental properties, and I am an agent. It takes but a simple discussion with the other agent involved to have the amount of commission modified, with a commensurate discount on the purchase price.
2007-11-29 07:09:00 · answer #5 · answered by acermill 7 · 2⤊ 5⤋
yes, but it really does not make any sense unless they have to somehow split it.
2007-11-29 07:12:42 · answer #6 · answered by Jd S 3 · 0⤊ 1⤋