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Author Topic: Writing a contract only to find the property is still listed with realtor  (Read 3355 times)

Offline J 5

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I looked at a property that a daughter is trying to sell for her parents. I made a verbal offer, and met her at the property today, only to find that she still has it listed with a realtor. I said that i needed to know when the contract expires, because legally, i think he would be able to recieve his commission, if i tried to wholesale flip it to another investor. She said it will not be a problem, and he is a friend, and would probably be willing to put sonmething in writing for me.
Would this be legal? If not, what can i do?

Offline reimillions

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Re: Writing a contract only to find the property is still listed with realtor
« Reply #1 on: December 19, 2010, 11:17:55 am »
I looked at a property that a daughter is trying to sell for her parents. I made a verbal offer, and met her at the property today, only to find that she still has it listed with a realtor. I said that i needed to know when the contract expires, because legally, i think he would be able to recieve his commission, if i tried to wholesale flip it to another investor. She said it will not be a problem, and he is a friend, and would probably be willing to put sonmething in writing for me.
Would this be legal? If not, what can i do?

I would never advise contracting a property that is already under contract with a realtor. That is a headache waiting to happen. You can search my name "reimillions" on here and see that i have given golden advice on here as a guest in the past. I would advise you to back off until the listing expires. It appears quite shady.

Offline Gold River

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Re: Writing a contract only to find the property is still listed with realtor
« Reply #2 on: December 19, 2010, 11:33:15 am »
Hi,

    The seller has the ability to negotiate or work out any deal with a real estate agent or broker, so terminating the listing agreement can be done at almost anytime if the property is listed with a friend.

My question is what is FMV or ARV and could you convince this seller to except a lot less than they could sell for retail to a owner user?

As long as the agent goes along with a deal to end the listing the property is fair game!
I buy properties all the time listed with realtors or FSBO so deals can be had with both!
All they can say is "No"!

                    GR

Offline J 5

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Re: Writing a contract only to find the property is still listed with realtor
« Reply #3 on: December 19, 2010, 12:31:17 pm »
Thank you for the info. Originally she listed it herself on craig's list for 147k. I offered her 130k, but i am going to assign it to another investor. If i got her to get something in writing from the realtor, would that work? Or is the only way for this to work, to get her to terminate her agreement with the Realtor

Offline reimillions

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Re: Writing a contract only to find the property is still listed with realtor
« Reply #4 on: December 19, 2010, 12:55:23 pm »
Thank you for the info. Originally she listed it herself on craig's list for 147k. I offered her 130k, but i am going to assign it to another investor. If i got her to get something in writing from the realtor, would that work? Or is the only way for this to work, to get her to terminate her agreement with the Realtor

There is always loopholes around pretty much anything, but this definitely appears to be a headache, if you are not experienced and don't know the seller from adams.

For one I've seen many people go into deals like these and waste their time and efforts cause the realtor sold the property before them.

I've done deals like this in the past and still will do them if need be, but I only do them if I already have built an extraordinary relationship with the seller and MOST IMPORTANTLY I have a purchase contract with the with the Seller at a substantially lower purchase price than what is listed by the agent.

There are also rules that need to be followed and if it is not followed Precisely as outlined I get a SUBSTANTIAL Breach of Contract Fee. This means the seller is able to sell via their agent or themselves, however, if this does occur, my work done is not in vain because I am going to be re-compensated for my efforts in by a very Handsome...I mean very very Handsome Breach of contract fee. For my luxury million dollar homes this really has some advantages.

So as you see, it can be done, but I am only being completely honest when I warn you if not done correctly you can lose a lot of time, which of course means another deal and $dime$ loss.

Best of Luck, whatever you choose!

Offline tatertot

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Re: Writing a contract only to find the property is still listed with realtor
« Reply #5 on: December 20, 2010, 01:27:48 pm »
Sure, the agent can cancel the listing. It's easy and a very short form. He just has to agree to it.

However, that's not your problem. Your problem is that you are not buying it from the owner of the property. It's her parents property and not hers.

Offline xpandergt

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Re: Writing a contract only to find the property is still listed with realtor
« Reply #6 on: December 24, 2010, 09:34:48 am »
I looked at a property that a daughter is trying to sell for her parents. I made a verbal offer, and met her at the property today, only to find that she still has it listed with a realtor. I said that i needed to know when the contract expires, because legally, i think he would be able to recieve his commission, if i tried to wholesale flip it to another investor. She said it will not be a problem, and he is a friend, and would probably be willing to put sonmething in writing for me.
Would this be legal? If not, what can i do?


One of the golden rules to always ask a potential seller as soon as you begin talking to him or her. "is the property currently listed". In your case unless you don't want to deal with a Realtor, find out from the seller how long the listing agreement is for and then wait for it to expire and then make your offer directly to the seller. Personally, I do not like dealing with a Realtor unless I am making an offer on a REO.
Bulls make money. Bears make money. Pigs get slaughtered!

Offline nsu1997

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Re: Writing a contract only to find the property is still listed with realtor
« Reply #7 on: December 27, 2010, 03:51:52 pm »
Sure, the agent can cancel the listing. It's easy and a very short form. He just has to agree to it.

However, that's not your problem. Your problem is that you are not buying it from the owner of the property. It's her parents property and not hers.

I completely agree. tell the seller to either cancel listing or pay the realtor out of their proceeds. and it's true the daughter cannot technically sell anything so you need to make sure the actual sellers (her parents) are on board with the deal.

Offline xpandergt

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I have nothing against Relator,  They are great to use when buying a house to live in other then that, they are a pain in ass to deal with when it comes to wholesaling. A seller that I contacted last year who turned down my offer gave my information to a relator who called me yesterday on my voicemail asking whether I was still interested in the property. Maybe once the relators listing agreement expires but not before then. Dealing directly with the seller is always the best way to go.
Bulls make money. Bears make money. Pigs get slaughtered!

 




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