Does homeowner sign listing contract when I have an option contract?

Foreclosures, Short Sales, Tax Foreclosures
1

I am wondering if I need to have the homeowner sign the listing contract along with myself when I have an option contract signed by them.

This scenario is for a short sale using an option contract in which I am reselling the house once the option is signed.

2

All titled owners sign the real estate listing agreement. You do not have an ownership interest so you would not sign.

3

I have to respectfully disagree with Dave T. Someone who has an option on the property has an equitable interest in the property and can resell that interest. However many agents or Brokers may not understand this and may not allow you to do it. You may need to search a little bit to find a Brokerage that will do it.

I fact it could be argued that the seller can’t sign a listing contract as he has no right to sell the property while he has a contract to sell it to you.

This might possibly vary by state law. I am not an attorney and the above is not to be considered legal advice for your specific situation It is simply my laypersons understanding of the law.

4

ncarey, Dave is one smart cookie but I thought as you do. Herbster

5

Be more secured, you should sign the listing contract. It will make easy for you to resale the property.

6

Thanks guys… I appreciate your help.

7

very interesting topic.

i have heard both what Dave said and what ncarey said.

the interesting thing is. if you sign the listing agreement, it seems to give realtors a better “feeling” about the short sale. however, the lender might “hiccup” when they see the buyer on the listing agreement when you submit the package.

anyone else want to chime in?

8

i would also like to add in the following since it falls under this category.

when you are in the negotiating stages and the end buyer submits and offer, i’ve had agents ask “was this shown to the seller?”. now technically they are buying the property from my LLC. also, it doesn’t matter what they offer, the homeowner still NETS 0. so having this said, do most of you still show the homeowner or is it sufficent to view the offer yourself since you have equitable interest.

these points are some of the biggests concerns of agents i’m noticing.