I have a friend who had a (partner) that would place short sale propertiesREO’s. under contract and look for buyers to to flip. The friend would go on craigslist and post them. But when he posted them he placed under the owners area. Well he got a call from a Realtor who stated that he was a fraud an a scam and was trying to sale something that wasn’t his.
Friend didn’t throughly investigate these properties, but tried to find a buyer since they we already under contract from his partner. Now the broker is saying he will be contacting the Real Estate and Banking Commission. However, no money or transaction of any kind and no funds of any kind was transferred on any property by my friend. it was a mistake.
Is there anything he can do, so this issue will not go any further. he has his own Real Estate Investment business. legitimate. He wasn’t trying to pull a scam. i guess he just didn’t know. or wasn’t thinking. Any help will be greatly appreciated.
If he gives a deposit (for instance a $10 deposit) and he has a deed or a purchase and sale agreement he should be fine because he has an interest in the property. If the property isn’t under contract and he didn’t give the seller a deposit he is in the wrong. For a first offense I can see much happening but a slap on the wrist. If he is a repeat offender he could get into serious trouble. Don’t sweat it. Tell him to keep doing deals. Just make sure he is giving deposits and getting agreements so he has recourse.
The Real Estate is a prude. Aaron is correct. As long as your friend has a beneficial interest in the purchase of the property through the possession of the purchase contact and has given the seller earnest money, the Real Estate agent doesn’t have a leg to stand on in this case.
I have gotten complaints already from Real Estate Agents that are mad because I try to help the homeowners sell thier properties without their agents assistance. “Well you dont have a real estate license so you cant offer to sell properties that dont belong to you.”