Is it illegal for a realtor to list a property in the multilist for a seller if the seller does not own the property?For example I have a property under contract from a bank and asked a realtor to list it as is until I close on it with closing contingent upon my closing.She told me she had to show proof of ownership prior to listing. State of Indiana.
I think it should fall under “illegal” but check your local state government. Almost, always, for a selling transaction to occur… a seller agreement has to be signed by the owner or person on title, or by power of attorney.
In the REALTOR(r) world, yes that’s illegal. They can get their license pulled for listing a property without the owners knowledge. Since you are not the legal owner yet, you cannot list the property.
Raj
I belive in some investor coursed I have taken in detroit by russ whitney, U can advertise in this way, selling under contract, pending closeing, forsale buy contract , U get the Idea,etc.
and stuff like this is not against any laws, it in the way U go about it,… 8)
Wrong. A realtor can only list a property on the MLS if he/she has a signed listing agreement.
Da Wiz
A signed listing agreement by the owner of the property, or legal trustee, or legal representative of the owner by power of attorney.
Raj
So you mean to tell me there are realtors here in florida doing things illegal :'(.I would have never guessed that to happen in the land of fraud.An aquantance (?) of ours lists homes that way which gave me the idea.Thanks for the input ;D
Hello Everyone:
Something seem’s to be a little twisted here. First, your " NOT "
selling the property. Your selling the "RIGHTS " to purchase the
property, " NOT " the property
Example: John Doe a single man, if this is how you wrote it up,
than " YES " your going to have a problem in selling it period…
Example #2: John doe and/ or assigns on the purchase and sale
agreement, than it’s a whole different story.
Remember, Once you have the contract signed by both parties
you must execute the terms in that contract. Inspections,Financial,
time frames, etc. You " MUST " give yourself room and time to sell
your " RIGHTS ", and then and only then YOU!, are free from
any obligation to that contract, " NOW " the NEW owner of the contract " MUST " fullfill the contract…b.
Mystic,
Don’t know what seems so twisted to you.
A REALTOR(r) cannot list a property on the MLS in your name IF you do not own the property or have a legal right to sell the property.
Having a purchase and sell contract does not qualify has having the right to sell the property.
When a property is listed on the MLS, then what you are offering potential customers is to sell THE property. You cannot list anywhere in the MLS the rights to a contract to buy the property.
If you have a signed purchase and sell agreement with the proper wording to make it a fully assignable contract, then YOU personally can advertise and/or market that particular contract for sell, but a Realtor cannot.
Raj
:banghead:why thanks for clearing that up RogerJ
I not so sure about this, may be it’s state specific? We were looking at leasing a house with an option to purchase and we asked the title company in our area about it. Our intent is to lease the house and live in it while we fixed another house for a specific time period. They said that we could do what’s called a double close. We would have the (legal right) to lease this house with the option to purchase as long as the purchase option is exercised before you close with the future purchaser. So we would close with our option and then sell to the new owner a little later in the same day. I am not sure why you couldn’t list it with an agent and have it be considered illegal???
I have talked to several Realtors and one said that in 10 years he has never done it and another Realtor said that he has done it several times over the coarse of 20 years. Yes Russ Whitney says it’s done all the time. You can believe about 10% of what he says. Call your title company and ask them what they think. I have heard other people on this site say you should ask your title companies if they have experience in the double close before you try it. Has anyone ever done this? I plan on using it someday.
Just as confused as ever!!LOL
NDI
Geez,
People, if you are NOT the legal owner, or you do not have the legal right to act as the owner (ie trustee, power of attorney, etc.) then a Realtor CANNOT list your property on the MLS, period.
That is pretty plain and simple. It doesn’t really matter how many people say that they’ve done it or not. If the state RE commission finds out that a Realtor has done it, then that agent will probably get hit with some high fines and possibly lose their license.
Just because a Realtor cannot list a property that you have under contract, does not mean that you cannot advertise and sell the right to purchase that contract from you individually. That includes double closings.
Raj
Roger J is right. You asked is it legal, not can you do it. In real estate people do things all the time that are not legal, we put tenants out without evicting them, we move properties from our names into LLCs without telling the mortgage company, we do wraps and lease options and call them owner finance, we tell the one guy he can’t move in because his credit didn’t pass, but it was really some other reason protected under equal housing. Just because it is illegal doesn’t mean it can’t be done. If that were the case if it was found out it would just be undone. The reason there is a penalty is so that you can weigh the risk versus the reward. If the odds of getting caught are low and the reward is great, that is the government’s way of saying do it just don’t flaunt it.
:banghead: why thanks for clearing that up RogerJ AGAIN
I do not look at this as is it LEGAL or not rather is it ethical?
There is a fine line between TRUE investors in the area you do not want to be on the black list…
Other question would be if you have the property under contract would it not show up twice on the MLS I am sure it would. If a property is under contract it still remains on the MLS just in case the contract falls thru…
Also why in the world would you make an entrance before knowing the exit?
If you are just trying to flip it to another investor and/or Retail buyer why not just sell the contract and not the house?
reo ,
Good questions but I find that most bank and hud contracts are not assignable.
Im not sure of your gesture of True Invester?
A lot of reo’s I find are from referals and are not listed yet on the mls.For example the one I contract in the living room of someones house.
That is so true they do not like to see and or assigns on the contract. That being said I have never had an issue with telling them everything is the same except the buyer’s name Closing will still be held on the same day I just have another investor in my circle that can get a better rate!
As far as the TRUE investors there are very few full timers that only invest for a living. I started on there black list and was happy to get off that list real fast!!
This business is all about the Realtionships you build and with whom you build them!
Robb
Hey all,
I was reading this post and wanted to ask:
I recently looked at land that was listed by an agent. 10,000 acres of grassland. (cattle country) There was a corporation with 5 principles owning it. They were set up so that they all had to agree in order to sell, refinance, etc. But four of them had no idea that the land was listed. It turned out that one of them wanted to sell and hoped that having an offer on the table would “bring the others around”. I got upset with the agent for wasting my time when the others had no intention of selling. I have been wondering ever since if the agent even had the legal right to list the property.
Just wondering,
DB
Robb,
Can you please expand on this? I would like to understand the reasoning and thinking that is involved in this.
Thanks,
DB,
Don’t know your exact state laws concerning the matter, and without all the info it’d just be a best guess, but…
I’d have to say yes, that the agent could list the property. If the land was held in a Corp, then all that would usually be required to list the property is the signature of the president/ceo or authorizing signor.
My guess is that the provisions against that property of listing, selling, etc. are provisions either within the company bylaws or within the setup of that particular piece of property. There would be no way for the agent to be aware of this until a contract was presented unless the signor informed them of it upfront which is doubtful since he was trying to go around the partners in first place.
Raj