Investor, seller or both signatures on the Listing agreement

Seller has signed POA, Deed n all my necessay paper work…Bank wants a listing agreement…The broker Im considering said that I should let the seller sign the listing agreement, because it makes everything simple, n the bank will not question it.

1.My question is, should I, the seller, or both of us sign the listing agreement?

2.If I just sign the listing agreement, is it possible the bank may balk at this or request more paper work? What are all the possible issues that can come up.

3.If I allow the seller to sign the listing agreement can that some how put my deal in jeopardy, or put me in a weak position. What are all the possible issues that can come outta doing this?

Note:I have been reading all the threads regarding this topic, n theres a mixed oulook on this issue. I have been taught that the investor is supposed to sign the listing agreement, n the investor n the realtor are both contact points for buyers…Someone Please clearify…Thanks


This is a mess! 

Seller signed your - “POA - Purchase Option Agreement” and you created a “Hardship” package that included financial facts from your seller, you got the seller to sign all the documents and submitted a package to the bank (Lender)?

Bank came back and said “We want a listing agreement”?

If these are the correct facts, then the bank basically snubbed your offer and rejected it!!! They have now requested the owner list the property in hopes of finding a legitimate offer from a real buyer: IE An actual “PC - Purchase Contract” with a real closing date, a loan approval and a few thousand dollar escrow deposit.

If the Bank (Lender) liked your offer, you would have recieved an exceptance letter, the fact the seller signed has no legal strength as the bank (lender) has to agree to the deal, or No Deal! The lender does not want to give your POA an approval as they know you intend to make a profit at there expense, what they requested was there borrower is to list the property with a realtor with there signature, as you do not have an interest in the property.

Read the “Short Sale in NC” posting and the “Short Sale Fraud - Freddie Mac Drops a Huge Bomb on Real Estate Investors” posting!


Gold River

I have to disagree… That doesn’t mean the bank rejected it… It means someone wants a piece of paper in their file… Either a listing agreement or a reason its not listed. The second one is easy to supply as the reason is that a buyer is buying…

However if you need a listing agreement the key is that the lender is trying to determine that the property had sufficient time to attract buyers before your offer was accepted…

As for signing the listing agreement… You are the seller aren’t you? the seller and the borrower typically are two different people in an investor short sale senerio… Nice thing about my signature is that you cant tell who it is or what it says…

Happy hunting


Hi Michael,

             I have long admired your wisdom and educated response to investors questions, however I have to respectfully disagree with your response!

The writer of the original posting Hansleyward, did not state in writing as to the state he invests in, however for example; Arizona has a foreclosure process that includes a 90 default period and a minimum 90 day foreclosure period and normally upwards of 120 days to carry out a foreclosure, requiring filing and publishing for 4 consecutive weeks and a property posting at least 20 days prior to a trustee sale. Trustee sale must take place within 10 days of the last publication.

Now, every US state has different foreclosure statutes and different periods of time available to work out a short sale offer. Now in a state for example like Arizona the original owner can redeem up to 5 days prior to trustee sale.

Now here in Arizona a foreclosure filing is pretty standardly made prior to lenders excepting a “Short Sale” package, and most lenders I have worked with have rejected the short sale package if the foreclosure filing has not been recorded. Now virtually every short sale I have ever done in Arizona I have never been requested to ask the seller to list there property.

If my offer price is within exceptable limits for our market, provided an offer is made with a contract (rather than a POA - Purchase Option Agreement), it is accompanied by a reasonable earnest money check (Payable to a local title company) and a LSR (Loan Status Report), a Transitional Funding Approval Letter or my Banks Letter of Credit for cash purchase and a legitimate closing date and minimum or no contingencies then most lenders will not request any listing and there is plenty of data readily available to know what the general consensus of market discounts has been being excepted by competing lenders for that zip code and market. (For Arizona lenders have been excepting about a 20 to 30% discount on a pristine property from fair market value.

The last time I heard of an investor who was asked to have the seller call the lender and lender requested a listing on the property, the owner (seller in default) signed the listing agreement and the investor who I knew nothing about, I guess thought he had the right to buy the property and was upset when there were four offers and the price was bid by contract offer up by $45k dollars and sellers agent finally told the guy he had to submit a new contract or he was not in the running, this guy stood around for almost 3 months thinking he bought the property when all along his original offer had been rejected!

I think you presumable misunderstood the original post as there is the original owner (Selling Party in Default) and the investor (Who originally made the POA Offer and put together a Hardship Package) now as a Licensed Real Estate Broker in California I am sure you were not encouraging someone to sign a legal listing contract when they do not have a legal position to the property? The lender is certain in this situation to want a copy of the listing agreement for disclosure. (Parties to the listing contract must write legible in order for agencies to recieve commissions and title to transfer to buyer.)

It is probable the lender rejected the offer because of the POA - Purchase Option Agreement (If the offer was made as a straight purchase agreement with all the acompanying buyers documents and check the outcome would be different) and depending on how long the foreclosure period is time is probable of the essence.

I have never had a lender willing to help me when I intend to make a profit at there expense! (Shortsale) If you know of lenders willing to help us make a profit at there expense and with the lenders help please let me know, because I sure haven’t found one and I have never had a lender tell me (Buying Investor) to list the property to find a buyer to help me flip the property and make a profit?

Have a great weekend Michael.


I actually think disagreeing is great… Nice that we live in a Country which allows it…

However all I know is what I do… And the Board of Realtors actually took my position to CAR Legal (California Association of Realtors) and they made the decision that the seller can be someone other then the borrower or constructive property owner. And the Seller is the one who authorizes the listing.

Now I go a little further with everything I do… My agreement to purchase with the owner authorizes me to list the property although clearly I do not need their approval. However I also have them deed the property to me although I never record the deed. Once I accept the deed from the Grantor as the Grantee then it (the property) is mine. As the “Seller” I decide which offer “I” will accept.

My agreement with the owner also indicates that I am going to resell the property. It indicates that the buyer is a Trust. It indicates that I am going to market the property. It creates a 12 month period to buy the property and allows for the termination of the agreement at anytime prior to the close of escrow without recourse by owner. It also creates an exclusive irrevocable occupancy relationship between the buyer and the owner. heck I can even raise and lower the price without the agreement of the owner. If interested here is a link of the agreement I use… Its a short version of my 12 page contract.

I do understand your thought process and it is the way a lot of folks do it… I just do it the way that works for me…

Happy hunting


First off, thanks for the responses.

Gold River you have opened my eyes to other possibilities, however i beleive Micheal Quarles response relates to my situation.

I am in investing in New York City….The seller signed a Power Of Attorney (POA) not a Purchase Option Agreement. The seller also signed a Deed (essentially signing the property over to me), and a Purchase and Sales Agreement, I intend to record the Purchase and Sales Agreement at the county court house, because this will validate my interest and protect my deal…I sent in my package to the bank, minus the POA.

The bank actually left me a message, and told me their BPO came in at 249,000, (I offered 149,000) and the loss mitigator told me I need to counter.

I am going to counter, and have decided to list myself as the seller. Michael Quarles I wish I read this thread before I signed, because I digitally signed the agreement via PDF File, when I should have hand signed it. I hope the bank doesn’t question anything.

Thanks again, Feel free to add more input