Pitfalls of being an agent?

Question

Hey guys,

As an agent, what problems would I run into if I were to approach motivated sellers who are in pre-foreclosure and foreclosure?  I am coming across several of these deals and have thought, why pass these on to buyers if they look like something I can work with myself.

Here's an example: If I wanted to approach a seller with the idea of financing subject to seller's loan, what exactly can I not do that those without a license can, if any?

I know I need to disclose that I am an agent and will write a provision into the contract that states something to the effect of "Buyer is an Agent and  represents himself and not the seller in this transaction [thoughts?]."

I know this sounds greedy, and I don't mean to come off as such, but if I can get the seller to agree, think I could still ask for a commission?  Just a general question, really.

Thanks in advance, you guys are awesome!

Justin Leonor · Answer

perfect.  although it contradicts the first response, this answer makes more sense.  you sound as though you are an agent as well.  if so, how have you faired balancing your duties as an agent while pursuing your own investments?  Anyhow, thanks for your replies.

Richard F. · Answer

As a licensee, you really can't have your cake and eat it too...

Either A) you are offering your services as seller's listing agent;
or B) you represent someone else, possibly an entity of which you are a part, and which is fully disclosed, as a buyer's agent; 
or C) you are acting as an individual negotiating a deal with an unrepresented seller, fully disclosing the fact you are a licensee. No commission is involved.

If A, you have a fiduciary duty to obtain the best price, properly market, etc. etc.
If B, your fiduciary duty is to the buyer, and the buyer is paying your commission as negotiated.
If C, there is no commission as such, you just make your best deal. Once you have a contract, that becomes saleable to one extent or another...

Calixto Urdiales · Answer

Hello there Justin-

There is all ways a ethical way to do things so that you treat people the way the need to be treated. So in short you can seek a commission as long as it is within the lines of the law. But in the current situation that you provided above there are a lot of things that can be done! Meaning that there are many roads to be taken now which ever one you decide to take is up to you! But think hard before deciding and look into the matter from a lawful perspective. Once again it will be fine to seek a commission as long as you stick within the boundaries of the law!