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Updated almost 8 years ago on . Most recent reply

User Stats

149
Posts
135
Votes
Kelly Rastatter
  • Investor
  • Chattanooga, TN
135
Votes |
149
Posts

Buying a house where flip is financed by selling agent- Conflict?

Kelly Rastatter
  • Investor
  • Chattanooga, TN
Posted

We are looking to put an offer on a property that has been grossly overpriced and now on the market over 200 days. We are making an offer that is obviously WAY below even the current marked down price. We just found out that the listing agent is also the financor for the investment company that did the rehab and currently "owns" the property.

The concern is that he may have a stake in the profit (or loss, really) and will influence the seller. Is this a conflict of interest and should he disclose this since he financed? Would he have to disclose it as owner/agent if he has a stake in the profit/loss?

Is there any recourse, as buyers, if it is a conflict?

  • Kelly Rastatter
  • Loading replies...