Foreclosures
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 13 years ago, 07/08/2011
Conflict of Interest in Negotiation?
Hey guys, I have a lengthy scenario and a few unique questions so please bare with me.
I am getting my real estate license right now to hopefully broker some deals and make some money to later put into starting a real estate investment company. Let's say two other partners and I start an LLC to invest in real estate and we get a homeowner to come in and do a short sale. After the homeowner comes in he says lets do a short sale so we sign a purchase agreement, I get him to sign a document allowing the LLC to negotiate on behalf of him with the mortgage company, I get him to sign a document allowing us to list the property on the mls for resale(during negotiations), and also I get him to sign an agent contract saying I am his real estate agent during this transaction. So the next day I or one of my other partners(on behalf of the LLC) contact the bank to start negotiations.
Is there a problem here? Would it make a difference if it was a partner talking to the bank instead of me (for LLC)? Conflict of interest? Can I represent the homeowner and My company who is trying to buy the house? Also say we did get it and resell it, do i just pay my broker out of my commision or of the actual profit my LLC makes?
Sorry if this doesn't make any sense. Any help would be appreciated.
Thanks,
Daniel