Enticing Listing Agents: Ethical or Not

[Aaron Rickett]

I've been reading a book about real estate investing and the author who shall remain nameless makes a brilliant recommendation when buying REO properties. However I am unsure whether the recommendations are ethical or not. Here is what is recommended:

The author is a real estate agent and makes a deal with the listing agent and offers to:

- Take care of letting client into the house for inspections 

- Get utilities turned on for inspections

- Complete all paper work

- Work with the title company on the title search

- Work with the closing attorney on scheduling the closing

- No need for you to show up to the closing

- I'll return your lockbox, sign and commission check to you at your office immediately after closing

- I'll also give you my half of the commission as a bonus, so you make twice as much on this deal.

The only thing you need to do is get the bank to accept my offer.

I am concerned because with this much incentive, is the listing agent really representing the bank? Is the listing agent commited to giving the best advice to the bank? How would this scenario hold up in court?

I am interested in hearing what investors, buyers agents and listing agents, and attorneys have to say about this tactic. 

If the above is not ethical, what line can you draw where it would be ethical? All of the above except the extra commission? All of the above except don't explicitly say that you want him/her to get the bank to accept the offer? What other arrangements can you make to form a great relationship with a listing agent while remaining ethical?

For the record, I think the book this recommendation came from is fantastic. I am just unsure about this one part of the book.