All Forum Posts by: Joe Turner

@Joe Gore, Yes. I even included my cell phone number and all of my contact information.

@Joel,

If they request I sign an affidavit, I will happily do it. My main purpose in submitting the complaint isn't revenge; we moved on immediately when I finally realized what was going on. We didn't loose any money, and I personally feel grateful that I learned a life lesson for free.

However, when we attended the open house and got the same "it's a little utility work, and I think most of it has been done," I saw a pattern of deception.

When I saw a family stroll in with a very young baby I realized that someone might not be represented, might believe them, and pay close to list price. The LA gets both sides and in a few months a jack hammer is outside the breaking the sidewalk and a three lane county road. I don't think it will end well.

Most of the information on the state's website seems geared towards people who in the bowels of a dispute, or after the ink is dry. So I don't know if they will investigate, but given my conversation with an investigator I'm inclined to believe they will at least make a few phone calls.

I just emailed the complaint. It took me several hours to type everything, print and scan emails to pdf documents, go back to my call notes, and verify everything was factually correct.

If anything happens, I'll update the thread.

On a side note, while checking everything out, I found out that the listing agent was fined by the State in 2004. So this would not be the first time she has been investigated.

I also see that the property is listed on Redfin in the contingency phase now.

I wonder if the investigator is going to interview the buyers to see if she told them, as she told us several times, "it's just a little utility work, and I think most of it has been done already."

I called the state agency that oversees real estate licensees in my state. After describing the situation, the investigator stated that it appeared that there were several violations and they highly encouraged me to submit a complaint.

I'm typing it up now.

I'll try to be brief.

I was shown a house and the MLS remarks had a city project id, there was an assessment and the payment to the buyer from the city for replacing a retaining wall and fence.

My buyer's agent called the listing agent, who casually explained that it was a little utility work and sent a URL to some newsletters the county sent out several years ago when they were voting for the project.

I called the city and talked to someone in the engineering project to see what was up. The city engineer basically stated that the project would be very disruptive, and would take place over three years. The street would be closed to all traffic and be completely torn up; they would be digging down 20 feet to replace a 36" water main, within feet of the house. Also, they are replacing sewer (150' per day) and putting the power lines underground. Moreover, they were going to excavate in the front yard and behind the house. Construction is going to start in April, end in November, and resume the next year, and finish the following year.

I felt like the listing agent was misrepresenting, but my agent said he expects the other agent to be ethical and professional.

I offered $145k (listed at $175). The seller's agent was not pleased. My agent states that the listing agent basically told him that she would not present the offer to her client because it was too low. Apparently, there was some back and forth and I got the same URL in an email. I called the city again, got more information. The sellers had negotiated (and was paid for) a temporary easement from the county, and also negotiated a payment plan for the assessment with the city. I hammered out an email with the facts from the discussions with the city, and cc'd the listing agent.

So I know the sellers knew of the construction. They met with both county and city personnel.

A few days later, I asked my agent to see if the buyers had received the offer.

The listing agent sent back a terse email to my agent stating that they are taking the house off the market rather than deal with offers that low.

Fine. Maybe the listing agent got ambushed by the seller not telling her.

Today, we start looking at open houses and guess what? They had an open house. I attended. I saw they had MLS printouts and I asked about the city project. The agent said, "Its a little utility work; I think they did most of it already."

I feel like the listing agent is misrepresenting by omission material facts. What do you guys think? Should I make a complaint to the state? Or just chalk it up to the low ethical standards in the real estate industry.

I own a S corp incorporated in Delware, registered to do business in Minnesota. I also am the sole owner of an LLC in Minnesota. Both these businesses are non-real estate businesses.

So here's my advice:

My advice is to talk to an attorney AND a CPA, because your decision intersects state and federal tax laws. Each state taxes corporations differently. The CPA will be concerned with tax law; the attorney will be concerned with liability protection.

There are two reasons for incorporating a business: 1) liability protection and 2) taxes.

I know the members here are intelligent, but I wouldn't want to make a decision that might cost you later by relying on an internet forum.

An S Corp is a regular corporation that elects to be treated as an S Corp by submitting a form to the IRS. Some states recognize S Corp status, some don't. Having too much passive income from real estate turn your S Corp into a "personal holding corporation" and you might get slammed with a 35% corporate tax rate. There are also issues with paying yourself a salary versus dividends, triggering an audit.

Some states disregard any liability protection for single owner corporations. If someone sues your company in one of these states, no amount of paperwork is going to protect you. Piercing the corporate veil is a given.

If you are concerned with personal liability, you can purchase insurance.

Again, speak to an attorney AND a CPA. Some CPAs are more comfortable with LLCs so they recommend LLCs.

Before you call them, read up on the corporate structures as much as you can. Most attorneys offer a free initial consultation. If you do decide to form a Corp or LLC have the attorney draw up the docs for the first one, even though it is more expensive than doing it yourself.

After that you pretty much know what to file and can do it without them.

Thanks everyone for the suggestions.

I've was referred to two realtors. I've already interviewed one who has a five year track record in my area, and will be interviewing another one before making my decision.

My wife and I are looking for our first home. I contacted a real estate agent through Zillow, who started sending me some MLS properties. She suggested we look at another foreclosed town home. On Sunday, I met a real estate agent who showed the foreclosure, listed for $89k.

After gushing about her credentials (she is on the state board), she mentioned that she's received 3 calls about the property so far and that there is a lot of interest.

After looking around, when I was leaving, she casually suggested that I offer $100k. I thanked her for her time and left.

After looking around I figured out that the agent's broker is the listing agent. Conveniently, the MLS links she has been sending me don't list the listing broker.

When I emailed her to ask, she just sent me a doc that covers agency relationships. She never disclosed the relationship, only left me to discover it. I'm put off by the first contact. Two other RE agents never called me back.

Can anyone spoon feed me some tips on finding, interviewing, and selecting an ethical real estate professional?

That is not a contract; it is a poorly worded proposal.