Legal Question in Real Estate Law in California

I am a bank employee in California. I found a property I want to buy but found out it is owned by the bank I work for. Would it be illegal to have someone else buy it for me then sell it to me or transfer title? If, it's not illegal, how long should the property be in the other person's name before transfer/sale can be completed? What are the dangers of doing such a transaction?

Thanks a lot.


Asked on 5/04/12, 5:56 am

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Before you resort to aything roundabout like this, why don't you simply ask your boss if it's OK to negotiate for and to purchase the property? Most banks, especially those owning mortgages, are large and departmentalized, and there is not necessarily any conflict of interest. If there is a problem, however, the method you suggest (employing a shill) does not get around the problem. By prearranging the purchase and resale, you would be in effect admitting you knew there was a conflict, and tried to hide it.

Read more
Answered on 5/04/12, 8:55 am

Mr. Whipple is 100% right. Unless there is some company policy, that would be a very strange one, there is no reason you cannot buy the house directly from your employer, as long as it is an arms length market value transaction.

Read more
Answered on 5/04/12, 10:08 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California