Legal Question in Real Estate Law in Florida
Buying a house....broker has an interest in the property
I've found a house I really would like to buy and after doing some research I've found a few things I'm concerned about. It seems to be way overpriced considering the neighborhood comps. It sold in 2005 for $330k, and the last owner paid $415. He had 2 mortgages, one for $332 and one for $83 (100% financed) the mortgage company went out of business 1 week later. The house in now in a short sale, and the broker the bank is using, is now the seller. He says he 'owns the house in a land trust'. I'm assuming that he knows what the bank will accept and he is looking to make a profit between what the bank will take, and what he can sell it for. He hasn't filed the deed to himself yet. Who's name goes on the contract? Who decides yes/no on the offer-the broker/owner or the bank? He is looking for $360. He does not have any disclosures from the previous owner and says since he is the owner now and never lived in the house, he doesn't have to provide one. I will have it inspected, but I'm more concerned that my offer, which may be accepted by the bank, will never make it passed the broker/owner because he wants to wait to see if he gets a better offer. I was planning on starting with an offer of $315, going as high as $330.
2 Answers from Attorneys
Re: Buying a house....broker has an interest in the property
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
It certainly sounds as if the broker is in violation of various rules promulgated by the Florida Real Estate Commission (FREC). The broker cannot insert himself into the deal without the Seller's knowledge as it sounds he is. You need to consult a qualified real estate attorney to review the broker's actions and to represent you in this transaction.
Scott R. Jay, Esq.
Re: Buying a house....broker has an interest in the property
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
It certainly sounds as if the broker is in violation of various rules promulgated by the Florida Real Estate Commission (FREC). The broker cannot insert himself into the deal without the Seller's knowledge as it sounds he is. You need to consult a qualified real estate attorney to review the broker's actions and to represent you in this transaction.
Scott R. Jay, Esq.
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