As an AZ real estate investor, *IF* I was to get my AZ Real Estate License;
1) Is there any conflict of interest if I meet with a potential seller, find that they would have to bring money into closing, and instead of listing their property, we agree to a private sale between the seller and myself? (Other than making proper disclosures)
2) Is there any conflict of interest if other Real Estate Agents send me leads on potential sellers who would have to bring money into closing and the seller and I complete a private sale? (Again, Other than making proper disclosures)
3) Would a Real Estate Attorney/Escrow Attorney accept and complete the Escrow on these transactions?
Judy Feuer ZimetReal Estate AttorneyCarefree, AZ ·
1) Yes. If you are meeting with Seller as Seller's agent, you owe Seller a fiduciary duty, which is the highest standard of care, to act in Seller's interest. Also, as an agent, you cannot act as an agent until and unless your license in "hanging" with an AZ licensed broker, with whom you will have an agreement which prevents acting in the way you propose.
2) No. Although the agents may be opening themselves up to problems, you are free to act for yourself in your transaction as a non-agent.
3) Yes.
If you are interested in buying a property which involves the seller having to "bring money into closing", then you are referring to a short sale. Typically in any short sale in Arizona, the lender will want to see a listing agreement to know that the seller has tried to get the best fair market value offer. You would certainly need to disclose in writing that you are a realtor, once you receive your realtor's license, in any purchase transaction. Regarding escrow/closing, you need to close through a title company, not through an "escrow attorney". I agree with the previous attorney comment that you need to obtain legal advice from a real estate attorney to better understand (1) your obligations as a potential buyer, (2) your obligations as a realtor (3) a title company's role and (4) the short sale process and (5) various conflicts of interest.
James E MitchemEstate Planning AttorneyDenver, CO ·
It is hard to make sense as to what you are asking. You would be well served by engaging the services of an attorney to review fully what you desire to do and who may be able to help you avoid mistakes that could get you into trouble. The expense of a good attorney is just part of the costs of engaging in business.
