Real Estate Agent/Relative.

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homer_simpson

homer_simpson

Well-known member
I always wondered this.  If your father was your selling agent on a property, would he need to disclose this to the listing agent?

My friend told me Chase bank didn't sell him the short sale home to him because he was related to his agent.. is this normal? 
 
Yes it must be disclosed.

No it is not normal.

There is a disclosure form that Chase uses on their short sales for everyone to sign (buyer, seller, and agent/s) to identify if there are any familial relationships, but it is not a deal-breaker.

-IR2
 
When in doubt, disclose.  What Chase did is definitely not the norm.  It's that the seller can not be related in any way to the buyer.  I also found out that most short sale and REO lenders will not pay commissions to buyers who represent themselves in a transaction.  Obviously, you have to disclose if you represent yourself in a transaction. 
 
Yeah totally weird.  He's going to call Chase to ask why.  My friend and his father did disclose they were related in the offer. 
 
USC- Exactly.  He told me that if they sold the house to him, they wouldn't compensate his agent a dime.  I told him to just ask for closing cost and pay his father a flat fee on the side.
 
One reason I could think of bank being reluctant to work with buyer who is related to the listing agent, is that he may not be serving the bank properly. There could be better offers out there but because the buyer is related to him, he presents that one to them instead.
 
Sorry I should have clarified.  Selling agent meaning the Agent representing the buyer of the property. 


I think they limit this because the buyer is already getting a "sweet" deal, if the buying agent is related to the buyer, they may give them some of their commission, etc etc..
 
homer_simpson said:
Sorry I should have clarified.  Selling agent meaning the Agent representing the buyer of the property. 


I think they limit this because the buyer is already getting a "sweet" deal, if the buying agent is related to the buyer, they may give them some of their commission, etc etc..
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You don't need to work with a buyer's agent who you are related to or are friends with to get some of the commission kicked back to you.  ;)
 
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