Posted by passerby on August 14, 2006 at 18:04:38:
NO POST FOLLOWS.
Do I have a legal issue here? What should I do? - Posted by Marshall
Posted by Marshall on August 12, 2006 at 19:47:56:
I have an option on a property, single family home at 200k, the market price is 250k. I have a buyer willing to pay the 250k. They want to get financed.
- It appears I will have a seasoning issue. Essentially a double closing (to me, then to the final buyer) Banks don’t like that…Correct? Workarounds?
- Is there any way this could be construed as an illegal deal? I just got off the phone with my mortgage guy, who told me that since I’m not a broker, the above situation could be construed as me ‘brokering’ the deal, and I could wind up in trouble. True? Seems I hear of people doing this all the time.
- I can’t believe my only option here is to either exercise the option and wait 6 months to season, or sell the option to the buyer for 50k, then they finance it, which means far more money out of their pocket than the 10% they were planning on putting down.
Help!
I have a legal issue here? What should I do? - Posted by Max-Va
Posted by Max-Va on August 12, 2006 at 20:34:41:
Real estate agents and mortgage brokers have a tendancy to call everything they don’t know or understand illegal. Your buyer has to find a lender that has no seasoning requirements. Call around to some brokers and you will find one, there are alot of them out there.
Most lenders will work with an assignment fee due to the size of it they may require a second independent appraisal. The Hud-1 will show the purchase price as 250K and they would need 25K plus closing costs to get into this with 90% financing.
Re: I have a legal issue here? What should I do? - Posted by passerby
Posted by passerby on August 13, 2006 at 20:24:02:
Don’t be so hasty as to dismiss the broker requirements. Most agree that a double close with no intention of holding the property appears to be brokering (plenty of articles out there on this subject). Put up your own money or hold it for a little while (some say 1 month - 6 months, some say 1 day).
Just an additional $0.02
Re: I have a legal issue here? What should I do? - Posted by JohnBoy
Posted by JohnBoy on August 13, 2006 at 20:50:14:
It does not matter what most may agree on. It does not matter what something may appear to be. It either is or it isn’t. There is law on the subject or there isn’t. No law, no illegal act.
There is no law that says you must purchase a property with the intention of holding it. If you know of any such law then post it.
The key thing missing here is “acting for another” which would be construed as brokering. Acting for yourself is not brokering in any way, shape or form. The law is very clear on this.
If you find a seller selling a property and then you find a buyer to buy that property from the seller, then that is acting for another. If you are paid a fee from the buyer or seller for bringing the two together then that is brokering.
If you find a property and YOU get it under contract and then YOU sell your contract or the property then that is acting for yourself and is in no way brokering. It does not matter what your intentions are.
Like I said, if you know of any such law that states differently then post it. Plenty of articles on the subject mean nothing. Articles on a subject are not the law. The law is the law regardless of what someone elses opinion is in an article they write or what someone elses opinion is on what something may “appear” to be to them.