Posted by John Merchant on January 31, 2010 at 10:45:11:
No inherent wrong in a REA buying or obtaining option on a property but he/she in most states has to divulge and disclose to the property seller that he IS a REA.
If I were drafting the P&S Agreement I’d take some pains to really spell out in detail that I am a REA but absolutely am not taking a listing or otherwise representing that seller…also that I’m expecting to make a profit on it that I’d not be sharing with that seller.
Also I’d advise you to clear this with your RE Broker as he/she might not like your doing this deal and would have the right to terminate you if you proceed.
That REB would be sued along with you on anything going wrong in such a deal