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Ask Attyadvisor Your Own Question
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 7061
Experience:  29 years of experience in General Practice, Real Estate Law and Estate Law.
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I am a real estate broker. Can a sellers broker or seller

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I am a real estate broker. Can a seller's broker or seller refuse to work with a buyer selected licensed lender?

Welcome and thank you for your question. I will be the professional that will be assisting you.

There was nothing in stated up front with regard to this matter? Which form of contract is being used for the transaction?


The RESPA violations only come into if the buyer is steered toward or required to use a specific lender.



This is a contract question.

Customer: replied 3 years ago.

there are no contract yet. Or the general question: Can a real estate seller request that buyer not work with a specific lender?


Or it is the buyer right to select any lender.


In Texas, I think the contract used in residential transactions does not define lender name. Just loan type as in third party finance addendem.


The Seller and/or agent has the right to request that the purchaser not use a particular lender. It is a contract matter. RESPA comes in when the purchaser is steered toward a lender or required to use one.

The issue is whether the seller/agent is/was up front with regard to this matter.
You cannot waste time and resources of the borrower.

There is nothing in Texas law or any other state law that prohibits the agent or seller from making this request or prohibition.

If this was not mentioned up front I would have an issue with this being added to the mix after the fact. Is this being mentioned because the seller does not want to sell to the buyer?

Please do not hesitate to ask me any additional questions that you may have with regard to this matter.

Attyadvisor and other Real Estate Law Specialists are ready to help you
Customer: replied 3 years ago.

Actually when the seller agent get the offer with the pre-approve letter from the buyer. The seller agent response to the buyer agent that the seller do not accept the offer because the buyer use that lender.


I just like to know if this is compliance.



Not after the fact. This needed to be mentioned prior to the offer.

Was the offer for the listed purchase price? Was the offer presented to the seller?
Customer: replied 3 years ago.

The property is on MLS. There are no such requirement on MLS. The offer was lower than full listing price. It was not mentioned before the offer. There were no communication between buyer agent and seller agent before the offer. After buyer agent submit the offer with the pre-approve letter from the lender to the listing agent, the listing agent send email back to buyer agent stated seller not accepting the offer as if the buyer use that lender.


The buyer get multi-loans from that lender before and satisfy that lender/loan originator.

I can see why this is troubling. If they are going to exclude offers based on the lender they need to be upfront with the exclusion. They should not be wasting prospective purchaser's time and money.

They have the right to reject a lender, they need to be forthcoming before offers are presented.
Thank you.