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Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 102584
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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Selling my house, short sale. I have accepted an offer from

Customer Question

Selling my house, short sale. I have accepted an offer from a investment company and after accepting I find out that my agent owns 50% of the company. He has another agent in his office representing the buyer and he is representing me. He has never disclosed this to me, I found out by doing a Google search on the LLC that made the offer. He never listed my home on the MLS and I believe the bank required him to do that. I want to get out of this sale and go with an agent that I can trust and will try to get somewhere close to market value so that I don't possibly have to pay income tax on the difference. How can I get out of this contract, if I call the bank and inform them of his shady dealings, will they put a stop to it? Is this even legal?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Ely replied 2 years ago.
Hello and welcome to JustAnswer. Please note: (A) This is general information and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms; and (B) the site allows experts not to participate in phone calls and I may or may not be able to participate in this feature.I am sorry to hear about this situation.1) The agent should have disclosed any conflict of interest. By not doing so, they were arguably unethical in their dealings. One can file a complaint with the CA Bureau of Real Estate - see HERE - and let them investigate. They can take administrative action against his license if they feel that there was any wrongdoing.2) However, him owning 50% of the company in itself does not void the contract. Unless the Bureau can persuade them to void the contract (under threat of administrative action if he does not), then the contract stands. In the eyes of the legal system, the contract is still binding even if one of the owners of the buying company may have had a conflict of interest.3) Calling the lender may or may not help. The lender has the discretion to agree to the short sale, or not. They can disagree to it if they want to, but for their own reasons. So if they think that you could get a better price (when it goes on the market) after one explains the situation, then perhaps, they will not agree to the sale. But it is their decision.4) Yes, this is a legal contract. Again, the agent's interest in the company does not void the contract automatically.Good luck.Please note: If I tell you simply what you wish to hear, this would be unfair to you. I want to be honest with you and sometimes this means providing information that is not optimal. Negative ratings are reserved for experts who are rude or for erroneous information. Please rate me on the quality of my information; do not punish me for my honesty.I hope this helps and clarifies. Gentle Reminder: Use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how I get credit for my time with you. Rating my answer the bottom two faces/stars or failing to submit the rating does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith.
Customer: replied 2 years ago.
I planned to file for bankruptcy once the short sale is final. If I file before the sale is final, what will that do to the sale? At lest postpone it it for a while?
Expert:  Ely replied 2 years ago.
Yes, indeed. A bankruptcy should postpone the sale, although there is no guarantee that it will stop it all-together.Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.