Is it legal for a real estate company to buy a listing turn around and sell the listing for profit or malipulate the sale price?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it legal for a real estate company to buy a listing turn around and sell the listing for profit or malipulate the sale price?
A real estate company Im aware of buys homes that are undervalued or foreclosed
on and resales them at a tremendous profit. Also when a foreclosed home comes on
the market from a lender at a specific price this company dictates the price in
which to sell these homes. For instance this company has a listing for a house
for 50,000 , I sign a contract for 50,000 they won’t except it because they have
a contract on it themselves or they except higher offers to get better
commissions. Is this legal?
Asked on March 6, 2017 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
1) A real estate company is allowed to purchase homes itself; it can buy, sell, trade, etc. them "for its own account" (to borrow language from the securities industry) and is not limited to only acting as an agent for others.
2) If they own the home (i.e. they bought it), they have the right to decide which offers to accept and why, the same as any homeowner or other property owner can decide which offers to accept and why.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.