I REPRESENT THE SELLER - BUYER IS NOT REPRESENTED NOW WHAT?
Yesterday I received a call from my Seller who had received a call from someone who wanted to buy the property that is listed. These people have family roots in the area and the land actually belonged to them prior to the Seller's owning it. They explained to the Seller that they wanted to purchase the property back now that it is on the market.
My Seller immediately called me to discuss the situation. She let me know that they did not intend to use an agent because they "believed" it would save everyone some money. I advised my client to explain that per their listing agreement, the commission had already been set.
The caller asked for my number and I received a call from her. She asked me to send her a blank contract so that she could write up an offer to present it to us. After discussing this with my Broker of record, we concluded that we needed a special letter outlining the fact that I represented the Seller and that all parties understood this. Additionally I sent the other party an Information About Brokerage Services.
Here are a few of the concerns should this actually materialize into a valid offer:
1. What happens if the contract is filled in incorrectly by the buyer? As the Seller's agent, it would be my duty in regards to the fiduciary duty to them to strike the incorrect information and have everyone initial just as we would during a contract negotiation.
2. What if the unrepresented Buyer contacts me for advice? I must treat all parties fairly and honestly but cannot give the buyer any advice or opinions. I would advise them to discuss with an attorney.
3. What if the buyer asks to be paid the commission that a buyers agent would receive? In Texas, only a licensed real estate broker may receive commission.
I am sure that there are a lot of "what ifs" with this type of situation. I cannot stress enough that all parties of a transaction should be represented by a licensed real estate agent or an attorney that knows real estate law. With a real estate transaction, there are just too many scenarios that could become a problem without having the proper representation.
This will be an interesting transaction so I will keep you posted!
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