There are many investors (Realtors and clients alike) that are currently buying "options" on a short sale, then negotiating with the lenders while simultaneously trying to resell the home at a higher price. If successful on both fronts, the investor closes the property and simultaniously closes the home with the next buyer as well.
My understanding is that since the investor is not the full deeded owner of the home, they are selling a future interest in it and therefore it is an option that is being sold. The securities and exchange commission is the one that regulates this and not the real estate commission.
When I bring this topic up, I usually get a comment like "Don't worry, everyone is doing it"! That is why I came up with the following apparel line for class action attorney's:
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