During a meeting with a prospective tenant (I'll call her Jan) it came out that Jan's house is listed in a "short sale" and she hadn't gotten any activity on her property -- it's been listed for over 60 days ... While we were speaking, I told her to call me if she had any questions or needed anything. And when she's ready to locate a place to rent, I'd help her. I also mentioned that if she had any questions regarding the sale of her property, I'd help.
About a week later, Jan called me and asked me to look over some paperwork her agent gave her to sign. Apparently this agent told Jan that an investor wanted to purchase her house. I told Jan I would look over the paperwork - and asked that she drop the papers off at my office.
I picked up the papers earlier this week -- and I'm outraged that this realtor told Jan that an investor wanted to buy her house!
It was an Option Agreement - given the Optionor the right to negotiate with the lender on Jan's behalf and also gave the Optionor the exclusive right to purchase the property for any amount they could negotiate with the lender. In addition, this agreement allowed the Optionor to share in the commissions on the sale of the property. This agreement would have basically given any rights Jan had to the property over to the Optionor - except the mortgage payments.
I sat down with Jan yesterday and we went over this "investor's contract." I told Jan I wouldn't sign this or anything like this. I also told her to tell her realtor if she has an investor interested in purchasing the property, to present a Sales Contract.
I can't believe a realtor would actually tell her client that this was a contract to purchase her house! This realtor has done nothing except put the property in the MLS and put a sign in the yard -- there are no photos, minimal description of the property, no lockbox -- it's a shame!! I'm glad Jan had enough knowledge of what to expect that she consulted with someone before signing this agreement!!
Realtors such as this one are giving us as a whole a bad name!!
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