Question
Is this is a RESPA violation?
If I represent a seller as a listing agent, and let's say I've disclosed to the buyers and their agent, before they even brought me an offer, that they will be responsible to pay a $3K negotiation fee to "XYZ Short Sale Negotiators" upon successful close of escrow (for illustration purposes only; not a real company, as far as I know), would I have also been required to disclose to the buyers, up front, that I am a principal/broker for "XYZ Short Sale Negotiators"? Would you please cite a specific RESPA law/code (or other pertinent RE law/code) that I might be in violation of? Thanks for your help!
2 months ago - 2 answers
Best Answer
Chosen by Asker
Of course.....you always must make all parties in the transaction aware that you are a principle of any company or business involved in the transaction. Just like if you were a principle in a mortgage company or escrow company is involved. It is even more flagrant if you are forcing the buyer to use your own company. If you didn't disclose that, kiss your license good-bye if anyone files a complaint.
by Glenn S
2 months ago
Asker's Rating: 