Real Estate Agents - Sneaky!

This story is an example of just how sneaky agents can be.

In 2005 the “One Bad Agent” had a listing for a house near the ocean. It apparently was illegally built in the (Maritime Zone (within 200 meters of the ocean).  The agent was unable to sell it for the asking price so he bought it for himself at supposedly one half of the asking price.

Well, in 2006, the agent decided to sell it. When the property was promoted nothing was mentioned about the facts:

• That the property may not be a legal structure.
• The agent apparently did not disclose that he was the owner.
• The agent apparently still charged their normal buyer’s commission.

Here are the things I object to about this transaction:

• Talking someone into buying a property with a known defect - that the structure is illegal - just shows how much you need to be on guard when dealing with any agent.
• I don’t think anything is wrong about an agent selling their own property for a profit but, basic ethics dictates that they should disclose that they are the owners.  This is one more example of why some agents don’t want you to find out or talk to the real owner.
• Charging a buyers commission on selling your own property, is like throwing salt on a wound. Why doesn’t the agent just state the real price?

The agent’s reply was that the client bought a property, that if it were legal, would be worth ten times the price they paid.

If the buyers had followed the advice on buying property and used a decent attorney, they may have not bought this property, or at least they would have been more educated on what they were buying.  I am guessing that this agent told the buyers to use his attorney as they normally do and it is a perfect example of why you should use your own attorney.