Safest to Disclose Business and Personal Relationships
NAR ethics requires disclosure of personal relationships.
What about business relationships?
In this Pennsylvania case, the safe answer for risk management purposes is to disclose business relationships.
https://www.nar.realtor/legal-case-summaries/breach-of-fiduciary-duty-claims-denied
With the market doing well and inventory being tight, SCR hotline is hearing about investor flippers using equitable ownership interests from a contract to generate a flip listing for profit.
Be careful. Per the Pennsylvania case, real estate licensees who list a property and have been working with investor/flippers should consider disclosing this relationship with the investor/flipper to the seller…especially when the listing is potentially about to undergo this investor/flipper equitable ownership interest listing for profitable flip strategy.
Posted by : Byron King on 3/28/18