I have signed the listing agreement and understand I am the SA. But I would like to be a transaction broker and not a SA. In a traditional listing, you would establish agency with the client then have them sign a transaction brokers agreement. How do you, or can you, establish a TB when listing an REO.

Any other good advice for GRC?

TIA!

....?

Difference between TB & SA is??

Same thing I thought..?

Transaction broker is basically going through the steps to close a home. You are not really representing anyone in the sale therefore liability is low with this. Sellers agent is representing the seller in a sale. In this instance, the seller doesn't have any knowledge of the home or its condition. In Missouri, the laws read its not what the agent knows about the property, its what the agent should have known about the about the property which holds a lot of liability. It is a CRAZY law because it really puts the agent and their broker at risk of being drug into law suites that the agent/broker had no way of knowing such as water did seap into the basement after a heavy rain or the homeowner caulked in the cracks in a basement wall and painted over to limit the possibility of being found during inspections.
I use TB when selling builders homes or investment properties where the owners haven't actually lived in the property. In almost all cases, the owner in those situations don't need to be rep'd but need to have the property marketed and then have the agent get the property to closing. So that is my reason for wondering if there was a way to move into a TB with selling REO properties. I don't see it much on my MLS that listing agents of REO property being TB, but doesn't mean it cant be done

SA has fiduciary, TB does not. Liability issues make TB preferrable, how can you explain to asset manager that you will sell but do not want fudiciary relationship. If the risk is that big of an issue perhaps reo is not for you, which is ok.

I agree with Crash - if you're this concerned at the start about risk, then REO is probably not for you.

The sellers (banks) have an addendum that the buyers sign saying they know nothing of the condition of the property and cannot disclose any defects. Call an attorney that you deal with - I don't see why this wouldn't cya as it does everywhere else.

Crash - I disagree. There is still a fiduciary responsibility of the agent to not give away information about the seller or their motivation. You cannot tell the other party what the seller has said their bottom dollar amount is. You are still working for the sale to go through and uphold the integrity of both sides. No fiduciary duties would be to have the seller/buyer not rep'd at all in the trans. And really because your licensed to sell real estate, there is an underlying duty there. CYA!

Where things get hairy is that you cannot give your "advice" on pricing, if the offer is a good deal, etc. You can provide them comps and let them make their own decision on these issues. I don't have any experience listing an REO property so I am just going on my past experience in other situations. But with most builders/investors, they have a dollar amount in mind and tend to work off those numbers to base whether an offer is acceptable or not. I would imagine banks work in much the same situation and from what I have read off AOL, the hardest part of working with a bank is getting them to price the property to sell. Kind of the case with the property I am listing

I think it is important to try to limit your liability for yourself and the brokerage. The agents/broker are usually the first to get the knock at the door if there are problems/surprises with the transaction. Just looking ahead to keep out of frivolous trouble. So I was just curious how agency works with listing REO properties and if anyone used TB. And maybe I am taking this to a place that isn't necessary. The buyer signs a ton of disclosures stating the seller makes no warranty, get inspections, etc. But being that the seller is shedding all liability for the listing, the broker is exposed.

Conecept - I am not lying awake at night with worry now I have a listing...haha... But just trying to shed liability. After thinking about it, I do agree with you about the disclosures and should CMA. I do appreciate the points of view. Real estate is liability. No two way about it. Just wanting to limit it.

I've seen REO agents in my area have their own disclosure that they make the buyer sign in addition to the lender's. Maybe you should work with your attorney to come up with something.

After reading your post again, I am wondering what type of things do you think you could be held responsible for that you "should have known"?

I too have my own disclosure stating it is my companies recommendation the buyer get an inspection. This is a great measure of reducing liability.

The "should have known" sorta leaves things wide open for anything. I can sorta understand the law since there are possibly some less than outstanding people out there...haha... But because the way things are worded it does leave things open. CYA is something our Realtor Assoc stresses because of this law in Missouri. I am a person who looks at all angles and just trying to be sure all angles are covered.

I don't know if there is really anything I should worry about. All of you are right in that the sellers have the disclosures. And what you stated should further that more. That should be enough if that has been your practice as well. You have a lot more experience in this than I.

I am going to take it that TB in the REO world is non existent.

Thanks for your help with this