If I had a property listed with an agent but canceled our contract, can I sell it owner financed to someone with the knowledge they will be reselling probably within 60 days?
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If I had a property listed with an agent but canceled our contract, can I sell it owner financed to someone with the knowledge they will be reselling probably within 60 days?
Asked on July 30, 2015 under Real Estate Law, Arkansas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
You may sell your property to anyone you like, whether or not they will be reselling it. If your question is, can you avoid paying a commission to the agent, you will have to pay them if the person you are selling it to saw it while the contract with the agent was in force; and would likely have to pay if that person then resells to somone else who saw the home while the agent showed it, since a court in that case could easily find that this transaction was a deliberate attempt to circumvent the obligation to pay the commission, by having an intermediate "straw man" or confederate buyer, and if a court believed that to the case, the court would look to the reality of the situation--that someone who saw the house while there was a contract with the agent ended up buying it--and find that a commission is due.
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