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12/26/2007
Intermediary Agent Scam


An Intermediary Agent represents the "best interests" of both the seller and the buyer.  In fact, an intermediary agent has a fiduciary duty to both the seller and the buyer at the same time. 

So, examining this paradox, you find that the seller's best interest is to sell the house for the most money and the buyer's best interest is to buy the house for the least amount of money and an intermediary real estate agent represents both interests at the same time. 

Who do you think will win out?  Well, how does the agent get paid?  From the sale of the house.  The more money it sells for, the more money the seller makes. 

So it no surprise that I have now encountered multiple intermediary agent cases where the buyer purchased a home WITHOUT ANY SELLERS' DISCLOSURE NOTICE.  The very Sellers' Disclosure Notice that the intermediary agents is supposed to have his other client, the seller, prepare. 

Or even less surprising is when the buyers purchase the house without inspections.  Ordinarily, there real estate agent pushes what I consider to be a fairly useless inspection, but when the agent is working both sides...err, I mean working "for" both sides, there is no inspection. 

Mark Cuban, the owner of the Dallas Mavericks, said that "There is a sucker in every deal.  You have to figure out who it is."  If you are working with an intermediary agent and buying a house, then the sucker is you. 





Previous Entry
What is an Intermediary Agent?

12/19/2007
An Intermediary Agent is a bad idea. It is an agent that represents both the seller and the buyer in the same transaction. See any conflicts?
   
Next Entry
Beware of Home Inspectors

1/4/2008
You think a home inspector is there to find existing or potential problems in the house so that you can decide if you should or shouldn't buy. You could not be more wrong.
All entries
4/16/2008 - What To Expect in a Deposition
2/27/2008 - Subdivision Drainage
2/20/2008 - Why Termite Inspectors Can't Find Termites
1/23/2008 - Why a Home Inspection is Not What You Think it Is
1/17/2008 - Trusting Your Home Inspector
1/16/2008 - Home Inpectors Respond to My Criticism
1/16/2008 - How To Pick a Home Inspector
1/4/2008 - Beware of Home Inspectors
12/26/2007 - Intermediary Agent Scam
12/19/2007 - What is an Intermediary Agent?
12/12/2007 - Ask Your Neighbor
12/5/2007 - IF A DEFECT WAS REPAIRED, DO YOU HAVE TO DISCLOSE IT?
11/28/2007 - Does Seller Have To Disclose Old Defects & Conditions?
11/21/2007 - When Real Estate Disclosures NOT Required
10/29/2007 - The TRCC aka "The Builders Defense Program"
10/22/2007 - The Texas Residential Construction Commission
9/26/2007 - House Foundation Settlement
9/19/2007 - Homeowners for Better Building (HOBB) is another national organization to assist you when you have a new home construction defect.
9/18/2007 - Builder Fails to Attend SIRP Inspection
9/13/2007 - Homeowners Against Deficient Dwellings (HADD) is a Resource When your New Home Has a Construction Defect
9/2/2007 - Water damage and termites in our homes.
8/22/2007 - Construction Defects and Water Damage
8/19/2007 - The Importance of Keeping Good Records When Things Don't Go Right
8/16/2007 - Construction Defects and the Mortgage Subprime Market Hurts All of Us
8/15/2007 - Being a Witness in a Construction Defects Case
8/13/2007 - BAD BUILDERS IN WASHINGTON STATE
8/13/2007 - Free Speech
7/19/2007 - Texas Residential Construction Commission Is Bad for Texans
7/3/2007 - Lennar Homes is the Biggest Not Because They are Good
6/5/2007 - Is ReMax Really Behind Your Agent?
Evin G. Dugas - Attorney at Law 512.261.0044 Evin@housedefects.com
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