Is It Legal To Market A Property If You Have An Option To Buy. Need Help From Pros.
I currently have an option to buy (Subject to Short Sale) on two properties. Before I get myself in trouble, I want to find out if it is legal to market my properties through the MLS or newspaper with just holding the option (No deed Recorded). I know I can find a buyer, I just want to play by the book.
I know this is scary, but I did ask my attorney and he could not give me an answer. Yikes!!!
I am not a Realtor or Broker.
Thank you in advance.
If it is done correctly, you should sign a listing an MLS listing agreement with a broker prior to getting your house listed on the MLS. The listing agreement is to be signed by the owner of the property. If the MLS board finds out that realtors are listing properties for clients who are not the owners of the property - the realtor and broker will get in trouble from the MLS board.
You can market any thing you want to in the newspaper, bandit signs, flyers, etc. Just fully disclose as an addendeum to the Purchase and Sales contract that you only hold an option on the property.
One thing to think about is if your retail buyer is getting a mortgage. Most conventional lenders will not lend on a Purchase and Sales contract that is not signed by the owner of record and most conventional lenders will not allow a large option or assignment fee on the HUD1.
bgrossnickle,
Thank you for your response. I found that to be very helpful.
Now I understand.
Thank you all for your time and your thoughts.
By having an option to buy you hold equitable title to the property, so you have an ownership interest. At least in IL you have the right to sell/market/transfer whatever interest you have in the property.
By having an option to buy you hold equitable title to the property, so you have an ownership interest. At least in IL you have the right to sell/market/transfer whatever interest you have in the property.
Thank you everyone. Normally, this is something a real estate attorney would know without breaking a sweat. Apparently, I need to look for a new attorney.
Thank you for everything
I have never used an Option to Buy but was always told to record it (as it sounds like you did). This way if the owner tries to sell to someone else, they will not have clear title. Take this property to investor meetings and spread the word. Email the property to all your investors you have dealt with. This is the best way to get the house sold. As someone stated before, trying to sell to an end user will be hard as many banks will not loan on an assignment.