Broker with ownership interest

Prospect heights may be neat park slope but that doesn't make it park slope. Way over priced.

Posted by: ownhs at February 27, 2008 10:48 PM in response to 2BR/2BA PreWar PH Condo For Sale

ysabelle, every corporation has a ceo. it's not pretentious.

Posted by: ownhs at February 27, 2008 10:50 PM in response to construction company for all your needs

Most large pieces of wood furniture have metal or plastic protectors on the bottom (like large thumb tacks). Remove these, add as many washers to the low end legs as needed to even them out, then put the feet back on. That is a little less noticeable than matchbooks etc.

Posted by: ownhs at February 28, 2008 9:49 AM in response to Leveling furniture on sloping floors

Read carefully 12:11. It's not MY broker. It's the sellers' broker and the lawyer is an idiot who people on brownstoner highly endorse. Next comment please.

Posted by: ownhs at February 28, 2008 12:17 PM in response to Broker with ownership interest

Thanks all for the comments. I've spoken with another lawyer who says something very similar: they do the contracts (including title/lien searches) and closing. They don't tend to get involved in the offer negotiations.

The additional investigation I was looking for involved the multi-family status, the violations with various city agencies, the cost of getting c of o and converting to 1-2 family, etc. Architects say this is the lawyers job and lawyers say it's the architects and both end up paying an expediter. I don't want to deal with the city bureaucracy either if I can avoid it, but it seems the only people who do are the ones in the mix who didn't get an advanced degree.

Posted by: ownhs at February 28, 2008 4:06 PM in response to Broker with ownership interest

Hold your head at an angle and everything will look normal

Posted by: guest at February 28, 2008 10:20 AM in response to Leveling furniture on sloping floors

First, I would directly reveal to the broker that you know they/relative own the property. All brokers know that people do their research nowadays, and one look at Property Shark or ACRIS can give you all the information you need. Let them know you're knowledgeable about this property, and you don't understand why they're not answering your questions. I don't know if they are under legal obligation to reveal they are the owners.

Second, a lawyer has nothing to do with the negotiation part of it, but they ARE SUPPOSED to do all the due diligence research in the contract phase, BEFORE YOU SIGN THE CONTRACT, which includes title search, financial issues with the property, liens, etc., etc. You sign the contract once all that research has been satisfied and no red flags have been detected BY THE LAWYER. That's what you pay them for.

Third, a buyer's broker doesn't guarantee you any protection, at all. A buyer's broker is only in it to get a cut of the commission, if the seller broker even practices shared commission. Many do not, and in that case no broker would bother to act as your buyer's broker. Also remember that having a buyer's broker could work against you if there are many competing offers, as your offer would mean less commission for the seller's broker.

Good luck.

Posted by: guest at February 28, 2008 1:09 PM in response to Broker with ownership interest

Find a different lawyer.

Posted by: guest at February 28, 2008 1:11 PM in response to Broker with ownership interest

This is very odd. Over here in the UK, the Realtor negotiates the price for you, but your solicitor will do everything else: local authority searches, environmental searches, and everything else that falls into your "researching property, interpreting city records".
Overall, you have a right to know, and a real good lawyer will know how to find out. You will always know if you're using a good lawyer, because their work will be worth every penny you are paying.
A bad one is one who will leave wondering what exactly you have paid for after you signed the check.

Posted by: guest at February 28, 2008 1:31 PM in response to Broker with ownership interest

Would that be a certain realtor with an office, oh, say, directly across from PS321 on 7th Ave? Before you decide what to do, ask yourself how much you want the place. If you really, really want it, then proceed with caution and don't rock the boat too much. If you are OK with losing it, I would confront the broker with what you know and ask them directly what their ownership interest is, why it was not disclosed, why they haven't answered your questions, and whether there is some sort of tax scam going on. That will give them something to think about, but they might decide you are a hassle, and sell to someone else.

I bought a house in Park Slope, which I was led to believe was owned by the realtor's sister. At closing, however, I ended up writing a significant check to the realtor herself, presumably because she had some undisclosed interest in it. (These people owned several houses on my block.) While I was surprised and not exactly pleased, the house we ended up buying was no different than the house we looked at and bid on, and the IRS has not called to interview us on the transaction. Basically, what difference does it make, as long as you are not party to some type of fraud, tax or otherwise? The house is the house, the price is the price. Of course, you will still need all the relevant information in making your decision, but that's true of any house. You may want to use a different lawyer though.....

Posted by: guest at February 28, 2008 1:58 PM in response to Broker with ownership interest

Definitely hire another lawyer.

Basic legal work includes due diligence on the property - this means researching title, ownership, any liens against the property, etc. You cannot go to contract regarding purchase of a property with a person who does not own that property, after all!

It is also completely normal and standard for your lawyer to represent you in negotiations with the seller and their lawyer and broker.

Bottom line: your lawyer is not doing what lawyers are paid to do and should not be representing you.

Posted by: Jen KG at February 28, 2008 2:46 PM in response to Broker with ownership interest

Why do you care who the owner(s) are? The real question is whether the broker has knowledge of actual defects in the house that are not being disclosed --if the broker owns the property, disclaiming knowledge of defects is likely fraudulent.

As for the lawyer -- if you like the attorney, you should ask him who is supposed to do these acts. By regulation, the attorney should have sent you a written retainer letter spelling out exactly what services were intended to be provided. If it is a general retainer (like all services necessary in connection with the purchase of property X), then Jen KG is right that the lawyer should be handling the due diligence (at least in the sense of supervising the title search) and the negotitions over the contract for sale.

Posted by: guest at February 28, 2008 3:07 PM in response to Broker with ownership interest

"you're lawyer's an idiot."

hilarious.

Posted by: guest at February 28, 2008 3:48 PM in response to Broker with ownership interest

Just to respond to 3:07, it really is necessary to be fully certain of the identity of the property owner before going to contract, as you don't want to give a down payment to someone who does not have the power to give you the property. It could be very, very difficult to get that money back.

Also, I believe that NY law has an rule which allows owners to give a $500 discount on the property and not discuss existing hazards or problems. HOWEVER, I am not a real estate attorney and do not know if this law says that knowledge of defects can be (falsely) denied OR if it is just that known defects need not be affirmatively mentioned. A good, experienced real estate attorney should be able to explain this to you as well.

Posted by: Jen KG at February 28, 2008 4:04 PM in response to Broker with ownership interest

Thanks all for the comments. I've spoken with another lawyer who says something very similar: they do the contracts (including title/lien searches) and closing. They don't tend to get involved in the offer negotiations.

The additional investigation I was looking for involved the multi-family status, the violations with various city agencies, the cost of getting c of o and converting to 1-2 family, etc. Architects say this is the lawyers job and lawyers say it's the architects and both end up paying an expediter. I don't want to deal with the city bureaucracy either if I can avoid it, but it seems the only people who do are the ones in the mix who didn't get an advanced degree.

Posted by: ownhs at February 28, 2008 4:06 PM in response to Broker with ownership interest