Conflict Of Itntrest?
A partner and I was wondering if there would a be a conflict of intrest if I were to be a real estate agent, he becomes an a Appraiser, and another partner to be a Nortary, all under the same LLC.
The plan is to have our Nortary to sign the deed on the spot. List the property for the bakes sake, and have an appraisle done for the final closing??? All input is good and very appreciated..
Dan
There is not a problem having an employee as a notary. Banks do it all the time. You do not want the notary to be a principle in the transaction nor related to a principle in the transaction. I have often thought about what if the employee works on commission? My employee gets a $350 bonus for every house that I sell. So what if she was the notary on the deed? I do not know the answer.
"List the property for the bakes sake, and have an appraisle done for the final closing???"
What does the above mean? The bank will contact their own appraiser. The seller does not get to pick the appraiser.
I had one deal where I had purchased the house for 20k just 6 months prior. It was a burn out so there was a ton of rehab. The house appraised at 110k and was worth every penny. But the sellers lender called for a second appraisal because they did not like the fact that my partner - who was on title with me - was the realtor and the mortgage broker. I lost my share of 10k because the lender over scrutinized the numbers because my partner had too many fingers in the pie.
Brenda, for a different reason I had a similar experience.
I was in the process of selling a foreclosure house to an employee, giving him one hell of a good price. Because of our close relationship the lender had a second appraisal done and double-checked his paycheck stubs against his tax return.
I would say we need to avoid any appearance of a conflict of interest.
[addsig]