There are several bad business practices available to real estate professionals that are difficult to spot by sellers and buyers in the marketplace. Here are the worst of them. Most real estate professionals don’t engage in these but some do. Always insist your representative disclose all sources of compensation in the deal.
This occurs when a single brokerage serves both the buyer and seller in the same transaction. No one can serve two masters. It doesn’t have to be the same agent serving both the seller and the buyer. It’s the broker that collects two commissions and will do whatever is needed to close the deal in-house. Avoid this at all costs.
Collusion between escrow services and brokerages
Competition between both title and escrow services is how you obtain the best service and price. When a broker refers all buyers to the same escrow or title serving company the competition is lost. As a buyer, you want to shop around and find reliable references for these services.
Attorneys selling title insurance
When an attorney represents both the buyer and the title underwriting insurance company, they cannot negotiate title coverage. When they do, they receive a very …read more