26 April Can an unrepresented buyer purchase a residence in default for himself or for a family member? April 26, 2017 By Cindy Sellers Distressed Properties 0 It depends. If the unrepresented buyer is acting as a foreclosure consultant, he is prohibited from acquiring an interest in a residence in default from a homeowner with whom the foreclosure consultant has contracted either for himself or for a family member. [§7-307(8)] If the unrepresented buyer is not acting as a foreclosure consultant, then he may, provided he gives the homeowner the required 5-day right of contract rescission, and does not represent directly or indirectly that: The purchaser is acting as an advisor or a consultant, or in any other manner represent that the purchaser is acting on behalf of the homeowner; The purchaser has certification or licensure that the purchaser does not have; The purchaser is assisting the homeowner to “save the house” or use a substantially similar phrase; or The purchaser is assisting the homeowner in preventing a foreclosure if the result of the transaction is that the homeowner will no longer own the property. [§7-312(1)] Additionally, the purchaser may not make any other statements, directly or by implication, or engage in any other conduct that is false, deceptive, or misleading, or that has the likelihood to cause confusion or misunderstanding, including statements regarding the value of the residence in default, the amount of proceeds the homeowner will receive after a sale or transfer, any contract term, or the homeowner’s rights or obligations incident to or arising out of the sale or transfer. [§7-312(3)] Related Posts Once the buyer/tenant signs the buyer/tenant broker agreement, must I give the buyer/tenant the Understanding Whom Real Estate Agents Represent form so that the buyer/tenant can acknowledge that I represent the buyer/tenant? Once the buyer/tenant signs the buyer/tenant broker agreement, must I give the buyer/tenant the Understanding Whom Real Estate Agents Represent form so that the buyer/tenant can acknowledge that I represent the buyer/tenant? Q: Once the buyer/tenant signs the buyer/tenant broker agreement, must I give the buyer/tenant the Understanding Whom Real Estate Agents Represent form so that the buyer/tenant can acknowledge that I represent the buyer/tenant? Agency I have a buyer-client who wants to purchase a property that is “for sale by the owner” (FSBO). I have a buyer-client who wants to purchase a property that is “for sale by the owner” (FSBO). What do I have to do to comply with PHiFA? A buyer is purchasing property from an unrepresented FSBO seller who is either in default or in foreclosure and the seller needs to do a lease-back for a couple of days. A buyer is purchasing property from an unrepresented FSBO seller who is either in default or in foreclosure and the seller needs to do a lease-back for a couple of days. What do I need to know? What must I disclose if the first contact between a buyer’s agent and an unrepresented seller/lessor is not a face-to-face? What must I disclose if the first contact between a buyer’s agent and an unrepresented seller/lessor is not a face-to-face? What must I disclose if the first contact between a seller’s agent or subagent and an unrepresented buyer/lessee is not face-to-face? What must I disclose if the first contact between a seller’s agent or subagent and an unrepresented buyer/lessee is not face-to-face? Comments are closed.