Repair to a REO listing agent has home repair business also

**incognito** · 09-30-2011, 06:28 AM

help me anybody please i am trying to purchase a REO and finally aggred with each other that there would be repairs made that i incresed the price up to 1500 from asking price then the listing agent that has a home repair business went in and did some repairs and charged me 1575 about 170 in material and the rest in labor i didnt look at the place until after i paid for a servey and showed in the picutres more damage where the repairs were made so i went and did a walk through and it looked terriable what he did was squeak by for my FHA approval on the servey i got My question is the listing agent allowed to do repairs on the home or have a business that did the repairs??? i asked if i could do the repairs and they said it has to be a general contractor

**John Woodward** · 10-01-2011, 01:45 AM

There are no laws keeping a REALTOR from having a home repair business. There are also there are no laws to keep a home inspector or an appraiser from having a home improvement business either. That being said, the home inspectors I use won't even recommend a repair company because of the perception of a possible conflict of interest (kick backs, referals etc). To do so might give a perception of some dirty dealing. I would think this to be an "unconcienable" act on the part of the REALTOR. It is clearly a conflict to have the REALTOR's home improvement company get involved...it's especially bad because the contracts I see state any repairs have to be "professional" and in a "workman like mannor." If you weren't this far into the deal I would say run, don't walk from it. I think you would have a lot of leverage at this point to have someone on the sellers side go and hire an independent home repair company go out and fix it right. As a broker, I would probably insist the agent get out of the repair business for transactions they are involved in or find some place else to work. There is just too much liability to do other wise.

**Greg** · 10-01-2011, 05:01 AM

The REO company who hired the listing agent to do the repairs most likely would not be very comfortable with their agent doing this work. There is not much you can do about it except walk away and lose the money you spent.

If the agent is willing to risk breaking the rules of the company who hired him then he probably is willing to break other rules, like doing the repairs correctly.

**incognito** · 10-03-2011, 05:41 AM

just wanted to know because i may do so after the property becomes mine after the closing. he should not be abled to do this to anyone if i cant get my own aprasial i cant do the repairs my self and i have to play transparent then he should to thank fishy for all your knowledge it was very helpful and a put me on ease a little bit

Originally Posted by John Woodward

There are no laws keeping a REALTOR from having a home repair business. There are also there are no laws to keep a home inspector or an appraiser from having a home improvement business either. That being said, the home inspectors I use won't even recommend a repair company because of the perception of a possible conflict of interest (kick backs, referals etc). To do so might give a perception of some dirty dealing. I would think this to be an "unconcienable" act on the part of the REALTOR. It is clearly a conflict to have the REALTOR's home improvement company get involved...it's especially bad because the contracts I see state any repairs have to be "professional" and in a "workman like mannor." If you weren't this far into the deal I would say run, don't walk from it. I think you would have a lot of leverage at this point to have someone on the sellers side go and hire an independent home repair company go out and fix it right. As a broker, I would probably insist the agent get out of the repair business for transactions they are involved in or find some place else to work. There is just too much liability to do other wise.