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is it legal for a real estate broker to be investor on a property they are marketing?

im buying a home with my local real estate office which is a branch of a national chain .after i was in contract i discovered that the owner of the branch is an investor in the development .is this legal

Public Comments

1. Very legal.......marginally unethical. What crime did he commit??
2. On it sites are good top links for decisions of your problem http://topfin5.notlong.com/8AAr00K
3. They should disclosure their dual-agency status to you. If not, that would be an ethical violation. I would back out of the deal.
4. yes it's legal
5. Yes it's legal but it should have been disclosed to you.
6. Depends on how you found out. If you were not informed before considering a property, then this is illegal, it's a conflict of interest. If however you were informed prior to your consideration, then no it is not illegal. The key here is when it was DISCLOSED to you the buyer. It's not uncommon for Realtors to own real estate as investments. They do however have to make everyone aware that they are the owner and a realtor. Anyone can own real estate for legal purposes.
7. Is the owner of the branch your Realtor? If not this is marginally a disclosure issue. Realtors have to disclose if they are owner agents, related to a buyer or seller of a property, or invested in a property/development. But if the Realtor you are working with is not invested in the development they do not really have to disclose that their "boss" is.