Here is a 1999 NAR article and the case law that illustrates the high risk for an associated licensee or BIC to buy a brokerage listing…or for associated licensee or BIC to sell to a brokerage buyer client….or engage in leasing with similar parties.
To proceed, you need lawyer drafted formal agreements for self-dealing that discloses the self-dealing and allows the client to escape paying compensation and handles the change to the agency relationship.
Avoiding these transactions can avoid the risks.
Elements of these issues can apply to brokerage marketing campaigns to "sell your house, or buy it" so be careful.
If accepting the risks for these transactions, consider giving money to the client in order to hire an independent broker, appraiser, lawyer, surveyor, inspectors, engineers to qualify the price and property.
https://caselaw.findlaw.com/sc-supreme-court/1442838.html
Posted by : Byron King on 10/24/18 (This information is only accurate as of 10/24/18. You must contact SCR for updates and changes to this information after 10/24/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)