Whether commercial or residential, many of the properties on the market today are short sales. Many times, the owner will look to the real estate agent to provide comparable sales in the area, as well as negotiate with the bank to help work out the sale. Many real estate agents are very knowledgeable as to comparable sales in the area and can provide convincing arguments to a bank to accept less than the full amount owed on the promissory note.
With the increased amount of foreclosures, this practice is receiving scrutiny by the Florida Bar. The actions described above could be considered the unlicensed practice of law in the agent’s efforts to help homeowners. There is no case on point that has made a ruling on this matter, but a public forum is being held on February 11, 2011 in Orlando to discuss this issue. Based on the testimony heard by the Florida Bar, the Supreme Court will make an advisory opinion with regard to this topic.
Stay tuned to this blog for more information regarding short sales and the unlicensed practice of law.