Is there a conflict created by mortgage company, REALTOR® and attorney all under one roof?
Real estate firms have been partners with mortgage companies for more than 20 years, but Realtors have started to open their own mortgage companies as a way of broadening services and diversifying their bottom line. As long as the buyer is free to go elsewhere for such services and mortgage protections are in place, this service is legal. Some feel that although it is legal, it creates a conflict of interest. Other weigh in that the new mortgage laws enacted protect consumers against mortgage fraud. There was a good article about it in the New York Times. If you find that there is a specific problem in a transaction, ask your broker to call the MAR legal hotline to find out what to do about it. 1-800-370-LEGAL (5342) The dates on Purchase and Sales agreements need to be looked at more closely as some contracts are being presented with closing date before mortgage contingency date. A real estate agent must be vigilant about contractual obligations, timelines and terms when representing
