TIC Problem

[rolandlaw]

My wife and I bought a house under a Tenant in Common (TIC) arrangement with another couple about a year ago. They are both licensed realtors and brokers. She also acted as our real estate agent when buying the house. In the contract, she disclosed she would use her commission to pay part of the down payment. On top of that, this couple knows the former owner of the house very well before we buy the house.

Now, our relationship has gone south, and both parties decide to sell the house. She wrote to us saying that we can either use her as the listing agent, or we have to pay all the fees and commissions from our share of proceed if we use another agent.

My questions are:

1. When we bought the house, did they commit any fault by using the commission she got from acting as the buyer’s agent to pay for the down payment of the same house?

2. Since she knew the former owner and understood that the higher the sale price, the higher commission she would get. Was it ethical?

2. Currently, we are going to sell the house. Does she have any conflict of interest by forcing us to use her as the listing agent while she is also a co-owner of the house?

[HomeGuru]

Originally Posted by rolandlaw

My wife and I bought a house under a Tenant in Common (TIC) arrangement with another couple about a year ago. They are both licensed realtors and brokers. She also acted as our real estate agent when buying the house. In the contract, she disclosed she would use her commission to pay part of the down payment. On top of that, this couple knows the former owner of the house very well before we buy the house.

Now, our relationship has gone south, and both parties decide to sell the house. She wrote to us saying that we can either use her as the listing agent, or we have to pay all the fees and commissions from our share of proceed if we use another agent.

My questions are:

1. When we bought the house, did they commit any fault by using the commission she got from acting as the buyer’s agent to pay for the down payment of the same house?

**A: no
*********
2. Since she knew the former owner and understood that the higher the sale price, the higher commission she would get. Was it ethical?

**A: no
******

2. Currently, we are going to sell the house. Does she have any conflict of interest by forcing us to use her as the listing agent while she is also a co-owner of the house?

**A: yes it appears so but is not unlawful.