Hi guys
I’ve come to an agreement to purchase this park http://www.loopnet.com/Listing/19874834/305-Geneva-Circle-Spartanburg-SC/
I had approached the listing broker directly, but the only thing the seller doesn’t agree on is the dual agency broker.
Does it make sense to get one now? Do you have one in the area you recommend? Or should I just find one that does MHPs in the area?
I don’t understand your question. What’s the problem with this deal - that two brokers are not involved? Does the listing broker actually have a signed listing agreement with the seller?
I’m not in that area so I can’t recommend any brokers, but I do think it is a good idea to submit your offer with a separate listing broker so everyone is represented without the potential for a conflict of interest. Shouldn’t be too hard to find a broker seeing as you already have the deal in place (and all they have to do is broker the deal in place).
Yes. The listing broker has an agreement with the seller. I made my offer through that broker, but the seller doesn’t want them representing both of us.
I’ve never purchased a park and don’t think I should do it alone.
You need a good real estate attorney but why you would need a broker sucking out another part of the commission is beyond me. This isn’t rocket science and believe me - brokers ain’t scientists. Listing agents usually PREFER there are no other brokers involved so that commissions don’t get split up, leaving you a little more negotiation room on the price because the listing agent has some space to negotiate down their commission with the seller.
You need your own broker for - what, exactly??? Your broker doesn’t exist to serve your interest, dude. Your broker has only one interest - getting a deal done. Otherwise they don’t get paid.
On the other hand your ATTORNEY, if knowledgeable in real estate, gets paid by the hour and can be a neutral consultant in your corner.
If it doesn’t impact the buyer’s purchase then why does it matter? Do what the seller wants if you want to close the deal or move on to a seller who is easier to work with.
If the Buyer is not represented by anyone then the Seller’s broker get the full commission (e.g. 6%). There is nothing to forego getting a broker involved.
Worst case scenario I would contact Joanne Stevens so you can get some goodwill and perhaps future leads. She is a broker specializing in MHP’s so at least understands the business better than most brokers. Frank did a podcast with her here: An Interview With Joanne Stevens, A Mobile Home Park Broker - Mobile Home University
I don’t know which states she is licensed so you may need to make sure SC is covered.
Good luck and hope DD goes well for you.
@bhennen123, as per your question:
I am a South Carolina Real Estate Broker-In-Charge.
It is perfectly understandable that the Seller does not want their Listing Agent representing both the Seller and the Buyer (“Dual Agency”).
In South Carolina a “Dual Agent” is not the same as having your own exclusive agent.
As per the South Carolina Department of Labor, Licensing and Regulation documentation concerning Agency Relationships In Real Estate:
“Also, a dual agent may not be the advocate for either party and cannot negotiate for nor advise either as to price or terms.”
Personally, I do not do “Dual Agent”.
My Husband is my biggest Client and if a Buyer or Seller (depending on the transaction) comes directly to me I will not represent both parties.
Since at Closing the Seller is paying the Commission for both sides, it would be advantageous for you to enlist a Buyer’s Agent that has closed Mobile Home Parks and is knowledgeable in the area of MHPs.
In South Carolina an Attorney is used to “Close” (Complete) the Real Estate Transaction. There are specific Attorney Fees for the Buyer and specific Attorney Fees for the Seller.
The Buyer selects the Closing Attorney. The Seller can use the same Closing Attorney or another Closing Attorney. If the Seller uses a different Closing Attorney, their Attorney Fees are more expensive than using the same Closing Attorney.
I agree with jhutson…call Joanne Stevens. She is an expert on mobile home parks and knows the transaction side inside and out. I’ve worked with Joanne several times and personally recommend her. Good luck!
So, Im not sure why they made a thing of this, but they ended up having someone else in the office handle my side of the transaction. Thanks everyone
I’m sure they’ll never discuss details with the listing agent lol
@bhennen123, as per your post:
I am a South Carolina Real Estate Broker-In-Charge.
As a Buyer or Seller it is VERY IMPORTANT to understand what type of “Agency Relationship” your South Carolina Real Estate Agent is providing you.
There are numerous “Agency Relationships” that a SC Real Estate Agent can provide.
These numerous “Agency Relationships” have various duties and various services.
In fact yesterday afternoon I just attended a 2 hour course on the new changes to the South Carolina License Law in 2017.
Currently, as per the South Carolina Department of Labor, Licensing and Regulation & the South Carolina Real Estate Commission documentation called “Agency Disclosure Brochure”:
“Dual Agency”:
“Dual Agency exists when the real estate Company has two clients in one transaction - a seller client and a buyer client.”
“At the time you sign an agency agreement, you may be asked to acknowledge whether you would consider giving written consent allowing the Company to represent both you and the other client in a disclosed dual agency relationship.”
“Disclosed Dual Agency”:
“In a disclosed dual agency, the Company’s representation duties are limited because a buyer and seller have recognized conflicts of interest. Both clients’ interests are represented by the Company. As a disclosed dual agent, the Company and its associated licensees cannot advocate on behalf of one client over the other, and cannot disclose confidential client information concerning the price negotiations, terms, or factors motivating the buyer/client to buy or the seller/client to sell.”
“Designated Agency”:
“In designated agency, a broker-in-charge may designate individual associated licensees to act solely on behalf of each client. Designated agents are not limited by the Company’s agency relationship with the other client, but instead have a duty to promote the best interest of their clients, including negotiating a price.”
“The broker-in-charge remains a disclosed dual agent for both clients, and ensures the assigned agents fulfill their duties to their respective clients.”
For anyone considering purchasing Real Estate in South Carolina please become familiar with the different types of “Agency Relationships” and what duties and services those “Agency Relationships” provide.
My agent will be acting as Designated Agency. 
I also just found out from my new designated agent, the 2 house on the bottom right corner are on the same water line, even though not part of the park. The original owner sold off the lot with 2 homes and never took care of separating the water. They have an agreement to pay $50/month for their usage.
I’m always amazed at what some people do.
Anyway, now I have to figure out what to do. My first thought was to buy back the land, and lease the spaces to the current owner. I already plan to submeter water. I’d add 2 more meters and gain 2 lots.
Or I could make them get their own water lines run.
I don’t want to continue with the same set up now
How have others dealt with this type of issue?
I have seen this. I had to basically get together an agreement that those people sign to provide them water service, and that they agreed to pay based on submetering + management fee allowable by the state. Also if there was a line break on their property (assuming which is where you would place the submeter at the property line) then they are responsible for the repair and also working with city for reimbursement if there is a grievance process - be careful here because it might be you that has to file the grievance.
Cutting the cord and having them get their own line run is a better long term solution, but unfortunately you will need to work that with an attorney on how to have that transition happen without disconnecting their service and creating problems.
@bhennen123, as per your post:
That is wonderful that you are aware of the type of Agency which will be provided to you and that you agree to this Agency.
It is very important for every Buyer and Seller to under the type of Agency which will provided to them (as the types are different).
We wish you the very best!