Is it legal for a real estate company to buy a listing turn around and sell the listing for profit or malipulate the sale price?

A real estate company Im aware of buys homes that are undervalued or foreclosed
on and resales them at a tremendous profit. Also when a foreclosed home comes on
the market from a lender at a specific price this company dictates the price in
which to sell these homes. For instance this company has a listing for a house
for 50,000 , I sign a contract for 50,000 they won’t except it because they have
a contract on it themselves or they except higher offers to get better
commissions. Is this legal?

Asked on March 6, 2017 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

1) A real estate company is allowed to purchase homes itself; it can buy, sell, trade, etc. them "for its own account" (to borrow language from the securities industry) and is not limited to only acting as an agent for others.
2) If they own the home (i.e. they bought it), they have the right to decide which offers to accept and why, the same as any homeowner or other property owner can decide which offers to accept and why.


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