Legal Question in Real Estate Law in California

My Mother recently died and I was named trustee. My brother told one of the neighbors we are selling the house and now that neighbor is interested in buying the house. After the mortgage is paid off and some other bills she had there will only be about $40,000 left. I have had my real estate licence for about a year and my questions are:

1. Can I be the agent for my self as the successor Trustee (seller) and the agent for the buyer?

2. Can I just tell my broker I am not going to take a commission, then after escrow closes take my fee from the trust so I won�t be taxed for income?

I have 2 brothers and in the trust agreement it�s says we share money equally.


Asked on 8/08/13, 12:47 am

2 Answers from Attorneys

Anthony Roach Law Office of Anthony A. Roach

If you only have real estate agent's license, then you need a supervising broker for all activities for which a license is required. You cannot simply go out and act as rogue agent and act without your broker's permission.

I seriously doubt your broker would approve of your attempt to moonlight, or to make the decision that he or she was not going to get a commission.

Read more
Answered on 8/08/13, 10:10 am
William Christian Rodi Pollock

Wow. What a huge conflict of interest. I would not reccomend engaging yourself unless your brothers specfically agree and waive their rights. egardless of whether you help, as a fiduciary you are required to expose the property to the market to assure you obtain the highest and best price. In todays market, simply acceptig a price from the neighbor is not adaquate exposure. The property should be placed on the multiple listing service and offers solicited after proper exposure. If the neighbor offers the best price, that's fine. As a trustee your fiduciary obligations demand that you do this right.

By th eway, if you take a fee from the trust you WILL be subject to income tax on the fee. This is true whether it is a brokers fee or a trustees fee. This gratuitous response does not create an attorney client relationship. The advice provided herein is generic, may not apply to your circumstances and is not to be relied upon in your actions. An attorney client relationship is created only upon execution of an engagement letter hiring me or my firm.

Read more
Answered on 8/08/13, 11:03 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California