Agency. It means something a little different in all fifty states. Here in the Kansas City real estate market we that have licenses in both Kansas and Missouri have to keep straight the differing rules and regulations regarding real estate agents and their various forms of agency.
This post isn’t about explaining the various forms of agency. Though that would be a great series of blogs. Nor is it to discuss the differences between Kansas and Missouri. Again, another series of blogs that may be worth pursuing. But this blog post is to point you towards a Kansas City Star article regading real estate agents with Block & Co (a commercial real estate brokerage here in Kansas City) that apparently failed to meet their fiduciary duty towards their seller clients.
Now, I’m not privy to all the facts. And I am of the belief that a jury would almost always rather side with a seller or buyer than an evil, rich real estate firm. But when a jury only deliberates for an hour that speaks to pretty strong evidence. Read the story. Then think about who you want to represent you in your next real estate transaction. Would you prefer a seasoned professional, a part-timer with little experience or even worse, yourself?
What amazes me is that commercial agents wouldn’t realize the seriousness of signing an agreement that says you would qualify buyers before allowing them to offer. I’m curious as to what kind of background/financial check they conducted.
(Editorial note: There are a very few of you out there that are/would be qualified to represent yourself. You need not comment unless you really feel compelled. But most people are better off using a professional real estate agent. Be that me or someone else.)
Trust me. At that price he was still making a profit and leaving someone else with headaches unimaginable. This is not a Kansas City problem. It happened (still happens) all over the country. Heck, I still get calls today asking me to participate in this stuff. 
Not to brag, but I’ve only had to testify one time during my real estate career. It was back in 2004 and it was for an investment client I represented on the sell side. He was an out-of-stater. I’m not going to go into the details, but when his attorney called me to the stand I had written notes and photos of the issues in question and documentation that the buyer was fully aware. Slam dunk. Buyer loses and gets to pay all the costs of his attorney and the court. 
Some of you have tons of equity tied up in under-performing properties. And perhaps you are approaching a time of your life when you’d like to make your “passive income” really passive. By selling those 5 fourplexes in Olathe you can take the equity and 1031 tax defer it into a TIC. The TIC would likely be a share of a warehouse or shopping center or oil and gas leases. Or what if you identified a TIC as one of your three options. An emergency back-up, if you will, in case the other two income properties don’t work out. But you won’t hear too much about Tenants In Common until real estate agents start getting paid to tell you about them. 
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