Short Sale Practices Under Investigation
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RENO, Nev. (AP) — A Nevada agency will review practices in the real estate industry following an investigation by a Reno newspaper that showed dual-agency short sales involving a prearranged cash buyer accounted for more than 10 percent of home sales last year.
Such transactions are when the same real estate agent or entity represents both the buyer and seller and collects commissions from both.
An investigation by the Reno Gazette-Journal found that many of the properties were sold below market value, allowing investors to see a larger appreciation when the properties were resold.
Nevada Department of Business and Industry Director Bruce Breslow tells the Gazette-Journal that his agency will look into the practice to see if real estate firms are taking advantage of distressed homeowners for their own gain.
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