[quote=jmpman]I see no difference between a lending institution and an individual when it comes to the realtor’s ethical obligation.[/quote]
Correct.
The difference is who the client is.
While we have different duties, our fiduciary relationship is somewhat similar to that between a lawyer and their client. If I have an explicit relationship with a bank, then I will represent their interests vexatiously. This is part of the reason, I don’t like to “double end” deals. Representing both sides splits loyalties. Extra money is no compensation for having clients who think you are cheating them.
Similarly, the bank has to give approval but is very much not my client. They don’t pay me and they can’t fire me. Generally, larger offers are irrelevant if the seller has already accepted one. I will always disclose that to the seller but the seller makes the final call on sending them to the lender. The lender usually has a number they want to see on the contract and they will insist before accepting the short sale. I have even mentioned higher offers and had the bank’s rep say that he was not interested in offers that had not yet been approved by the investment committee. I think for them, as long as they get the ends they want, the uncertainty of a new offer is more costly than a known, approved quantity. I think this is due to the volume of these happening every day.
Again this is my opinion based on lots of experience.
