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Good Negotiating vs Lie by Omission


The next point, is the seller simply a good disclosure, a good negotiator rather. That goes back to the Johnson vs Davis and some of the other ethical cannon and some of the other things we've discussed. I have no problem with a seller who is a good negotiator, But I think omission by lying.

So not telling the bank I've got this $100,000 liquid asset sitting over here It's that kind of stuff that gets people into trouble, it's that kind of those kinds of lie by omission that create instances where as agents, as sellers, as buyers, as title companies as attorney's we're inviting liability on ourselves. by lying by omission. Now again, being a good negotiator, so if the bank property back in REO and you're simply negotiating with the bank on price that's good negotiating, but if you're doing a short sale or a short sale flip, knowing that there's a buyer your buyer is the strawman, and there's another buyer that's willing to pay $50,000 more for the property once your straw buyer takes title, I think that crosses the line to fraud and misrepresentation because you're intentionally leaving that fact out and not disclosing it to the bank. And I think that's were we draw the line.

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