In what cases have you seen undisclosed principals? Do you run across it much? Has it caused transactions to be awkward because one of the principals was undisclosed?

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Ivan Carroll, Studying to become an agent (Me)

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Rainmaker
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Karen Fiddler, Broker/Owner

Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA

Orange County & Lake Arrowhead, CA (949)510-2395

I find it can be common with investors to not disclose the principals. I have also done it myself when I purchased an vacant lot next to my cabin....didn't want them to realize who I was and how badly I wanted it.

Aug 01, 2015 09:58 AM

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Inna Ivchenko

Encino, CA

Rainmaker
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Barbara Todaro

RE/MAX Executive Realty - Happily Retired - Franklin, MA

Previously Affiliated with The Todaro Team

actually, I've never had this happen.... I know of other agents that have dealt with this....using a straw and assigning a purchase and sales agreement happens occasionally with land, if the developer has deep pockets and does not want to be know as the buyer....

Aug 01, 2015 08:32 AM

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Ambassador
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Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

Consult your state laws and an attorney about if & when a principal has to disclose.

Jul 30, 2019 09:33 PM

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Rainmaker
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The Woodland Team of Texas

The Woodland Companies - Austin, TX

Land Specialists

We have been the undisclosed principle.

Oct 13, 2018 06:46 AM

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Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

Very rare, but it worked for Jesse Pinkman

Feb 06, 2018 10:51 PM

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Rainmaker
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Inna Ivchenko

Barcode Properties - Encino, CA

Realtor® • GRI • HAFA • PSC • Short Sale • Probate

It can be done as Trust, LLC, etc. or as undisclosed principal ( see agency law), also principal can request to be removed from public records and online searches.

I do not feel awkward. Trust and LLC transactions are quite common these days.

Feb 18, 2017 07:59 PM

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Rainmaker
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Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

I rarely see this as it is against the law in TN. Our procedure is that agency has to be declared on a written form.

Dec 31, 2016 01:46 PM

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Rainer
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Ivan Carroll

Me - Ogden, UT

Studying to become an agent

Thanks everyone. It makes sense that an investor or someone who doesn't want the seller to see them as "deep-pocketed" or "desperate", for lack of better terms, would be interested in keeping their identity under wraps.

As a follow-up question, is there any point during the transaction when the party's identity gets disclosed or would no one know who they are until the purchase has closed and been recorded?

Aug 03, 2015 01:44 PM

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Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

I've had it a couple of times. Generally speaking it's never been awkward.

Aug 01, 2015 01:29 PM

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Rainmaker
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Martin E. Kalisker, Esq.

Natick, MA

Real Estate Law From A Practical Perspective

Not in our neck of the woods. All parties are disclosed in the transaction.

Aug 01, 2015 07:44 AM

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I find it can be common with investors to not disclose the principals. I have also done it myself when I purchased an vacant lot next to my cabin....didn't want them to realize who I was and how badly I wanted it.
actually, I've never had this happen.... I know of other agents that have dealt with this....using a straw and assigning a purchase and sales agreement happens occasionally with land, if the developer has deep pockets and does not want to be know as the buyer....
Consult your state laws and an attorney about if & when a principal has to disclose.
It can be done as Trust, LLC, etc. or as undisclosed principal ( see agency law), also principal can request to be removed from public records and online searches.

I do not feel awkward. Trust and LLC transactions are quite common these days.
I rarely see this as it is against the law in TN. Our procedure is that agency has to be declared on a written form.
Thanks everyone. It makes sense that an investor or someone who doesn't want the seller to see them as "deep-pocketed" or "desperate", for lack of better terms, would be interested in keeping their identity under wraps.

As a follow-up question, is there any point during the transaction when the party's identity gets disclosed or would no one know who they are until the purchase has closed and been recorded?
I've had it a couple of times. Generally speaking it's never been awkward.
Not in our neck of the woods. All parties are disclosed in the transaction.