Lack of full disclosure?

This evening, I was once again browsing the local real estate listings when I came across a number of short sale listings (more on that and how it relates to IndyMac at a later time) as well as this lake access lot listing. What I find interesting here is that the property owner's last name is listed as the same last name of the listing agent, yet the listing fails to disclose that this property is owned by a licensed real estate agent as is generally done in such cases. A further search of the Maryland Land Records database reveals that agent and owner are the same. Unless the database is out of date, something appears to be amiss. I'm no expert here but to me this looks like it could be a violation of Article 4 of the REALTORS Code of Ethics unless the seller was waiting to spring this news on the buyer at the last minute. I dunno, maybe given that the same agent has at least one other agent-owned property for sale at the current time maybe he feels like he has something to hide? Or maybe he's seen what I've previously written about how the number of agent-owned properties for sale should raise some red flags for potential buyers? The lack of upfront disclosure does raise some questions though.

We all know times are tough and agents are liquidating some of their real estate holdings to stay afloat but I certainly hope everyone is playing by the rules. I should also add that comparing the purchase price from the deed to the listing price also shows that this speculative foray didn't turn out to be a very good investment either. Even if the seller receives a full price offer in this case the difference between that price and the purchase price will not cover the collective sum of property taxes, over a year of interest payments, community association fees, loan origination fees, transfer taxes and any commissions due to the broker. Buyer beware when real estate agents tell you what a great investment lakefront/access property is while they are selling at a loss themselves.

Can someone please explain to me why the agents are telling us it's a good time to buy while they are trying to dump their own properties? I can find literally dozens of agent-owned properties for sale right now, but if these are such good investments shouldn't they want to hold onto them? I have investments too and I certainly don't want to sell the good ones that are earning good returns and paying solid dividends over time -- unless of course something is very wrong and I feel like I'm not going to earn a good return -- then I might want to sell.

Update, 8/21/08: Listing has been updated to add disclosure that property is owned by MD licensed real estate agent and this blog continues to inform and protect potential buyers from undisclosed or bad information.

Don't forget to check back to Dan's Deep Creek Blog for future updates.