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What is a collateral agreement in real estate?
When one agent represents both a Buyer and a Seller (referred to as “double-ending a sale”), they stand to make twice as much commission, so discounts are often offered to the Seller. It's called a collateral agreement, is completely legal and this agent did properly disclose it.
What collateral means?
The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender.
What is a collateral promise?
A collateral promise is one that is established by statute. A promise established aside from the legal statute is referred to as original. These terms have been introduced by case law to ease contract interpretation. The original promise creates debt because it establishes a quid pro quo relationship.