Hello. I am looking for any advice or issues to watch out for on our personal home closing. We took early posession of a home with a closing date of Sep.29, 2006. We paid the owners their equity (25,000) in cash and make the payment in full every month on their existing mortgage. The realtor is representing both the sellers and the buyers (us). She coerced us into this by saying it would make the transaction easier and the buyers would be more likely to accept our offer. The realtor agreed to take her commission at the final closing.
Here are my issues with this situation:
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The realtor has hounded us the entire time we have been here wanting an early closing. The sellers are being sued over a bad business deal and they will be paying 20,000 or more to compsource for workers comp monies they failed to pay. My husband and I have hesitated to close early until the seller resolves this situation. The house is still in the sellers name.
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If he does not resolve the issue by closing and we do close on the house are we responsible for the debt? Can the debtor come back on us? I have not found a lien at the present time, but the court case has been postponed to nov. We have a closing date of Sep. The title is supposed to be ready, and we will do a gap check before closing.
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The realtor wanted our lender info, although we gave it to her at the first closing. We have been hesitant, and put her off as far as communicating with her because of these issues and the fact that this woman acts like she is a nutcase. We have been in communication with the sellers.
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Here’s where it gets crazy. The realtor put the property back on the market! It is listed in several real estate publications. She told our neighbors (and in turn the whole neighborhood) the seller is going to sell it out from under us.
This is our home we live in with our 3 girls; they are embarrased all their friends think there is something going on with us “losing” our home.
We have a signed contract and a specific clause that states we will be refunded all our payments as well as the 25,000.00 we put down at the first closing if the sellers fail to close on or before the closing date.
She requested information from our banker that was way more invasive than what the banker thought neccesary. She wanted deposit history, etc., bank account balance, there is a term the banker used that I can’t remember. Of course our banker did not give her the info.
She called our home and cell phones numerous times leaving threatening messages if we didn’t get with her or call her back she would start taking back up offers on our home. She has shown up at our home and questioned our babysitter and kids as to our whereabouts, if my husband and I were still “working”. We own 2 businesses and have made every payment to the seller on time as agreed on.
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Do I have to pay this lunatic a commission? Can I report her to the real estate commission for this behavior?
I am so angry right now I want to put this realtor in her place, but I do not know my rights and am researching now to find out what recourse I have. I certainly don’t feel she has “represented my interests” or worked on my behalf in this transaction.
In texas the realtor cannot legally represent both the seller and buyer. it’s a conflict of interest.
you need an atty.
good luck.
mcwagner,
Thank you for your reply. We live in Oklahoma. Would anyone know where I might be able to find the information regarding the realtor representing both parties in my state? I am in the process of looking for a lawyer who specializes in real estate.
May I ask who the Realtor is? You can send her name to me privately. I’m moving to OK soon and will be sure to avoid her.
A few things…
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I’m not sure why you would release funds to the seller and not take title at that time? While the property is in the seller’s name, it is still subject to any liens filed against them. You really need to get your deed recorded ASAP to protect yourself. If there is no lien on record when your deed records, you will not be subject to any later legal judgment but if a lien records before you will not be able to get clear title to the house (and I would think the chances of you getting your money back are slim to none).
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Is there a reason you have delayed closing? Whatever it is, protect yourself…get it closed and get that deed.
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If it isn’t possible to close right now, check into filing your own lien against the property to secure your $25k
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Does this Realtor work under a Broker or is she a Broker herself? If she is an agent working for a Broker, contact the Broker ASAP and let him/her know what is going on.
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For future reference, never EVER release money to a seller until your deed is recorded. That applies DOUBLE to a seller who is already in a legal mess! This is a HUGE can of worms and you are in danger of losing the house and your $25k as well as being tied up in a legal battle for a long time to come trying to get things straightened out. Your Realtor’s increasing anxiety may be because she realizes that SHE messed up and is in danger of 1) being sued by you if this thing blows up and you lose the house and your money 2) losing her real estate license and possibly being subject to criminal action…especially if it turns out there is fraud involved somewhere…
Hello,
I see several red flags with this deal in my opinion. Real estate law varies from state to state, however, you may find something in this that will help. The information I’m offering is limited and only my opinion as I don’t know the full scope of the situation.
First, taking early possession, plus paying $25k, and making the seller’s mortgage payments all without holding clear title isn’t good. Working with one agent/broker representing both buyer and seller can be plagued with complications. Most agents/brokers perfer not to work under dual agency for very real reasons.
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The agent/broker (dual) is representing both you and the sellers. He/She has a fiduciary responsibility to inform you and/or the seller of any pending or potential suits, bankruptcy, or other undesirable situations that would effect the buyer/seller judgement in making a deal as these are material facts to be discovered and disclosed by the agent/broker beforehand and shared with both buyer and seller.
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Any debts associated with the seller that are placed as liens on the property runs with the property/land, not the debtor according to NC real estate law. This is an example of the complications that arise when taking position of property without clear title.
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Suggest to the broker that you want to incorporate a Lien Waiver of sorts that is signed by the seller that will release you of any debt responsibilites of the seller as it relates to the home during the time he/she has owned the home. This needs to be recorded.
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A realtor can’t legally sell the home to another while you’re under a written sales contract that stipulates your deal and future closing terms. If so, the agent/broker/seller will all have breached the contract.
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You’re closing is scheduled for Sept. 29 as should be shown in your sales contract I hope. If you don’t receive clear title by closing date the deal is off, and if the contract states, you get all monies back and no commision is earned to the agent/broker. Read your contract very carefully as this will give you all that is needed to move forward.
Why are you not calling the agent/broker back? You’re banker is doing a good job of protecting your information ;D. It looks as though your agent/broker is walking a thin legal line on this deal and has discovered a few things that might jeopardize his/her license.
Finally, make sure you fully understand the deal you’re in as your contract is the binding document the will prevail.
Good luck
Wow… that’s awful. Check into filing a complaint with the Oklahoma Real Estate Commission. Also, check the statutes to find out whether or not the agent can represent both the buyer and seller in a transaction. In MD, it’s illegal, however DC allows it. Each state has it owns rules.
Regardless, based on her behavior, you are well within your rights to file a complaint with the commission.
http://www.ok.gov/OREC/documents/orec_Lic_codes_rules2005.pdf
And so long as you are performing in regard to the terms of the purchase agreement, they can not sell it to someone else. Did you give the earnest money deposit of $25k to a title company or directly to the seller? If you gave it to the title company/attorney, then you should be fine, otherwise, you should definitely check into recording the lien.
This really sounds like a bad situation… one that gives real estate agents a bad rap…
There are a few fun things that you can do here:
- Opt to be represented by your own real estate agent.
Although you are “dually represented”, the agent for the seller, might only owe you ‘honesty’, and does not have a fiduciary duty to you… states vary on what is dual rep. You may be able to change your broker rep, and have them compensated by the seller… mean and nasty, especially since it cuts her commission in half.
State-to-state, you can have that agent replaced if they are a dual rep, and you are the buyer.
- Another fun point here could be breach of contract… and this is where you might want to let the sellers know that you are considering an action against them because of the actions of the real estate agent… agent being a word for their rep… she’s acting on the behalf (beknownst to them or not) when she places the property back on the market.
Another thing that caught my eye is her request for your lending information. That is a breach of privacy, and this information is regulated. There are strict lending privacy policies… you have to authorize the release of the information you are describing.
One last thing that might be a problem here is what’s known as a lis pendens. When there is outstanding litigation, there might be a problem receiving clear title from the seller…
Good luck with this… at worst, it will probably be closed in 15 days, and you’ll never use that broker again.