SELLER BREACH OF CONTRACT SHOULD I SUE

General Real Estate Investing
1

Had a deal that was pretty much a guaranteed profit of 3k

( u can reference WHEN A DEAL GOES BAD )

the seller was causing all types of problems with the transaction and claimed that the check which was given to her by my investor could not be cashed because her father ( house is in his trust ) did not have a trust account however she stated that she was the POA for his trust which gave her the right to sell.

Additionally she stated that she had been in control of her fathers finances for 6 years since he is incapable medically to do so. i found this a bit strange that she supposedly handled all his finances for 6 yrs but didnt know he did not have a trust account. after this which was now the 4th check written to her that she had an issue with i told my investor she gets nothing out of escrow anymore.

seller picked both title companies first one was with old republic and her neighbor was escrow officer. after problems with the trust docs she cancelled and wanted to go to first american title (FAT)

now about the contract

she was REFUSING to give FAT the needed documentation stating that she cleared up the transfer from her fathers trust to her.

the escrow officer was a charming lady named mellissa who along with me took about 15 mins of the seller SCREAMING AND YELLING at the top of her lungs at us about if she cant get 5k deposit
( amount of the previous 4 checks given to her )
that she was not going to give FAT any documents unless its an even exchange the docs for a 5k cashiers check

now i had her sign a paper i got called (sellers acknowledgements)

where in sec 7 it states word for word here

SALE IS FINAL
I understand that by signing the agreement i have agreed to sell the property to Buyer and am now bound by the terms and conditions described in the agreement. I further understand that i cannot " change my mind " or cancel the contract at some later date, nor can i continue to market the property to any other buyer .

additionally in sec 1

OWNERSHIP OF THE PROPERTY
i am the owner of the property ( or i have an equitable interest in the property)
and am able to contract for its sale

SELLER INITIALED BOTH AND I GOT CONTRACT NOTARIZED

now i have NEVER been to court before for anything however my investor still wants this heap o junk house and is stating that i should sue her for my fee which would have been paid by him at COE if she would have complied with the agreement.

so technically she cost me 3k and boy could i use that right now

i would like to know if i should take this to small claims to recover my lost fee and hopefully force her to furnish the documents so my investor can close and be happy

2

she’s crazy. you can’t argue with crazy.

she may be doing something illegal, since the documents she can’t provide involve the transfer of the property into her control. The fact that she starts screaming when pushed to provide the documents attests to this. She may be loudly insisting on an “even exchange” so she can take the $5k and run away when the deal falls through because she doesn’t have POA.

I’d say just walk away. You aren’t out anything at this point but time.

3

Did you do a title search before you enter into agreement? If you did you would save a lot of time and heart ache.

4

At the beginning it’s often difficult to keep our emotions from clouding our judgment. We get really invested in these deals sometimes. That’s part of the satisfaction in getting a deal done.

However, in this case, you’ve got a dishonest dealer. She’s not crazy. She’s a shark.

As far as you’re concerned (maybe not yet, but eventually), it’s all about your policies, procedures and closing protocols as far as the mechanics of the deal are concerned, not the seller’s. When you lose control of this part of the deal, which is precisely what’s happened in this instance, then it’s like emptying a box of stray cats and then trying to gather them all back in.

I know this may sound simplistic, if not hard to swallow, after your investment of time, but you need to walk, and find another deal.

This deal’s dead. Actually it was never a deal in the first place. The “seller” appears not to have actual control of the title, and was attempting to pull a very fast and hard con job on you.

Conventional closings at this level of investing are not complicated.

Hope this helps.

5

javipa my friend thought you went on vacation again. :banana

6

I’ve just been making money. I do that in my spare time, when I’m not on here. j/k