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#393861 - 11/03/11 06:31 PM
Buyer walking away
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Junior Member
Registered: 11/03/11
Posts: 8
Loc: NY
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Hi. New here and hoping to get some help. Short, condensed version...
We had to move out of state (job) and put our home on the market back in May....by July it had a contract....great, or so we thought. Our agent allowed the buyer (she was representing herself) to have access to the house whenever she wanted. She brought contractors in, plumbers and a few rooms were repainted. We asked that if the buyer wanted to enter the house, to please ask/give a heads up....and nothing. We instructed our agent to remove the lock box ASAP when we found out she was going in without our agent (September...we asked for a printout of the entry box....she never sent it). She said she did (remove box) and the buyer wouldn't enter again....our agent lied. The box was never removed. The buyer continued to go into the home...and had a contractor in for 2 hours....again, as soon as we found out we told her get the box off or she was fired....she complied this time (and again asked for the print out...she said she'd send it but we still don't have it)...this was about 2 weeks ago.
2 inspections have been done...both with just the buyer and her inspector (our agent didn't see the need to go)....in the one inspection, the water main was turned off by the buyer....she then refused to turn it back on, so we, from out of state,had to make arrangements to get it back on....so we did with our agents broker and someone who was a former home inspector.
The buyer never showed for the 3rd inspection....because we asked that a rep. from our agency (or even our agent) please go to the home inspection (our agent allowed the buyer to pick up the key at her office....we put a stop to that)...the buyer refused to go to the inspection with an agent. We were supposed to close in 2 weeks....and we just got a letter for release from the buyer as well as her request that all her earnest money be returned. We haven't signed anything. Her reason....because she doesn't think that water is really on. Our agent is okay with this reason (this buyer "really wanted" the house and even put 3x the payment down) and begged our agent to stop showing it....
Is this even a legit reason? Can this really happen? Our agent seems more involved/concerned for the buyer than being our advocate.
ETA: in going through the paperwork last night (had just been faxed)....we found that our signatures were on a piece of paper we had never seen....paper was notarized by our agents notary....how can that happen? We had to have something notarized in our new state....went to a NP, had to show ID before he would notarize it....
Thanks in advance:)
Edited by chip215 (11/03/11 06:37 PM)
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#393874 - 11/03/11 07:40 PM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 04/12/08
Posts: 4726
Loc: Vermont's North-East Kingdom
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The property is in New York . . . . or your new job is in New York ?
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#393875 - 11/03/11 07:45 PM
Re: Buyer walking away
[Re: chip215]
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Junior Member
Registered: 11/03/11
Posts: 8
Loc: NY
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property is in VA....moved to NY
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#393881 - 11/03/11 08:28 PM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 04/12/08
Posts: 4726
Loc: Vermont's North-East Kingdom
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Who's holding the Earnest Money ?
Demand that they NOT release it until this matter adjudicated.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#393884 - 11/03/11 08:38 PM
Re: Buyer walking away
[Re: chip215]
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Junior Member
Registered: 11/03/11
Posts: 8
Loc: NY
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we think the title company (to be honest, we didn't even know the buyer had put a deposit down....we had asked and our agent brushed us off)...
Is there anyway we can "force" the closing? We just can't believe our agent is accepting their excuse (it's not financial, we've been reassured....it's truly the buyer doesn't think the water is on.)
I absolutely intend on reporting her....and even her notary public for falsifying the document....we've been compiling a list and last night, she just added to it...
We're more worried too b/c we don't/can't hold the mortgage for that house and the rent on our current one for another 6 months....we're not thrilled about this new position we're in.
Oh and thank you for the link....I think that's the same sight I found today:)
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#393900 - 11/03/11 11:53 PM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 11/06/07
Posts: 1602
Loc: Nevada
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falsifying a document could be a crime. the agent and notary should be reported to law enforcement. If convicted, the agent will certainly lose her RE license.
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#393902 - 11/04/11 01:08 AM
Re: Buyer walking away
[Re: chip215]
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Member
Registered: 10/14/11
Posts: 54
Loc: Montana
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If you do not have an attorney, get one now! it will be the cheapest money you have ever spent.If you do have one call them now before you do anything.
Some questions to ask your attorney,
If all the contingencies have been met, can you force the close? this used to be easier than it is now but in the right situation it may be possible. ( I have only seen it done twice)
Can you keep the earnest money? (you will probably never get it, but neither will the buyer)
You said some rooms were painted, if a contractor was hired you need to make sure that they were paid, if not there could be a lien on the home. This maybe an extreme response, but technically it could be considered criminal damage to property.
Ask your attorney to review your listing contract as well, if the property closes you will want to see if you can escrow the Brokers commission until you settle the breach of contract suit he is going to suggest.
Probably getting an attorney involved will be all you have to do to make this close according to the contract. But without consulting an attorney you really wont know what your options are.
Document everything! and definitely file a complaint with the state when this is all over.
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#393918 - 11/04/11 08:07 AM
Re: Buyer walking away
[Re: chip215]
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Junior Member
Registered: 11/03/11
Posts: 8
Loc: NY
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Thanks....we're looking into attorneys down there....we're also meeting with one up here to help us go over the contract.
We've been documenting since we found out the buyer was allowed to go into the house alone...we've been asking our agent to not allow this but she said "she's buying the house, she has a right to do what she wants" (we have this in an email from our agent!!!). Since she wouldn't stop it, we knew then we would report her when it was all done (we also got the broker for that office involved)....
All we asked was that the "rules" be followed....the process of buying/selling be followed....I don't know why this agent pulled this:-( And it's a large name agency....I'm surprised she has no regards for the reputation of herself, the office and the agency....
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#393923 - 11/04/11 08:39 AM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 04/12/08
Posts: 4726
Loc: Vermont's North-East Kingdom
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So the stated reason for trying to terminate the Contract is "that the water isn't on"? Does s/he doubt that the house is equipped with running water?
That rationale just sounds so bogus . . . . there must be something more here !
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#393927 - 11/04/11 09:22 AM
Re: Buyer walking away
[Re: chip215]
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Junior Member
Registered: 11/03/11
Posts: 8
Loc: NY
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We've asked the agent if there's something we don't know...all she says is that the buyer yes, doesn't think the water is on....that's her only reason....that's all she keeps insisting...and for whatever reason the agent is ok with this....there has been a contract on our home since July....she went through all this trouble....spent time, energy in the house...again, put 3x the required deposit down (if I'm wording that right....the earnest money)....she was bringing contractors in, plumbers in (for remodeling,which she didn't do yet)....
She turned the water main off...we really don't think she realized it and panicked when she went to use the water and it wasn't working....we even had the town go check and they verified it wasn't off from the street but inside the house. We had it turned on (the right way....nothing fast, just slow and all faucets opened)....the broker double checked....and the buyer wanted the 3rd inspection....she didn't show b/c we had a rep there....
Our agent keeps stressing that, yes, this is her ONLY reason for walking away....and again, she just wants us to "hurry up and sign" the release so she can re-list it this weekend (we have no intention on using her again)...
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#393928 - 11/04/11 09:52 AM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 04/12/08
Posts: 4726
Loc: Vermont's North-East Kingdom
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It just sounds so bizarre! I think someone just got cold feet . . . . OR it's a case of "familiarity breeds contempt". Buyers never like a house as well as the first time they saw it . . . . it's all downhill from there. Maybe those estimates are now starting to accrue . . . . and scaring someone ? ". . . she just wants us to "hurry up and sign" the release so she can re-list it this weekend (we have no intention on using her again) Is it a fact that the current Listing Agreement expired ? The Listing Agreement can continue on, with a life of its own, even though the property went under deposit (and possibly fell through). Maybe it expired while the property was under deposit, and your anxious Agent,, neglected to get it extended or renewed at that time (while you were maybe in a better mood). She may have been so confident that this would go through that she didn't bother with such a piddly detail as keeping the Listing "current".
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#393934 - 11/04/11 10:39 AM
Re: Buyer walking away
[Re: chip215]
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Veteran Member
Registered: 11/02/10
Posts: 848
Loc: Virginia
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...we've been asking our agent to not allow this but she said "she's buying the house, she has a right to do what she wants" (we have this in an email from our agent!!!). Do NOT lose this email! The buyer does not have an 'right' in the house, I believe she has an 'interest' to some degree, but certainly not a right to do whatever she wants to it without owning it. The buyer's 'rights' are spelled out in the contract the same as your rights are spelled out. Even though the buyer is representing herself (I take it she's not a r.e.agent), is there any possibility that your agent is also representing her without your knowledge and/or consent? I ask because it sounds as though she may be. DPOR doesn't just define representation by a piece of paper, they also define it by an agent's actions. Seriously, just yesterday, a potential buyer asked if I'd give them the lockbox code to a property because we couldn't meet at the time she requested. She, of course, got a big "NO" as my response despite her rantings of 'retired military, upstanding citizen." WOW, I can't wait to read your complaint in DPOR, if they find the complaint valid.
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#393935 - 11/04/11 10:49 AM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 11/06/07
Posts: 1602
Loc: Nevada
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this kind of incompetence and breach of fiduciary duty by licensed agents is deplorable. unfortunately, plenty of agents have this mentality.
the agent works for you, the seller. you call the shots. the agent is bound by law to always do what is best for you, end of story.
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#393939 - 11/04/11 12:13 PM
Re: Buyer walking away
[Re: chip215]
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Veteran Member
Registered: 12/05/06
Posts: 1265
Loc: Wild Wild West
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There are many issues here. So let's try to break it down.
You say that you've had a contract for sale between you and this buyer since July. Do you have a copy of that contract? It should have the amount of the earnest money, it should have the period of inspection (so many days--inpections are not open-ended), and if it's gone on since July, there should be several extensions that you and the buyer have signed.
In the main, if the buyer did not report problems to you within the inspection period and now wants out of the deal, the earnest money is yours. If, however, these "repair" issues arose from financing conditions, meaning that the buyer cannot finance the sale due to a repair condition that you've been unable to fix-- you say the water is "slow" so that's a pressure problem-- she gets her earnest back. (With the exception of the final paragraph in this reply)
You say that some of the "repairs" the buyer made included painting rooms, correct? Why did she need to do that? That doesn't seem to have anything to do with a repair needed for a purchase or lending requirements. Something isn't adding up here. You've also said that the buyer put down 3x the "down payment"-- do you mean that, during negotiations you asked for X$ of earnest money and she up and gave you 3x that amount? Sounds unlikely. There's no set amount for earnest money, it's negotiated. Again, another unusual aspect that makes this transaction not seem like a purchase but more like a lease-purchase or owner carry.
You also say you don't know where the earnest money is. How can that be? Are you saying that at NO time have you been contacted by either an escrow officer OR an attorney? If there's been a contract since July, SOME title work had to be done. You say someone notarized your signature on a "paper"-- what exactly did that paper say? You also say that you had something notarized in your new state. What exactly was that? This is all very murky.
Regarding whether you can force this buyer to buy the house, no you can't. Your "balm", your compensation is only the earnest money deposit. While a buyer can force a seller to sell, it's rare that a seller can force a buyer to buy. A buyer can say that he/she realizes they hate the kind of shrubs in the yard, the color of the roof, any number of things to withdraw. They will lose their earnest money, but that's the limit of the seller's recompense.
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#393941 - 11/04/11 12:41 PM
Re: Buyer walking away
[Re: chip215]
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Junior Member
Registered: 11/03/11
Posts: 8
Loc: NY
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I'll try to address this:)
here are many issues here. So let's try to break it down.
You say that you've had a contract for sale between you and this buyer since July. Do you have a copy of that contract? It should have the amount of the earnest money, it should have the period of inspection (so many days--inpections are not open-ended), and if it's gone on since July, there should be several extensions that you and the buyer have signed.
~~We were finally given the copy this past week (believe me...we HAVE been asking...our agent just never did it)....the inspection was to be done within 8 days of the official contract....she didn't start inspections until September...we never signed extensions.
In the main, if the buyer did not report problems to you within the inspection period and now wants out of the deal, the earnest money is yours. If, however, these "repair" issues arose from financing conditions, meaning that the buyer cannot finance the sale due to a repair condition that you've been unable to fix-- you say the water is "slow" so that's a pressure problem-- she gets her earnest back. (With the exception of the final paragraph in this reply)
~~her first complaint found in the inspection was "plastic or sticky tape that sticks out half an inch from 1/5th of the shingles"....in her email, she did say she wasn't pushing it because "I'm going to buy the house anyway"...we just had a brand new roof put on so she's talking about that (if you've seen a new roof, they all have the plastic until it blows off)...the inspector, twice...found nothing wrong with the house...
You say that some of the "repairs" the buyer made included painting rooms, correct? Why did she need to do that? That doesn't seem to have anything to do with a repair needed for a purchase or lending requirements. Something isn't adding up here. You've also said that the buyer put down 3x the "down payment"-- do you mean that, during negotiations you asked for X$ of earnest money and she up and gave you 3x that amount? Sounds unlikely. There's no set amount for earnest money, it's negotiated. Again, another unusual aspect that makes this transaction not seem like a purchase but more like a lease-purchase or owner carry.
~~I said repaint not repairs:) She had some rooms repainted as well as a porch swing....nothing major but still a pain....we made it clear that we weren't paying anything for her to repaint. ~~we were under the impression (from the agent) that she needed $1000 down....she put $3000 down.
You also say you don't know where the earnest money is. How can that be? Are you saying that at NO time have you been contacted by either an escrow officer OR an attorney? If there's been a contract since July, SOME title work had to be done. You say someone notarized your signature on a "paper"-- what exactly did that paper say? You also say that you had something notarized in your new state. What exactly was that? This is all very murky.
~~This is where I don't have all the info....the check was made to an RE Agency (and in the memo the buyer wrote "deposit")...and at no time has escrow or an attorney contacted us regarding this. I don't remember what the notarized papers were (I don't have the papers in front of me at this moment but will have them tonight)....
Regarding whether you can force this buyer to buy the house, no you can't. Your "balm", your compensation is only the earnest money deposit. While a buyer can force a seller to sell, it's rare that a seller can force a buyer to buy. A buyer can say that he/she realizes they hate the kind of shrubs in the yard, the color of the roof, any number of things to withdraw. They will lose their earnest money, but that's the limit of the seller's recompense.
~~Thank you for this too....it states "If purchaser fails to complete Settlement for any reason other than default by seller, at the option of the seller, the deposit may be forfeited as liquidated damages (not as a penalty),in which even purchaser will be relieved from further liability to seller"....this is what our agent doesn't want us to do...
VA Broker....we don't know....we were told that the buyer was an RE agent over 10 years ago and "only" renewed her license to buy....then we were told that wasn't true either...our agent has not been able to be clear on what's going on....we suspect in a way she's representing the buyer but not telling us....she appears to be more of an advocate for the buyer than us....
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#393949 - 11/04/11 02:26 PM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 11/15/06
Posts: 2050
Loc: The Middle of the Interstate
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chip215, I think even the part in your final paragraph about who your agent represents is valid. Representation isn't just about written agreements, it's also about actions. If an agent says they're a seller's agent, but provides services to a buyer beyond ministerial things like returning signed paperwork or opening property for home inspections, they are acting like a dual agent.
_________________________
Broker-Owner Thirteen Years REO Experience GRI,CRS,CRB,e-Pro
Some days I feel like the bug, other days I feel like the windshield
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#393955 - 11/04/11 03:39 PM
Re: Buyer walking away
[Re: PA Roadkill]
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Major Contributor
Registered: 11/06/07
Posts: 1602
Loc: Nevada
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chip215, I think even the part in your final paragraph about who your agent represents is valid. Representation isn't just about written agreements, it's also about actions. If an agent says they're a seller's agent, but provides services to a buyer beyond ministerial things like returning signed paperwork or opening property for home inspections, they are acting like a dual agent. but the agent's unilateral actions are not legitimate, lacking written authorization for dual agency from the seller. chip needs to confront and repudiate the agent's actions toward the buyer, in writing, to clarify that chip does not approve of this behavior by the agent.
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#393988 - 11/04/11 11:28 PM
Re: Buyer walking away
[Re: chip215]
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Veteran Member
Registered: 12/05/06
Posts: 1265
Loc: Wild Wild West
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Well alrighty then. If the inspection period was 8 days from "acceptance"-- what you're calling the date of the "official contract" (was there an "unofficial contract"?), and that was sometime in July, what, according to your contract happens after the expiration of the 8 days? Does Purchaser have to, within a certain time, give you a list of repair items for you to fix or walk away? And do you then have a certain amount of time to answer the repair request? OR, absent notification from the Purchaser of items disapproved, does Purchaser's silence mean acceptance of the property "as is"? Depending on your answers, we might be able to better tell you what you can do with this buyer.
I'm still unclear as to why the purchaser repainted rooms and the porch swing. Please tell us why that was and why you permitted the buyer to spend time in your home painting it. Or did the buyer have a painting contractor do the work?
Also tell us whether the Purchaser was financing or paying cash.
Regarding the actions of your agent with respect to giving keys to this buyer, that she cannot do. Having to be present with the buyer and her inspector is to my mind not necessary. Not providing you with a copy of your contract is in my state, not permitted. Allowing an inspection period to elapse and not making sure you agreed to extensions in writing, is a problem as it got you where you are in this mess. It's possible that that's where you can hang your hat on going after the agent.
I still would like to know what document(s) you had notarized, and what document you claim was forged.
Also on the "deposit"-- your agent said the buyer "only needed $1000 'down'". Based on what? Is there some set amount for a deposit in Virginia? Is there a difference between a "deposit" and "earnest money" or are they one in the same? Earnest money "deposits" are negotiated. A buyer might want to put down $500, and the seller may want $5000. Clarify who thought $1000 was all that was needed.
Where we're going with all this is to try to develop an overall picture of 1)What was going on contractually, and 2)was there an on-going climate of disinformation/misinformation, carelessness, disregard on the part of your agent that is more serious than the giving out the keys issue.
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#394057 - 11/06/11 11:06 AM
Re: Buyer walking away
[Re: DueDiligence]
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Member
Registered: 10/14/11
Posts: 54
Loc: Montana
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Regarding your inspection and finance contingencies, on the appropriate dates the parties need to show that the contingencies are met or request extensions for those dates(it must be in writing),depending on how your contract is written; with the lack of notice or extension either the contract is null or it continues in full force and the contingency is automatically waived. I have worked with both types and your response would be different in each case. Determining this is beyond the scope of an agent.
It also sounds like you have an agency issue undisclosed or otherwise. If your contract is nullified you do not have to release the earnest money to re list the house(in most areas). Being pressured into returning that money in-order to get the house back on the market is advocating for the buyer. As agents we have to treat the buyer fairly, however applying undo pressure to our clients(in this case the seller)is violating our agency agreement. undisclosed dual representation is one of the fastest ways an agent can get into trouble. Asking you to release the earnest money in accordance with the contract would not be advocating for the buyer, but not re-listing the home until you agree to release it probably is.
Again checking with an attorney is important, re-listing your home, or changing the status in the MLS could be considered constructive notice that your contract is nullified, and you do not want to do that if it is not.
We jump to conclusions way too quick in these situations, it may be that your agent is trying to help the buyer, or it may be that your agent doesn't have a clue whats going on. The agent's intention may be to handle this situation properly but their actions have probably violated your rights under the terms of your contracts.
Again all it may take is a strongly worded letter from your attorney that says something like... "buy or don't buy it, we don't care but you are not getting your earnest money back without a lawsuit" to make you buyer close on the house.
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#394061 - 11/06/11 12:35 PM
Re: Buyer walking away
[Re: chip215]
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Junior Member
Registered: 11/03/11
Posts: 8
Loc: NY
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Due...we didn't allow anything....we didn't know she was going in as much as she was.....we had a neighbor call and ask WHY there was "so much work" being done....we had a neutral party go in (who knows our home well)....and informed of of the changes....after that we asked to have anyone call us anytime they saw the buyer....
We addressed that with our agent the friday before Labor Day weekend...she told us she talked to the buyer and there would be no more going into the house....and that for our own "peace of mind" she'd take the lockbox off....she did neither...when we found out she fabricated that, that's when she emailed that the buyer had the right to do what she wanted (yes, we still have that email)...
Her inspector found nothing wrong with the house with the 2 inspections....if he had, we would have had no problem fixing whatever needed to be fixed....
For the "as is"....the buyer asked that we sell it that way...our agent agreed to this...we had an inspection set up for with the 8 days of the July signing....the buyer canceled it....asked for the "as is" sale and set up her own inspection with her own inspector....
As far as the money....our agent told us the buyer was required to put the $1000 down....her $3000 was labeled as "earnest money" on the contract, buyer wrote "deposit" in the memo....
Also....our agent already re-listed the house (we just checked the website).....we haven't signed anything to allow this....we haven't heard back either (we contacted a lawyer....submitted his suggestion and haven't heard a word back....)....
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#394062 - 11/06/11 01:12 PM
Re: Buyer walking away
[Re: chip215]
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Veteran Member
Registered: 09/02/08
Posts: 761
Loc: Massachusetts
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It would appear that although you're receiving a number of slightly differing answers here, there's a couple of common threads running through most. One is the advice to retain counsel. The second is that most believe your agent is coloring outside the lines. Perhaps through malice, perhaps through stupidity. The reason doesn't much matter, the results would be similar. The questions are did the agent fulfill their duties and if not were you harmed? The first part is a licensing issue. The second part is monetary damages. You're carrying the cost of 2 properties if I understand correctly. Who caused that situation? My take is that I would rather be in your position then in your agent's or the buyer's positions if litigation begins. Just drop it all on an attorney and advise him to call when he has a fat check.
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#394067 - 11/06/11 03:04 PM
Re: Buyer walking away
[Re: chip215]
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Moderator
Veteran Member
Registered: 01/13/10
Posts: 726
Loc: Maui, HI
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Chip,
I realize that you may not have the necessary experience to fully understand the typical process of successfully closing on a real estate transaction (as such there seems to be some inconsistencies/contradictions with a few of your statements), but various forum members have given you great advice thus far. To reiterate on some of those, my first suggestion is to get a lawyer. Nothing will bring the fear of Jesus to your agent (and buyer) than obtaining COMPETENT legal representation. Be a bit more diligent when selecting an attorney (which makes me wonder, how did you choose your agent?). Second, compile all your documentation (communications with your agent and all of the executed contracts). You say that you didn't have a copy of the contract until last week, can you expand on that? When the offer was presented to you, did your agent not give you copies? Third, speak directly to your agent's broker and seek a detailed explanation/current status. And ask for contact information for escrow (phone#, escrow#, escrow officer). Although I find it unfathomable that you haven't been contacted by escrow (or by an attorney, if that's who handles it in VA), you clearly need to know. Ultimately, in this specific scenario (as you have claimed it to be) I'd rather be in your shoes than your agent (who may be losing her license shortly) or the buyer (who may be losing the EMD). Best of luck and please keep this thread updated.
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#394073 - 11/06/11 05:29 PM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 04/12/08
Posts: 4726
Loc: Vermont's North-East Kingdom
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". . . our agent already re-listed the house (we just checked the website).....we haven't signed anything to allow this. . ." That's not something an Agent can do unilaterally.That's why I suggested above that she may have simply taken it off of "deposit" on the MLS and returned the Status to "Active" . . . . which would not constitute "re-listing" but would imply that she's thrown in the towel regarding this particular Buyer; and that shouldn't be done until both you and the Buyer(s) sign a Mutual Release from the P&S. What was the duration of your original Listing Agreement ?
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#394077 - 11/06/11 06:02 PM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 11/06/07
Posts: 1602
Loc: Nevada
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Due...we didn't allow anything....we didn't know she was going in as much as she was.....we had a neighbor call and ask WHY there was "so much work" being done....we had a neutral party go in (who knows our home well)....and informed of of the changes....after that we asked to have anyone call us anytime they saw the buyer....
We addressed that with our agent the friday before Labor Day weekend...she told us she talked to the buyer and there would be no more going into the house....and that for our own "peace of mind" she'd take the lockbox off....she did neither...when we found out she fabricated that, that's when she emailed that the buyer had the right to do what she wanted (yes, we still have that email)...
Her inspector found nothing wrong with the house with the 2 inspections....if he had, we would have had no problem fixing whatever needed to be fixed....
For the "as is"....the buyer asked that we sell it that way...our agent agreed to this...we had an inspection set up for with the 8 days of the July signing....the buyer canceled it....asked for the "as is" sale and set up her own inspection with her own inspector....
As far as the money....our agent told us the buyer was required to put the $1000 down....her $3000 was labeled as "earnest money" on the contract, buyer wrote "deposit" in the memo....
Also....our agent already re-listed the house (we just checked the website).....we haven't signed anything to allow this....we haven't heard back either (we contacted a lawyer....submitted his suggestion and haven't heard a word back....).... your agent cannot agree to anything unilaterally, without your approval. please understand the nature of an agency listing agreement. you are the agent's employer. you make ALL decisions, you direct the agent's actions. also understand that liability for any improper acts by the agent transfers to you automatically. so, you cannot be passive. you must monitor the agent's activities and set the agent straight if a conflict occurs. some agents simply aren't competent enough to handle these matters properly.
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#394119 - 11/06/11 10:32 PM
Re: Buyer walking away
[Re: chip215]
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Veteran Member
Registered: 12/05/06
Posts: 1265
Loc: Wild Wild West
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"WHY there was "so much work" being done..." Exactly what was being done to YOUR property? In one post you said that you conveyed to the buyer that she would not be repaid for the repainting of several rooms and a porch swing (the only alteration you've mentioned). How did you come to find out that she'd repainted? Through your neighbor?
Moving on. So buyer cancels the inspection during the "formal" per contract inspection period. There was, according to you, no signed extension to this inspection period. This is the first drop-dead on the earnest money deposit. That is to say that, absent the next contingency benchmark, the financing contingency, the EMD will be forfeit to you if buyer walks. The buyer agrees to accept the property "as is" with no repair requests.
However, buyer inspections are permitted to continue right up to COE. The buyer can continue to make inspections and investigations. What the buyer cannot do is expect to have her EMD refunded if during continuing inspections and investigations, she finds items to disapprove. She may disapprove, she may decide not to close based on her disapproval, but she may not get her EMD refunded. IMO that's what has happened.
So the buyer being allowed by your agent to come and go onto the property, while annoying and confusing was still part of the buyer's inspections/investigations. Your agent saying in the email that the buyer could do this, while it sounds awful to you, is, IMO, correct. Your agent was hopeful that the buyer would continue with the transaction OR back out. You see, until the buyer either closes or backs out, the buyer can continue to investigate the property.
Where I think you're getting hung up is that you think if the buyer hadn't been able to keep inspecting and investigating (and you blame your agent for this), that the buyer would have closed the deal. But, neither you nor you agent could prevent the buyer from inspecting and investigating right up to COE. The day before COE, buyer gets a "final walkthrough", too.
IMO the EMD is yours and is your only balm.
As far as having to remain with your current agent, I'd think that if she gave the keys to the buyer, you could cancel your listing agreement based on that alone. The fact that your agent put the listing as active on MLS before the buyer failed to close or the contract was cancelled is a problem. You're still in a contract with the buyer even though she's said (unless you have some form of cancellation in writing from the buyer) she refuses to go forward. She could change her mind.
Remember, a seller nearly always is obligated to sell (specific performance), but a buyer is rarely obligated to buy.
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#394120 - 11/06/11 11:46 PM
Re: Buyer walking away
[Re: Maui]
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Veteran Member
Registered: 12/05/06
Posts: 1265
Loc: Wild Wild West
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Chip,
I realize that you may not have the necessary experience to fully understand the typical process of successfully closing on a real estate transaction (as such there seems to be some inconsistencies/contradictions with a few of your statements), but various forum members have given you great advice thus far. To reiterate on some of those, my first suggestion is to get a lawyer. Nothing will bring the fear of Jesus to your agent (and buyer) than obtaining COMPETENT legal representation. Be a bit more diligent when selecting an attorney (which makes me wonder, how did you choose your agent?). Second, compile all your documentation (communications with your agent and all of the executed contracts). You say that you didn't have a copy of the contract until last week, can you expand on that? When the offer was presented to you, did your agent not give you copies? Third, speak directly to your agent's broker and seek a detailed explanation/current status. And ask for contact information for escrow (phone#, escrow#, escrow officer). Although I find it unfathomable that you haven't been contacted by escrow (or by an attorney, if that's who handles it in VA), you clearly need to know. Ultimately, in this specific scenario (as you have claimed it to be) I'd rather be in your shoes than your agent (who may be losing her license shortly) or the buyer (who may be losing the EMD). Best of luck and please keep this thread updated. A lot of very good points. I tend to think that escrow was opened as the OP says he had a document notarized and claims that another document requiring notarization was forged. I'm hard pressed to think of what documents I could send as the seller's broker that would need to be notarized. But I don't work in VA, so maybe... But more than likely those docs were from escrow or the "settlement" entity. And I agree with you that consumers' perceptions of what has happened to them in a real estate transaction are presented many times according to how they believe things should be, with having only a thin grasp of the nature of real estate transactions. And we cannot expect them to have much more. So we have to query (as some of us have done) to piece together what's actually happened. But so long as things APPEAR to go well (even though agents may be tearing their hair out and stroking out), most consumers have no questions or complaints, and I tend to think this thread wouldn't exist had the buyer not walked. The buyer could have repainted, remodeled, re-roofed, come and gone at will; but so long as she closed the deal, not a problem. This is NOT a criticism of the OP, but simply an observation many of us can share. Buyers and sellers can savage each other and give agents fits and scare them to death, do horrible things that the only recourse an agent has is to put the client up against a wall and scream "You cannot DO that"-- but the client will still do it anyway. And when a client goes rogue, an agent can't "abandon" him. You offer that the agent will lose her license. Possibly if she created an implied agency with the buyer who will lose her EMD, maybe. But via the seller, I don't see that right now. The agent could have a problem if she's advertising a property that APPEARS to still be under contract with the instant buyer, should another buyer come along and the seller contracts with a new buyer. Oh, that would be bad.
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#394174 - 11/07/11 06:45 PM
Re: Buyer walking away
[Re: DueDiligence]
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Veteran Member
Registered: 11/02/10
Posts: 848
Loc: Virginia
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I'm in VA. I can think of nothing that needs notarized between seller and buyer except for those items the closing agent is handling.
True, had everything gone along fine, OP would probably not have brought up these apparent defects (painting, buyer coming and going at their own access); but, unless the seller gave written permission - I don't care what it's for - the agent has erred. It's the documentation of the process.
I have always been of the humble believe, protect my own *** first, my client's second because you have to protect yourself from your client which means documenting everything - even if it's an email from the seller saying, "sure, she can go ahead and paint even though she doesn't own the house yet" and you have to protect yourself from the buyer (even if you're not representing them) and you have to protect yourself from a buyer's agent (if one is used) and you have to be 'aware' of how everything affects your client and document, document, document.
I believe agent would be reprimanded in some form, not necessarily the license being revoked, but there may be some fiduciary responsibilities that went haywire.
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#394180 - 11/07/11 08:43 PM
Re: Buyer walking away
[Re: chip215]
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Moderator
Veteran Member
Registered: 01/13/10
Posts: 726
Loc: Maui, HI
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As per the OP, a document was forged and notarized at the agent's office. If it could be deduced/proven that the agent was a party to this fraudulent act, it wouldn't result in license revocation?
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#394187 - 11/07/11 11:20 PM
Re: Buyer walking away
[Re: VABroker]
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Veteran Member
Registered: 12/05/06
Posts: 1265
Loc: Wild Wild West
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The OP hasn't told us what else the buyer purportedly did, or how or why she came to repaint the rooms and the swing; although I've asked several times.
The seller doesn't have to give written permission for the buyer to inspect the property, the permission to inspect up to COE is in the contract. The seller (I'm sure it's in a VA contract) must make the premises available for the buyer's inspections. That is not to say that the buyer gets the keys from the seller's agent, I grant you. She can measure the closets one day. She can measure the windows the next. She can go back and see where the sun comes up in the morning thru which windows If those things are materially important to HER, and it matters not whether the seller or his agent thinks they're important. The seller's agent would have to let her in as many times as she wanted to inspect whatever she was inspecting. The agent couldn't tell her NOT to inspect or tell her that what she wanted to inspect was unnecessary- THAT would be a huge problem. I can see her dilemma and frustration with this buyer.
So, if it were you, and the buyer wanted to continue to inspect and peek, and poke and sit, and feel around, and bring an inspector for this, and an inspector for that, and your seller said, "Lock her out"-- what would you do? You'd agree with your seller to deny her right to inspect, to investigate her proposed purchase to her satisfaction? No matter what documentation you had that the seller had instructed you to bar the buyer, the buyer's lawyer would skewer you. Even though your only recourse to stopping the seller from insisting on locking out the buyer was to strangle him, the buyer's lawyer would still fillet you.
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#394192 - 11/08/11 02:25 AM
Re: Buyer walking away
[Re: chip215]
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Moderator
Veteran Member
Registered: 01/13/10
Posts: 726
Loc: Maui, HI
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Fair enough, all valid points. Clearly we need more information (preferably factual and unbiased) in order to make more sense of what is a very one-sided version of the story.
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#394227 - 11/08/11 05:44 PM
Re: Buyer walking away
[Re: chip215]
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Junior Member
Registered: 11/03/11
Posts: 8
Loc: NY
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Sorry I was off for a bit.... I'm trying to go through all the responses....
As far as the buyer entering the home....she was given the key code, then allowed to have our key....with no one from the agency to oversee anything being done. We get the measuring and such....but no one asked, supervised...nothing....we didn't know that as a potential buyer we could just enter a house whenever we wanted too....we always had to have our agent called their agent...we never just went on our own. We asked out agent to ask for notification....we asked our agent to be available to the buyer....
My neighbors saw the vans/work trucks....they saw the painting being done....our agent confirmed this done...the work was done before even notifying us....I thought if a buyer wanted something changed....they had to ask the seller first?
Our agent called today....asking for us to email giving her the "okay" to relist the house that she already relisted and supposedly had 2 showings yesterday and one for tomorrow. We're not doing this....we're scheduled to meet with a new agent this weekend when we go down there. She then proceeded to inform us that she once had a client in a similar position who had to take the buyer to court to get the earnest money back...and that process took 6 months and we shouldn't go after it (we had to pay someone to go turn the water back on that the buyer turned off, we need to replace 90% of the lightbulbs inside the house b/c the buyer left them on when she locked up....once we heard we asked our agent to go turn them off and she never did, and now we have to have the locks changed because we don't know if copies were made....extreme yes but we would rather be safe than sorry....and then add in travel expenses.....)
Overall, we just feel like the process off this time around....the buyer was in full control of everything that went on....oh, and the notarized statement....I honestly forgot what it was...I don't have it in front of me at the moment....
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#394229 - 11/08/11 06:21 PM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 11/06/07
Posts: 1602
Loc: Nevada
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chip, you've been far too passive with this (former) agent. YOU are the employer. would you let your employee treat you this way?
the agent should advise you of your options...she cannot make decisions for you, and she should not dictate any firm course of action or offer legal opinions. only a licensed attorney can give qualified legal advice.
Edited by shana (11/08/11 06:25 PM)
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#394235 - 11/08/11 08:11 PM
Re: Buyer walking away
[Re: chip215]
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Veteran Member
Registered: 11/02/10
Posts: 848
Loc: Virginia
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Seriously, without you giving permission in writing for the changes made to your home, and, giving the buyer the lockbox code, and, giving her the key, this agent is probably up a creek. Perhaps she won't lose her license, but she will be fined, reprimanded and made to take additional educational classes at the least - if she wants to keep her license.
I'd seriously recommend you considering filing a complaint with DPOR in Virginia. You may not have been the only victim of hers, and, you probably won't be the last unless someone like you files a formal complaint.
I just PM'd you.
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#394238 - 11/08/11 08:29 PM
Re: Buyer walking away
[Re: chip215]
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Major Contributor
Registered: 11/06/07
Posts: 1602
Loc: Nevada
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"made to take additional educational classes"
that is truly a horrible punishment. LOL
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#394247 - 11/08/11 10:14 PM
Re: Buyer walking away
[Re: chip215]
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Veteran Member
Registered: 12/05/06
Posts: 1265
Loc: Wild Wild West
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The EMD should be released to you NOT because you've had incidental expenses or expenses that you shouldn't have born, but because of the contract terms. The buyer walked after blowing her inspection period and accepting the property "as is". You need to be real clear about this. The ONLY time the buyer can get her EMD back is if she walked during the inspection period, or couldn't get financing, or she disapproved of repairs that you agreed to make, or she, during the inspection period, asked for repairs that you would not make. NONE of those things happened. You really have to be clear on this or you're not doing yourself any favors by not understanding the nature of the transaction. It makes it easy for the agent to continue to abuse you or get around you. You're not saying the right things to spook this agent.
The NEXT thing you'll hear if you don't appropriately cancel the listing agreement and get a release, is that this agent has a buyer, ready, willing and able. And maybe she'll tell you'll you owe her a commission, too. And you'll be back here again.
Because, you're not saying that you're cancelling the listing agreement. You're only saying that you're not giving her permission to relist the property on MLS or otherwise advertise it for sale. Vastly different things. Absent a cancellation from you, and release from the boker, the agent still has the listing agreement (Exclusive Right to Sell) whether it's publicly listed/advertised or not. You can't ask another agent to list the property while another broker has the Exclusive Right to Sell.
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#394334 - 11/09/11 07:54 PM
Re: Buyer walking away
[Re: shana]
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Veteran Member
Registered: 11/02/10
Posts: 848
Loc: Virginia
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"made to take additional educational classes"
that is truly a horrible punishment. LOL The real punishment (other than fines) is if they are found guilty, the transcript is published online. The public can read it all - they just need to know where to look. One agent listed a property for sale (spouse wasn't licensed at the time but she was doing licensed duties - duh!). They bought the sellers' house and then immediately turned around and sold it for $50k or so more. You think the original owner didn't get wind of that one? Duh! Right there, I think he should have lost his license, but, he was fined, 'educated' and sent out to do harm again. Ripping someone off financially should be about the worst crime there is. The public is asking you to get the MOST money for their property and an agent buys it from them for far less and immediately sells it again for a much higher price. Geesh! This was before the foreclosure crash.
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This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
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Registered: 05/04/12
Posts: 34
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