gatrhumpy

iTrader: (1)

OK, I'm incredibly pissed off right now. We HAD a buyer for our home, and we structured our contract with her saying she had to get a home inspection within 5 days. She didn't do that. That's OK. We said she had to apply for a loan within five days. She didn't do that. She started to shop around for a better interest rate, which she is entitled to do, but within the timeframe that we specified. She didn't even apply for and get approved for a loan for our house.

She put down a good faith deposit of $3,000 with her real estate broker, NOT a title or escrow company. I want that money, it's legally ours, because she didn't fill her terms of the contract. How do we get that money? Her agent and broker stopped taking and repsonding to phone calls. Seeing that we have to reduce the price of the house, I want that money to offset the cost a little. How much would a lawyer charge if we tried to go after that money? Do we even have to get a lawyer involved? Can't we send them a time-dated certified letter stating that money is ours, and give them a time in which they have to comply?

Please help!

mamboking

The fact that the alleged deposit was with her agent and not yours, kinda makes me think you're SOL....

BigPimp

Did she sign a contract saying she will forfeit the deposit if such happens? If so, you have a legal obligation, otherwise a verbal contract, tougher to enforce and do you really want to go through this.

Do you have an agent that represents you?



I would also take a drive to meet the agent and the broker face to face.

Also, next time make the deposit goes to escrow.

gatrhumpy

iTrader: (1)

I'm trying to get the Maryland Association of realtors involved, along with the FTC. I think if I do that, that will light a fire under their asses.

gatrhumpy

iTrader: (1)

Yes, I ahve an agent that represents me. He had been trying to get in contact with the buyer's agent, but he can't anymore. The other agent simply won't take or even return his phone calls. She is being very unprofessional about this. I have to get in contact with my agent and find out how our contract with the buyer's agent is structured, and how the good faith deposit is sitting.

Mike 350Z

When we bought our house, our $3000 check went directly to the seller, or at least to HER realtor (can't remember). No reason for this woman to write a check to her own realtor. You might be SOL, but how would a seller prevent this in the first place???

gatrhumpy

iTrader: (1)

Apparently, maryland state law provides for the release of these funds if neither party fullfills the terms of the contract. This is what a Maryland state attorney wrote me today:

In order to get your deposit beck, both parties (the sellers and the buyers) must sign a release of deposit agreement. If either party or both are unwilling or unable to execute the release of deposit agreement, Maryland law provides a procedure that, in the absence of a signed release, authorizes the broker to notify the owner and the beneficial owner that the broker intends to distribute the trust money in the manner which, in his good faith opinion, is appropriate under the terms of the contract. The notice must be in writing and state to whom the trust money will be paid. The notice must also advise both parties that they may submit a protest within thirty days from the date the notice was delivered or mailed by the broker and that the money will be distributed as proposed by the broker if no protest is made. The notice must be either hand delivered or sent by certified mail, return receipt requested and by regular mail. It is also required that the agreement entrusting a broker with trust money contain a statement that the broker may distribute the trust money in accordance with the provisions of this law in the event that the relevant real estate transaction is not completed. If no protest is received, the broker may distribute the trust money as proposed in the notice.

If any party protests the proposed distribution of the trust money as stated in the broker’s notice, the broker may seek a court order by filing an interpleader which requires retaining legal counsel to file the necessary pleadings with the court. A duty to submit all claims or disputes to mediation may also be contained in the contract, and should be reviewed.



For your information, Maryland law requires a broker to maintain trust money in an authorized account until: (a) the real estate transaction for which the trust money was entrusted is consummated or terminated; (b) the broker receives proper written instructions from the owner and beneficial owner directing withdrawal or other disposition of the trust money; (c) the broker files an interpleader motion with the court, which he may do at his discretion, or the court orders a different disposition; or (4) a party fails to complete the transaction. Usually, a broker must receive a signed release by all parties to the transaction before distributing the deposit money.



If a dispute arises over the release of the deposit, you should review your contract to see if it requires you and the buyer to mediate. It’s up to you to decide whether you want to consult an attorney. Unfortunately, I do not know what an attorney would charge to assist you in such a matter.

Mike 350Z

all that expert advice, and he wouldnt know how much an attorney would charge?

gatrhumpy

iTrader: (1)

Considering she's an attorney herself, I find that hilarious too.

doopstr

You are in a realestate transaction and not using a lawyer? wow. No wonder they are walking all over you.

gatrhumpy

iTrader: (1)

Well, considering going after $3,000 involving lawyers would cost me more than $3,000, would you consider that a sound financial decision? I don't. I'm trying to go after these idiots using all available options other than a lawyer. There are a couple out there, so I'm investigating.

NSXNEXT

iTrader: (2)

It's called C.Y.A.

gatrhumpy

iTrader: (1)

Consult Your Attorney?

doopstr

I'm just saying that if you spent the average of $700-$800 that it costs to have a lawyer for an entire transaction he/she would have demanded that the money be held in your attorney's escrow account right off the bat.

Considering the amount of money that is changing hands (hundreds of thousands) the $800 is just piss in a bucket.

gatrhumpy

iTrader: (1)

Yeah, you are right about that part. But then again, it doesn't matter where the money is being held. If the buyer does not agree to release those funds, then the lawyer has to take them to court, and then bam, we owe the lawyer $4,000 to get $3,000.

mamboking

give this guy a call, I hear he is pretty good at collecting money for a nominal fee...

MR1

Just a couple of small things to consider.

1 Attorney is independent business, charges vary.
2 Laws vary between states, only some require / suggest legal representation
3 Barring misrepresentation, facts and terms are included in the signed contract, seller should have a copy, read it before moving forward.
4 If escrow was opened (I assume this is normal in your state)you may not be able to start another transaction until this one is resolved.
5 Sorry to hear about the problems, hope you get the money and another buyer quickly.
6 Give your agent a kick for not following up on a timely basis in this changing market.

It ain't sold till title transfers and you get paid! This is not legal advice, just my opinion. I am not an attorney.

Mike 350Z

Do most people get a lawyer when buying/selling houses? I didn't think this was the norm.

gatrhumpy

iTrader: (1)

LMFAO. I wonder how much he charges. I would rather go that route than call a lawyer.

gatrhumpy

iTrader: (1)

OK, so here's what we are doing. We are waiting until the COB business today to do anything. My agent talked with the back-up buyer last night on the phone (who apparently is not taking calls or just blocked my agent's phone number from his list of callers). The back-up buyer (Ron) verbally agreed last night, while at a party, to send in something in writing (he already sent in an offer to us) requesting $8,000 in closing help, but we'll be getting full price. Ron said he would do that today. If he doesn't, I'm going to call my agent tomorrow and tell him to make the first buyer's contract null and void. Then, I'm going to send a certified letter to the buyer's broker, stating that the buyer never abided by the terms and conditions of the contract we set forth, and stating maryland law, Section 505 (b)1, authorizing the release of those funds to us. If he says no, then we have two options: 1.) We can sue the buyer, buyer's agent, and agent's broker to release those funds (and for more money, more on that later), or 2.) We can go to mediation. The mediator would probably be the Maryland Association of realtors, and we'd have to pay their fee. I would have the buyers pay for the entire fee.

We did receive another offer, but they wanted $302,000 with $5,000 in closing help. That's $a total of $22,000 under what we had asked. My agent is currently reviewing the terms of the contract, but I'm going to ask him to ask them to come up in price at least $10,000. If they don't, then I want to reject them, but my wife wants to accept them. We got fucked before with being greedy with an offer, but I have a bottom line I want to make, enough to pay off 20% on our next house. If we accept this offer as is, we can't pay off 20% on our new house.

*Update. We are going back to them with $313,000 with $5,000 in closing help. we'll see what happens.

OK, so if we accept this new offer as is, we would be out $17,000 from the original offer. Because of this, I would sue the original buyer for that amount because they didn't get their shit together. If we could get a portion of that, even after attorney's fees, I would be happy.

MR1

All well and good to want xx$ clear from transaction. Remember that market, not your wants set the selling price. At this point you are not really losing money, just not making as much. A few months down the road some might have to pay people to buy their houses.

Check on that two open transactions thing that I mentioned.