After months of not selling our property, we decided to rent it. As soon as we did, we told our realtor that we would no longer need his services. Mysteriously, an offer for full asking popped up that day, but the buyer wanted to do it 100% financing. We were repeatedly assured by the realtor that the buyer's loan was approved and was good.
The problem was, we had signed a lease to rent the place out. Our renters demanded $4K for us to break it, which is the norm in California. So we paid them.
As it now turns out, our buyer's loan is not good. He has bad credit and has outstanding child support that is preventing him from closing a loan and closing the place. We feel our realtor withheld this information from us - and that because of this we are $22K out of pocket - $4K for cancellation and $18K in lost income from the one year lease.
I know it was our decision to accept the offer, but do we have any legal recourse against our realtor?
2007-01-03 16:23:21 · 19 answers · asked by Pimpdaddy Frank 1 in Business & Finance ➔ Renting & Real Estate
I have to say, I have had more than one occasion when a listing agreement expired or was canceled and I got an offer that day or the next. I know it is hard to believe, but it does happen.
That being said, regardless of what anyone tells you (including the mortgage broker/lender) the loan is not approved until it is out of underwriting with a "Clear to Close". Pre-approval and approval letters are generally not worth the paper they are written on. For any agent to make a definite statement that the loan will go through is appalling. They just don't know.
The circumstances of your buyer and how you found out about the problems are not surprising. This happens all of the time.
All of that being said, if you think you can prove that the agent did not represent you adequately you can call your local real estate board and see what your options are.
You might also talk to an attorney, but you are going to need some good documentation/evidence to get anywhere (based on what you have presented here.
I know it is a bad situation for you, but unless you have things in writing or a lawyer advises you differently, I would move on and get a new agent from a different office.
Good Luck!
2007-01-03 19:08:59 · answer #1 · answered by txrealestateagent 3 · 1⤊ 0⤋
You can definitely sue a Realtor for withholding information, but not for bad advise. You would have to provide solid evidence that the Realtor knowingly withheld information. Based on my own experience I can tell you that child support issues sometimes will not show up until the title company completes their title search. This happens during escrow and not prior to procuring a pre-approved loan. Also, there are lots of lender who can do 100% loans for folks with credit problems. It doesn't sound on the surface like the Realtor could have known about the problems with the loan. If your Realtor was also representing the buyer I would advise that you arrange to meet with the agent's broker and express your concerns. If that was the case it could be that the Realtor had his or her own interests at heart instead of yours. Remember though that the agent doesn't earn their commission until the deal closes, so there would be no motivation for the agent to bring you an unqualified buyer.
2007-01-03 18:44:41 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The "Big Red Flag" part of your question -- "We were repeatedly assured by the realtor that the buyer's loan was approved and was good."
Rule #1 in real estate transactions -- NEVER accept any verbal agreements. If the buyer did not supply a letter of pre-approval from his lender, then you should not assume that he has been approved regardless of any verbal assurances.
If you have some form of record -- emails, faxes, letters, etc. -- from the realtor claiming that the buyer's financing was approved, then you might have a case. If, however, everything was just verbal assurances... sorry bud, I think you just learned a very expensive lesson.
2007-01-03 17:01:17 · answer #3 · answered by Gitchy gitchy ya ya da da 3 · 1⤊ 0⤋
Was your Realtor representing the buyer also? Did you see a letter with approved financing from the buyers loan officer? These are a few question you should of asked. All else fails contact the real estate broad.
2007-01-03 16:28:12 · answer #4 · answered by djcapron 3 · 2⤊ 0⤋
Basically, you can sue anyone for anything if you have the money. Check with the Real Estate Commission in the State
of California, if you can prove you were lied to or misled,
you may have a case. All you can do is check the laws and
check the deal out, find out how long the mortgage company
new it was a bad loan. And find another Realtor, it sounds
pretty fishy to me, too.
2007-01-03 20:16:31 · answer #5 · answered by Molly 1 · 0⤊ 1⤋
It all depends on the laws in California. You should look up the Real Estate Settlement and Procedures Act (RESPA) laws for California. Below is a link to a website that I found that provides a lot of good info as well. I work for a title company in FL. (obviously... with a name like "title girl", are you surprised?)
I'm curious... Had a purchase contract been executed? Or any disclosure forms? Although I don't know if the contract in California specifies anything about lender financing for the buyer, they, in addition to a copy of the lease you had with the renters will provide a timeline and support the truth of your claim, should you need to take this further.
Here is the link to California's Department of Real Estate. I hope its helpful. Good Luck!
http://www.dre.ca.gov/default.htm
2007-01-03 17:42:03 · answer #6 · answered by floridagirl 1 · 0⤊ 1⤋
Unless it's in writing that the realtor knew, you can't prove it and there is always a clause there protecting them. So sorry. Makes you sick huh? I just helped my sister sell a house, what a nightmare. Go forward and donn't waste any more time. Get a realtor and sell, don't rent and try to recoup som of the money. If they knew and you can prove it, see a lawyer. Good luck.
2007-01-03 16:30:24 · answer #7 · answered by MISS-MARY 6 · 2⤊ 0⤋
You can sue anyone for anything. But I think your case would hinge on whether you have any hard evidence that the realtor claimed the loan was approved. I find that highly unlikely. Realtors always are making all kinds of "Fluff" claims that they can never be held to.
2007-01-03 16:34:14 · answer #8 · answered by my_evil_twin_41 3 · 0⤊ 1⤋
It depends on the law of your state, but if you can prove it, you might have a case. The key here is being able to prove it: you'll need to show that he was holding onto the offer and not presenting it to you, than he knew the buyer wasn't qualified, etc. You'll need good evidence. Good luck!
2007-01-03 16:32:09 · answer #9 · answered by phillybusinesswoman 1 · 0⤊ 0⤋
Even if the neighbor gives you the name of the kid, can you prove he hit your car? Yes, he may have parked there before but that does not mean he hit your car. You need a witness or catch him in the act. About all you can do is wait for the kid to come back and get the license number off his car. But even then, that does not prove he was the one who hit your car. I suggest you file with your insurance company and pay your deductible. And you could either park your car somewhere else OR park it so close to the other car that there is no way the kid can park there again.....
2016-05-23 01:34:26 · answer #10 · answered by Anonymous · 0⤊ 0⤋