I was in negotiations with a real estate agent over the price of a home that i was selling in 2005. On the original contract, it listed a price of 198,000. The buyer only qualified for a loan of 185,000. I later felt as though I was low balling myself, and decided to raise the price of the home to 208,000. The Real Estate agent had my cross through the original price and initial above it. She promised to retype the contract, and have me sign it with the new figure. I never received a copy of the new document to sign. After about a week I decided to fire the agent because I didnt get a copy of anything that I signed. About three weeks later I received a hand written not on my door stating that settlement was that morning. I left the agent a message basically telling her where to go. Approximately a week ago I get a letter from small claims court on behalf of the original buyer stating that he wants 12000 for moving expenses, VA appraisal, credit report etc, and "Pain and Suffering"
2007-03-22 05:38:59 · 7 answers · asked by dgoldenboy67 1 in Business & Finance ➔ Renting & Real Estate
The buyer agreed to your price and you signed the contract. I don't understand where you think you were right here. You seem to feel justified in breaching your contract and screwing the buyer because your agent didn't give you a copy?
It sounds like this is only a small part of the info here. But from what you have related, I think you should be happy to get out with only a small cash settlement with the buyer. They should be suing to enforce the contract. I think you are definitely open to some damages here. It is fine to fire a RE agent and it is fine to tell a buyer to pound sand, but NOT AFTER CONTRACTS ARE SIGNED IN GOOD FAITH. You'd better hope there is more wrong with the contract. You definitely need an attorney to clean this up.
2007-03-22 05:48:14 · answer #1 · answered by sdmike 5 · 2⤊ 0⤋
I am not sure I see a clear picture here. Did you sign a contract stating you would sell the property to the buyer for either 185,000 or 198,000? If you did sign a contract to sell to a specific person for a specific amount then that amount is the deal as far as I know. If on the other hand you only listed the house for a certain amount and did not sign a sellers contract to a specific buyer, then you should be able to raise or lower the price without repercussions. Another question here would be what did you cross Through, and what did you initial. Did you cross Through the 198,000 and put 185,000 then initial it? If so your in a deal for that amount. Did you cross Through 198,000 and write in 208,000? (disclaimer this is my personal thoughts I am not a legal adviser) I hope this helps you. Also it sounds like a bit of money involved here it might be to your advantage to consult a real estate attorney to review your information and to obtain legal advice.
2007-03-22 06:08:26 · answer #2 · answered by Dee 3 · 1⤊ 0⤋
I am a real estate agent. I guess my first question is, did you sign and accept the offer from the buyer at $185,000. If so then you have to sell your house to that buyer and pay the commission to the agent, or pay legal fees to them both. As the seller you can not change your mind once you accept the offer.
If you did not accept the offer, than you dont owe the buyer anything. But since you cancelled the contract with the agent, they could come after you for their portion of the commission.
If you are unhappy with an agent, the best thing to do is to sit down and ask them if you can agree to cancel the contract. There is a legal form you both must sign. This way you are not liable for any expenses.
2007-03-22 05:50:10 · answer #3 · answered by GEE-GEE 5 · 0⤊ 0⤋
A valid contract is based on an offer by the buyer and acceptance by the seller. Both parties must sign the contract agreeing to all terms. If any material term such as price, settlment dates etc need to be changed, typically, the person proposing the changes prepares an ammendment which is annexed to the initial contrcat. Then both parties agree and sign the ammendment. In real estate, if a term such as price is crossed out and replaced with another, the change has to be signed/initialed by both parties. You cannto agree to sell for $198k, have the borrower sign then up the price to $208k and consider the same contract valid without getting the approval of the buyer as well. Changes in such a manner nullify the contract. So you can see that the buyer has a good claim agst you for his losses.
2007-03-22 06:10:24 · answer #4 · answered by boston857 5 · 0⤊ 0⤋
The realtor has no authority to change a Contract of Sale. Only the two representing attorneys and buyer and seller can agree to a change in terms. If you never recieved any amended documents, then the original sale price is the one recognized in a court. The buyers do have the right to go after you for "Failure to Perform" as you agreed to in your signed contract. Once you have entered an agreement, you can not just change the sale price. For one thing, it sounds as neither attorney was notified, and there is a chance that the property might not have appraised for the inflated sale price, which means the bank would have declined the loan. They can sue you for incurred expenses, however small cliams court judges do not offer damages for "pian and siffering" all that easily. You should consult with an attorney to see what their rights are, as well as yours.
2007-03-30 05:33:22 · answer #5 · answered by novastarbanker 3 · 0⤊ 0⤋
Get all of the paper work together & take it to a lawyer & see where you stand.
Good luck.
2007-03-27 18:18:17 · answer #6 · answered by Floyd B 5 · 0⤊ 0⤋
Your signature and date makes it valid
2007-03-22 05:46:59 · answer #7 · answered by shorty 6 · 0⤊ 0⤋