Investor Stole My Deal - Don't Let It Happen To You
I had to post this for others to learn from my mistake. No matter how much experience you have, you will always be at risk of taking a lost at some point.
My problem, I'm way to nice and give everyone the benefit of the doubt. I ASSUME everyone has morals and should do the right thing. Naive okay, but DAMMM ! This is just DIRTY !!!
QUICK STORY:
I work really hard to clear a title issues on a property, right at the end I had 1 more call to make to finalize the issues and on this very day, I called the Seller to let them know the good news and guess what, the SNAKE SELLER offered the property to another buyer for more money, (mind you, I would have paid more if he just said so) The new buyer and the seller are now in the middle of doing a contract while I'm on the phone trying to give good news, so now my deal goes down hill. I ask the seller what title company they are using, and he said Im not sure you can ask SUZEY, I'm thinking okay SUZEY works at the title company, I get on the phone with her and find out its the NEW BUYER, (REALLY!!!) I tell her immediately that I have Title Open and Im buying this property, I told her There are Title Issues that I have cleared and some I need to finalize.
Her reply: so you telling that IM GOING TO HAVE TITLE ISSUES WITH THIS PROPERTY ?
My reply: YES Look at the title chain from 1977, have you looked at the title?
Her Reply: We'll I have not got that far, I was buying cash, without a Title Company since its a good deal.
Now, I didn't blow up, I just thought she would say oh well if you have a contract open I won't deal with the seller, he never told me anything about you. BUT SINCE SHE DIDN'T (morales out the door)
I just kindly took all the title issue work I did and didnt finalize it, I made a phone call and told this very important person that was crucial to the closing, NEVER MIND - I don't need you to pull that string, thank you million, but the property is sold already.
LESSON LEARNED: Lock up every deal with an AFFIDAVIT & MEMORANDUM of Agreement Concerning Real Estate. This way those snake sellers and investors with no morales can get stopped in their tracks when they try to open title on your property.
HERE IS A LINK TO THE FORM TO DOWNLOAD: https://www.biggerpockets.com/files/user/SabrinaT1...
(Disclaimer: This is not legal advice this is for education purposes only and personal experience, seek an real estate attorney to verify the validity of this document in your state.)
I NEED YOUR 2 CENTS COMMENT: Has this ever happen to you ? How do you feel about what happen, was the seller wrong or the buyer?