Can I be sued by the buyer and realtor?

Lender · Estero, FL · Member since 2016 · 6 posts · 0 votes

I listed my home for sell with a realtor without my wife. I signed a contract with a buyer in my name only. My wife doesn't want to sell so she won't sign at closing. Can I be sued by the buyer and Realtor?

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Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

10y

The realtor procured an accepted offer. You may very well owe him/her a commission.

I 2nd @john Anderson 's question. I can't imagine doing a decision this major on my own. I wouldn't survive!

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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
10y
The realtor procured an accepted offer. You may very well owe him/her a commission.
I 2nd @john Anderson 's question. I can't imagine doing a decision this major on my own. I wouldn't survive!
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Benjamin Haberman
Real Estate Broker · Ocean View, NJ · Member since 2014 · 188 posts · 82 votes
10y
Why would you ever do this?
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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
I'm not a lawyer, nor do I know how Florida purchase contracts read, but you SHOULD be able to get sued for that.
Think of all the time and money people are spending based on the false pretext that you have a home that you're able and willing to sell. The truth is that you AREN'T in a position to sell the house, yet you are wasting everyone's time and money for absolutely no reason at all.
Out of curiosity, what is the motive for pretending to have a home for sale that isn't actually for sale?
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Andrew Lee
OP
Lender · Estero, FL · Member since 2016 · 6 posts · 0 votes
10y
So I brought the home before we were married, so I didn't figure she needed to be on the paper work. We can't find a home to buy, so we both actually want out. The buyer is playing hard ball, so I'm looking for the least costly exist
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Andrew Lee
OP
Lender · Estero, FL · Member since 2016 · 6 posts · 0 votes
10y
I'm sure I can workout a deal with the realtor, I just want the buyer to go away. Do you think the buyer can sue me? Florida has a homstead law, where if your married both have to sign to transfer ownership
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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
Oh ok @Andrew Lee, maybe I went a bit tough on you in my earlier post. :)
Most common & cost effective way to kill the deal without exposing yourself to liability (I am not a lawyer, check with a lawyer, etc), is just to play super duper unreasonable hardball right back.
They counter that you are to fix the a/c with a contractor they pick, and want a $5k price reduction? You counter the counter agreeing to fix the a/c with a contractor you pick, paid for by the buyer, and demanding a $75,000 price INCREASE. Odds are, there will be no "meeting of minds" in the middle, and it'll kill the deal.
But if someone DOES agree to that $75k price increase, and can actually afford it? Great, then they are in effect paying for a year of you renting, while you continue to house hunt in a very leisurely fashion!
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Andrew Lee
OP
Lender · Estero, FL · Member since 2016 · 6 posts · 0 votes
10y
no worries... Thanks for the feedback
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Chris T.
Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
10y
@Andrew Lee
How about discussing your predicament with your attorney?
If you're still in the attorney review stages, your attorney can cancel the contract. Playing hardball may work with some people, but some people might take it personally and bring it to the next level.
Do you really want to escalate it?
Disclosure, i am NOT an attorney.
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Victor N.
Investor · Wellington, KS · Member since 2016 · 256 posts · 188 votes
10y
Did your realtor know you were married? If so, he/she should have told you that your wife had to agree. Check with your lawyer but you probably don't have a complete enforceable contract to convey the homestead without your spouse's signature.

I am not a Florida lawyer so this is not legal advice which you need to seek asap.
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Account Closed
Investor · Orlando, FL · Member since 2016 · 1k+ posts · 780 votes
10y
The real issue that needs to be addressed is WHO IS ON THE DEED AS OWNER? Andrew if you are the only one on the deed as owner it does not matter if your wife won't sign because she wouldn't need to sign anyway because she is not on the deed!! Now the next question is can you get out of the sale? It all depends on the exact wording of the contract.
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Christian Bors
Real Estate Agent · Mechanicsburg, PA · Member since 2014 · 529 posts · 217 votes
10y
@Account Closed mentioned, the listing broker procured an accepted offer. Unless you have a reason other then I changed my mind and do not want to sell, you will have to pay the commission.
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Andrew Lee
OP
Lender · Estero, FL · Member since 2016 · 6 posts · 0 votes
10y
Hey Stephen
This home is our homestead property, so everything I've read said it doesn't matter in these cases if your wife is on the deed.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
I just tried to buy a house with somewhat of a similar situation. According to the lawyer I talked to, the wife must sign even though she is not on the deed.
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Robert Buck
Investor · Berkeley Springs, WV · Member since 2016 · 35 posts · 11 votes
10y
I may be totally off on this but in any real estate deal/sale. If your wife is required to sign at closing to sell it she would have been required to sign the listing contract with the agent when it was listed. If she didn't sign the listing then everything after that is void. The listing agent should have known this, if she isn't on the deed then not sure why she would have to sign at closing. I've bought and sold properties in only my name that were purchased before and after I was married. Unless your state laws are different.
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Robert Buck
Investor · Berkeley Springs, WV · Member since 2016 · 35 posts · 11 votes
10y
I just bought two houses this march and wife isn't on the deeds nor did she have to sign at closing. We keep it that way so we can each do 10 mortgages before we hit the Fannie Mae troubles.
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Account Closed
Investor · Orlando, FL · Member since 2016 · 1k+ posts · 780 votes
10y
I am not a lawyer but that was my opinion. YOU SHOULD consult a lawyer on this situation.
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Mark Manship
Realtor · Pensacola, FL · Member since 2014 · 54 posts · 20 votes
10y
Just another throw in here: just recently closed on a property in Florida - while my name is the only one on the title, my wife DOES have to sign at closing due to the fact that her primary residence has debt (a mortgage) associated with it, among other reasons tied to Florida homestead laws.
According to..."Paragraph (c) of Article X, Section 4 of the Florida Constitution prevents the married owner of protected homestead property from conveying, encumbering, or otherwise alienating that property without the consent of the owner's spouse, and also prohibits the owner from devising that property if the owner is survived by a spouse or minor child."
I'm not a lawyer, and this issue could easily (more accurately) be resolved by a local attorney, but homestead laws are pretty wide reaching in that they prevent certain sales of property to protect the family.
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Greg H.Pro Member
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Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
10y
First off, I am not a big fan of seller's changing their mind after entering in to a contract to sell a property. The effort put in to getting the house sold by the agent as well as the title company will net them $$$. None of us like to work for zero $$. The buyer, depending on where in the process the closing is, could easily be out more than $1000 or so in inspection fees, appraisal fees and such as well as the anguish of now having to find another property.
But here goes...... Since the property is your homestead, the title insurance company will not issue title insurance without your wife's signing. Even though she is not on the deed and it was purchased prior to your marriage, she has a potential claim to the property. Actually, they would issue with this as an exception but no lender or knowledgeable buyer would ever accept that exception. Even if the property was not your homestead, the title insurer would require your wife to sign a non-homestead affidavit at a minimum
So there you go, the property will not close without your wife. From a moral and ethical standpoint, I believe the right thing to do would be to reimburse the buyer their expenses as well as to compensate your agent
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
For those above questioning the required signature of a spouse not on title, of a homestead property in Fl. Yes, you can Buy by yourself all day long, but to Sell you'd have to have the signature of the spouse. Homestead property being the key here.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Wayne Brooks state specific in CA wife would have to sign or sign quit claim deed over to hubby.. regardless.
not sure on the listing agreement if he owes a commish.. I suspect they ratified the contract so commish is owed.
I bet this just blows over its a small claims matter most likely anyways.. but one can sue for performance I did that last year and won.. my first ever but there was substantial dollars involved.
I put up over 30k to pay back tax's and the seller would not sell.. so I sued for performance and won.
Now I had to on the date of closing put all my cash into escrow 100% of purchase price and it was a tidy sum.. and it sat there for 18 months while we went through the court process.. the Judge gave the seller every opportunity to defend but she just went completely dark and lived there 2 years for free.
but I know thats an extreme deal and most folks ( buyers will not go to this level) and or have the ability to do that since they need a loan to buy.. but there is a lot of cash out there so we can't make that assumption that the buyer does not have cash to come to closing on the close date and make a demand. IE force the sale like i did
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Jeremy Brown
Rental Property Investor · Folsom, CA · Member since 2016 · 140 posts · 70 votes
10y
This doesn't seem to be a popular opinion on this thread, but it seems like the selling agent messed up in this transaction as much as the seller. This community is unusually savvy regarding real estate laws and customs, so I'd approach this from what any of us should expect from a typical seller of a home. Should all Florida residents be expected to know the details of homestead laws? I'd argue no. Then, who should be responsible for making sure the home CAN be sold? The first and best opportunity to do some basic screening comes with the selling agent. Having the seller pay everyone else for their expenses and commissions only makes sense if the seller intentionally defrauded everyone else. Otherwise, the so-called real estate professionals ought to be on the hook for allowing this to go so far before someone realized the whole transaction was impossible to complete. This is their job, after all. In this case, it sounds like there was no intent to defraud on the seller's part.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Jeremy Brown good points.. but real estate is so regional.. like in your region Sacramento Placer county etc.. the agent upon opening escrow would have gotten a preliminary title report back from teh title company within 3 to 5 days.. once that is received it would clearly state at the bottom of the report if anyone other than the title owner had an interest they would need to proof themselves up and sign.
so in other parts of the country ( and I find this particularly frustrating) especially attorney closing states.. they will not pull title until way deep into the transactions. ( reason they have to pay an abstractor up front to pull title ) and if the deal fails they don't want to be on the hook for the abstractor fee so you don't find out that you have an issue with title many times very close to closing date and this leads to massive frustrations on the buyers side.. ( at least it has for me in these instances. )
But your correct the listing agent probably should have or did know that the seller was married and should have gone down those thought process's.. usually your in the home during the listing signup but i know now with docusign this may not be the case as much as it used to be.. as RE is moving away from much of the belly to belly aspects we enjoyed in the olden days
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
If the wife KNEW, she might be forced if push comes to shove even though she didn't sign the listing agreement. At the time of signing, maybe she was not aware because she was not on title that her signature is required. That is irrelevant if indeed she knew what was going on and agreed. The best way to rectify this situation is for her to sign. Everyone should think very seriously before they sign any contract. I tell my tenants that we BOTH have legal duties under the contract, not just them. Same thing with buyers and sellers (excluding many of the unlicensed brokers who don't care what they sign because they have no intention of honoring any contract).
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Ben Zimmerman
Rental Property Investor · Raleigh, NC · Member since 2016 · 396 posts · 995 votes
10y
"In sum, a spouse who has a valid homestead claim need not be a title owner to the property to have a claim protecting a beneficial interest they have in the homestead property."
-Jimerson & Cobb, FL real estate lawyers
Homestead laws protect people from having their homes taken from them, even if it's your spouse doing the taking. From what I understand this is slightly different with divorce. In that case the property would remain solely yours as it was non marital property owned before the marriage and she would have no claim to it unless there were upgrades made during the course of the marriage using joint funds, in which case she would have a right to a portion of the value increase created by these upgrades. Or in the case of a property with a mortgage, if the mortgage was paid down over time using joint funds she could claim a portion of that.
This may very well get you out of the sale of the home, however your agent will likely still be owed their fee.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
The deal I just looked at had the soon to be ex-wife living in the property and the husband out of state. He wanted to sell me the property. The attorney I talked to said no-go. I never pursued anything after given that news. FYI, a local title company also stated the same.
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