PEOBLEMS WITH CLOSING FIRST FLIP (agent issues)

32 Replies

Originally posted by @Charlie MacPherson :

@Tom Gimer Here in MA, I have not seen those kinds of limitations in contracts. Of course, we do things differently that most states. For example, we're a 2-contract (offer then P&S following due diligence) / attorney closing (no title companies) state.

Heck, we even require wet signatures on closing documents, though e-signatures are recognized for all other real estate related documents, like offers, P&S and addenda.

I reserve the right to be wrong, but I would expect that an aggrieved consumer could successfully sue for damages, including consequential damages under MA Chapter 93A - our Consumer Protection Act.  

I would guess that a claim of failure to use due care on the part of whomever handles the EMD (most likely the seller's agent) would have merit - and here, the plaintiff can be awarded double or triple damages.

Here's a real estate related case in MA where consequential damages were awarded: http://caselaw.findlaw.com/ma-superior-court/15647... So to some extent, that's something for the parties to consider.

Perhaps the word "claim" in regard to E&O was inartful, but that was what I was talking about, but as I said, I'm not an attorney.

It's fun discussing these things until you remember that @Huso Akaratovic may end up with actual damages.

OP is in Virginia and this is not a case involving willful or bad faith conduct. 

Time to spend another night at the Holiday Inn Express my man! ;)

I don’t like the “buyer pays their own closing costs up to 3%”.....you could be paying a boat load above that. Why word it that way? Either you are willing to pay Up To a certain amount, or you are not.

Your agent sucks, but they should no longer be working for free because you are no longer eating the repairs unless You want to in the new contract.

I’d probably dump this buyer unless I had what I thought was a truthful conversation with their lender indicating they could really close.

Alright folks, here is the latest update on what is going on regarding this matter. So, after the lender/buyer made a request to extend the closing. I replied to them advising that the deal will remain the same if they are able to close within the terms of the contract, which was 10 days after the initial scheduled day. And if they were unable to comply, I countered them to pay the full listing price. Once this information was sent out, I haven't heard anything from anybody until today. The last day to comply with the old contract was yesterday by midnight. 

I received an email from the listing agent: "She attached a "Release Agreement" releasing both parties from the contract and requesting the EMD to be released to the buyer. Only her signature is singed on this form. Other parties have not signed yet. She indicated in the email that she needs this back ASAP. Now, I am a little skeptical about her since I don't trust her anymore. Is it safe for me to place my signature on this document before the other parties sign it? Also, is it normal that she is generating this release agreement and not the buyers agent, since the buyers agent was the one that created the contract in the first place? Can someone please clarify this for me?

I replied to her email stating the following" I will sign this document and return it tomorrow once my attorney looks at it. Also, can you prepare a document that releases me from further listings associations/ties with your company" ? 

She replied the following, which was mind blowing for me: "No document needed to release you from association with my company. I would not deal with a stupid jerk like you!!! You are a waste of time".

Her behavior and demeanor is shocking to me. What can be done regarding this type of recklessness and aggressive behavior??

The only reason why I wanted to back out of this deal is because I did not trust her. And since this was my first time selling a property, I just did no want to get myself involved in any other drama or potential legal problems. She is the mere reason why this deal did not move forward.  Please help. Should I go legally after her and is it worth it? 

An addendum seeking to cancel the contract should be generated and Signed by the buyers, Not you....again you could sign something and they may or may not sign, or sign ten minutes before the scheduled closing.

Until the buyer sends you an executed cancelation form, and you sign it, you are still under your current contract along with all of it’s conditions and timelines (ie for the buyer canceling to protect their EM).

@Wayne Brooks so, how do I handle this since my listing agent is being unreasonable. You’re suggesting I wait for them to sign the form first and then place my signature on it. 

Yes.

Alright folks, here is a final update. I was finally released from this contract that has caused me a lot of stress.  I can breathe with an ease now. Still trying to figure out how i should proceed with handling the listing agent. Has anyone had any similar situations and what was the outcome?

Thanks everyone for the assistance. 

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