Gave emd money want it back

Member since 2022 · 25 posts · 3 votes

I gave my end money to an auction site. Found out the house isn’t worth what I bidded for. What my emd money back. Any help?

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Wayne Brooks

Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes

You typically don’t get your end back because you changed your mind.

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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
I already have a lawyer on retainer.
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Matt Devincenzo
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
4y
Quote from @Alicia Ayers:

I already have a lawyer on retainer.

Then you should call him and stop asking people on the internet about a contract we haven't seen.
Also as far as the signature...your intent and your grandmother's was to sign and bid. That legally is worth something, so even if you goofed by mistake the intent demonstrates that you entered the contract and likely will be losing your EMD. So far everyone keeps telling you that and you don't seem to want to accept that reality.
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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
Quote from @Matt Devincenzo:

Quote from @Alicia Ayers:

I already have a lawyer on retainer.

Then you should call him and stop asking people on the internet about a contract we haven't seen.
Also as far as the signature...your intent and your grandmother's was to sign and bid. That legally is worth something, so even if you goofed by mistake the intent demonstrates that you entered the contract and likely will be losing your EMD. So far everyone keeps telling you that and you don't seem to want to accept that reality.

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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
Lolol I’m just replying dude. I got my answer at 9 am today. Thanks for your input though!
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Tim Deimer
Rental Property Investor · Member since 2021 · 29 posts · 34 votes
4y
One point that seems to be lost from my first post, (the long-winded one) is while you're trying to get your money back, I'd also be trying to figure out how I could make it work. I have to believe this forum is littered with people who think that way. I once bought a small, vacant mobile home park and found out later that the village had all but outlawed mobile homes, and nobody had ever had the water billing shut off and I was going to be billed around $160 a month. They only contacted me because they were trying to figure out where to send the bill because it was due in 3 days! And on it went.....I dreaded getting a phone call from the 906 area code because I don't believe they've ever heard of good news. I still figured out how to make money on that property.
It's been a long time since I lost interest in auctions but I never bid on a property that I didn't have at least 2 ideas for what I might do with it. Your first (or likely only) idea isn't working, see if you can figure out how to get some cash flow out of it and save it. Get the money back or lose it don't have to be the only choices you have. Look up the story of how 1-800-flowers.com was started, that's the story I think of often in these situations.
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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
Quote from @Tim Deimer:

One point that seems to be lost from my first post, (the long-winded one) is while you're trying to get your money back, I'd also be trying to figure out how I could make it work. I have to believe this forum is littered with people who think that way. I once bought a small, vacant mobile home park and found out later that the village had all but outlawed mobile homes, and nobody had ever had the water billing shut off and I was going to be billed around $160 a month. They only contacted me because they were trying to figure out where to send the bill because it was due in 3 days! And on it went.....I dreaded getting a phone call from the 906 area code because I don't believe they've ever heard of good news. I still figured out how to make money on that property.
It's been a long time since I lost interest in auctions but I never bid on a property that I didn't have at least 2 ideas for what I might do with it. Your first (or likely only) idea isn't working, see if you can figure out how to get some cash flow out of it and save it. Get the money back or lose it don't have to be the only choices you have. Look up the story of how 1-800-flowers.com was started, that's the story I think of often in these situations.

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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
Thank you so much for that Tim. That’s what I actually did. Decided to keep it and figure it out. Which I did. Can’t run when the going gets tough! You’ll never win that way.
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Tim Deimer
Rental Property Investor · Member since 2021 · 29 posts · 34 votes
4y
Glad to hear that, good luck! If it was easy, we'd all be billionaire super-models!
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Alicia Ayers:

How could a contract be binding and enforced if it was improperly signed?

At least two different ways in this scenario. The first is by making the deposit and signing the agreement, you became the principal buyer. The second is you had the apparent authority to bind the corporate buyer.
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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
After speaking with my lawyer this contract would not be binding. To go through with the deal a new contract has to be signed by my grandmother. Thanks for the discussion though!
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
4y
@Alicia Ayers if you have a lawyer on retainer why are you asking the internet?
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
4y
The "contract" as written may not be valid for settlement purposes (name(s) on deed matching contract) but the registration, bid and deposit make that irrelevant in terms of enforceability. The bidder entered into a contract by registering and being the high bidder.

Can you imagine if auctioneers had to review corporate docs, llc docs, partnership agreements, jv docs and resolutions to confirm capacity/authority at registration. Not happening.
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Robert Jones
Member since 2019 · 4 posts · 0 votes
4y
@Alicia Ayers I still pretty new with this but I thought auctions only took full payments up front?
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Ryan Dallavia
Real Estate Broker · Buffalo, NY · Member since 2019 · 11 posts · 10 votes
4y
Depends on the terms of your offer. If it was contingent on something possibly. But typically if you put EMD down there is no contingencies remaining and it will be difficult to get it back.
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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
Quote from @Tom Gimer:

The "contract" as written may not be valid for settlement purposes (name(s) on deed matching contract) but the registration, bid and deposit make that irrelevant in terms of enforceability. The bidder entered into a contract by registering and being the high bidder.

Can you imagine if auctioneers had to review corporate docs, llc docs, partnership agreements, jv docs and resolutions to confirm capacity/authority at registration. Not happening.

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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
That’s true for bids without reserve. If it’s an auction with a reserve the contract is only enforceable once signed.
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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
Quote from @Matthew Irish-Jones:

@Alicia Ayers if you have a lawyer on retainer why are you asking the internet?

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Alicia Ayers
OP
Member since 2022 · 25 posts · 3 votes
4y
At this point I’m only replying. I have my answer already.
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Jonathan R McLaughlin
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
4y
@Alicia Ayers administrative error are not necessarily evidence there was “no meeting of the minds” necessary to invalidate a contract.
You were acting on your grandmas behalf, you meant to buy it, you signed to that effect. Not sure how a court would see all this (maybe your grandma would need to sue you!) But I wouldn’t place all my faith in your “error”
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Alicia Ayers:

That’s true for bids without reserve. If it’s an auction with a reserve the contract is only enforceable once signed.

Wrong. In an auction with reserve where the bidding does not meet the reserve, the auctioneer can consult with the seller (or in most cases has already) and accept the high bid. If the high bid exceeds the reserve it becomes an absolute sale. Whenever the auctioneer says “sold” the property is sold. Good luck with your case.
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