Has Anyone Had An Experience With Sell House Fast, LLC

Question

Hey BP,

So I am having an issue with this Sell House Fast company based out of Scottsdale, AZ. Here is the gist of what is going on... We put a property under contract in PA, where I am located, and here the seller already signed a contract with Sell House Fast. Their original contract was set to close on 8/26/16 but it never happened. The partner or rep for Sell House Fast that was dealing with the property completely screwed them over. He said they were going to personally buy the property and what they did was try and wholesale it. Needless to say they could not procure a buyer and the sellers never heard from the guy again. They actually went to settlement without hearing from the rep and completely wasted their time doing so because no one showed up.

Now we come in to play and put the property under contract but the seller failed to let us know the original contract wasn't set to expire until 9/26. So I reached out to the company and tried to settle the situation. Here they went to county recorder office and filed an addendum to the contract which gives them equitable ownership of the property. I asked if they would be willing to sign off on the contract because they weren't able to close or procure a buyer and he told me he would for a fee!!! This fee of course was 30k!! Now, it is definitely the sellers fault for not reading the whole contract before they signed it because there were some very interested contingencies in it. So what the company did seems legal but at the same time very unethical because it allows them to be paid for not doing any work or procuring a buyer. Here is the clause...

TIME IS OF THE ESSENCE with this agreement. Each contingency contained herein shall be satisfied according to its terms by the closing date or this contract extends to provide time for satisfaction of said contingencies. Each party shall diligently pursue the completion of this transaction. Each warranty made herein survives the closing of this transaction

PROHIBITION: this agreement established a prohibition against transfer, conveyance or encumbrance to the property.

Now I am not a lawyer and neither are my partners, but when we read this we see that this company feels they should be paid despite if they find a buyer or not. They have not diligently pursued the completion of this transaction. It sounds and feels like a scam. Now mind you, the sellers have not heard a word from this company in a month or so which leads me to believe they are scamming them. If anyone has experience with this please reach out. Thanks!

Shawn Connors · Answer

@Wayne Brooks I like how you do business!!

Wayne Brooks · Answer

My attitude, "Screw 'em, sue me if you like".

Nikki Lach · Answer

Yeah I don't think that is legal. But the seller has to file charges and I bet he will go away then. I mean that's proof right there he is not pursuing but leaving a message saying you would like to see how pursuing is going and what kind of information and ground work he has done. Really you can always complain to the BBB . I DON'T EVEN SO BUSSINES UNTIL I READ REVIEWS AND A LIL RESEARCH WILL TELL YOU A GOOD GUT FEELING OR BAD. THAT GUYS A DILDO.

Rachel Calandros · Answer

I feel like I’m reading my story. It was a hard lesson to learn and I feel very sorry for the next person who signs a contract with these people. I’m a single mom with 3 kids and what they did to us was unbelievable. I will never sign such an important contract again without an attorney looking it over first. In the end it was my mistake for not doing enough research prior to signing their ridiculous contract. When they say they give you a cash offer for your property they weren’t kidding. That’s all they give you!

Shawn Connors · Answer

@Wayne Brooks Thanks for the info. The addendum is an Affidavit and Memorandum of Agreement. towards the end of the affidavit there is a line that states his commission expires on 3/15/2020 !!!! Unbelievable

Wayne Brooks · Answer

Well then, my position would be, the contract was dead after 08/26. There were no "title issues" that would kick in any 90 days for title issues (BTW, that would have been 90 days Beyond the closing date). Also the "buyer may extend closing date as necessary to complete all paperwork" is vague, self conflicting, undefinable crap and I would assert there is no "paper work" to complete. I'd have my attorney send them a letter letting them know the consequences of improperly clouding a title....these guys are used to dealing with ignorant owners that they can push around and bully. If I were closing with cash, I'd not worry about this "cloud", would close, and let the title insurance exempt this if they wanted to. We still don't know what "addendum" they filed.

Shawn Connors · Answer

Also @Wayne Brooks there is this.

Other Agreements; time being of the essence buyer may extend closing date as necessary to complete all paperwork

Shawn Connors · Answer

Seller sent me this...

Closing: Closing will take place on or before 8/26/16 at Chicago Title. Subject to a 90 day period in which the buyer/seller shall be permitted to clear any title problems.

Contract was signed on 6/26 so they were under the impression that it would be void after 9/26

Wayne Brooks · Answer

If you haven't seen the contract, and what may have extended it, we can't help you.

Shawn Connors · Answer

Thanks @Ren Bidwell . I am all for wholesaling, we do it within our business, but to hold someone up for months and not be able to produce a buyer is absurd. These people have literally not answered the seller in a long time. @Wayne Brooks I do not know what extended it to 9/26, this is what the sellers have told me. I don't know why calling them was not a good idea... I needed to figure out what was going on with the title issue and had to reach out to them to figure it out

Has Anyone Had An Experience With Sell House Fast, LLC

Has Anyone Had An Experience With Sell House Fast, LLC

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