Memorandum & Release of Lien

Allen, TX · Member since 2016 · 15 posts · 26 votes

Help is appreciated on my first wholesale contract. I put a property under contract with a 30 Day Option period. After we signed I could not find a buyer. (I offered about 20k too much) Seller wouldn’t go down. I filed a memorandum at the courthouse. Option period passed and we had no sale. A month late the seller calls to ask why I put a lien on the house and if I’d release it by Friday. I don’t mind doing it but not sure how to. Do I wait for the new buyers title company to reach me or is there a specific form I can print and get it over with? Does it have to be notarized? Where do I send it? She’s also upset that we had a contract and I didn’t come through. My contract specifically said it was Contingent upon further inspection and my approval. Thanks in advance. Angie.

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Ned CareyPro Member

Moderator

Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes

@John Thedford think you have been a little harsh on @Angie A. Yes she has done something unethical, however she was sold a dream and given bad information on what to do to reach it. Yes she should have considered how the memorandum would get released when she recorded it. More importantly she should have dealt with it faster. However I still put much of the blame on the people teaching this stuff.

What idiot told her "And this is something I was told was required to do"? Also Angie was told she could charge a fee for the release! Who is teaching this stuff?

Angie made a mistake and came to us for help how to rectify it. Her mistake was one of ignorance (negligence) not of malice. The smart people here, (John is certainly in that group) should first strive to educate, then if appropriate reprimand.

Regarding how Angie should proceed, clearly her attorney should address this ASAP. However if it were me I would write up a release, this release would reference the original recorded document with liber and folio, have it notarized and record it in the land records.

Angie you should realize that what you have done is a very serious issue. This is certainly a Tort (something you can get sued for) and might possibly be criminal. It sounds like you are hanging around and or listening to the wrong people.

I hope, Angie, you learn from this. There are many lessons here. One which is not obvious is that another wholesaler cannot legally take your deal. It is called "interference with a contract" Another lesson is; you need to KNOW you deal is so good it will easily quickly resell or you need to be in a position to close on the deal yourself.

Regarding how I would handle it if I were the VICTIM, I would move forward with any sale or marketing efforts. This cloud will get dealt with eventually and if it temporarily blocks a sale, that only increases the damages she could claim. At the same time I would talk to TREC and/or to an attorney to file suit against Angie.

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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
Nice underhanded tactics IMO! Bush league as Mindy Jensen calls it.
You know HOW to put a cloud on title but not release it?
PAY A LAWYER...I am sure you will need to develop a relationship with one.
8 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
You file the release the same place you filed the memorandum. It's negligent to have the memorandum form, but not a release form to remove it. Of course she's upset.......you made her think you were actually Buying her house, no matter what escape clauses you put in your contract. This is why wholesalers have a bad rep.
3 Reply
Angie A.
OP
Allen, TX · Member since 2016 · 15 posts · 26 votes
8y
Thanks @John Thedford and @Wayne Brooks for the support! I'm new. This is my first one and in no way was I trying to be malicious or hurt the seller. There were other wholesalers trying to go around me and talking to her so I was trying to protect the deal I had worked on. I'm sure you've made mistakes at one point and reached out to others for help. That's what I'm doing here. And this is something I was told was required to do...after the fact, I'm finding out it's not...No need to be jerks, just a way to guide me would be great. I'm willing to release it at no cost to her, I've heard other wholesalers say I should charge a fee to release it, or have the new buyer compensate me to release it, but I'm not looking to be that guy... I'm just looking for form to sign and get her on her way... Again, I did it because someone said it was just another step in the process..now I know.. but thanks anyway.
6 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
Be careful who you listen to.....especially those saying you should get a fee. Once your contract is expired, any recorded memorandum is causing harm to the seller or buyer, and refusing to remove it would open you up to liability for damages.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
"I've heard other wholesalers say I should charge a fee to release it". This sounds like a guaranteed way to get sued. If the seller saw your post, what if they decided to sue you anyways for FRAUD BY INDUCEMENT?
OK--you drank the koolaid! You want to broker without a license. I get it. Some cannot get licensed due to criminal records.
It sounds like you obtained the contract by FRAUD BY INDUCEMENT. You represented yourself as a buyer when you had NO intention of buying. Isn't there something wrong with that? FRAUD? DECEIT?
Maybe the golden rule should be used: do unto others as you would have them do unto you".
ASK YOURSELF THIS: how would you feel if this was pulled on a loved one..maybe someone in a bind...and they got lied and deceived? DON'T FOLLOW the FRAUDS AND SCAMMERS. They will NEVER be a success.
Would YOU trust someone teaching you to lie? Not me. These FRAUDS call themselves "wholesalers" as if that has some respect. It does sound better than unlicensed broker...but that is exactly what they are doing.
0 Reply
Angie A.
OP
Allen, TX · Member since 2016 · 15 posts · 26 votes
8y
@John Thedford I absolutely want to do right by the seller, I don't have a problem releasing anything, and I don't need to be paid anything to do it, I just wanted to know how it was done so she could be on her way. I was not fraudulent nor did I scam her in anyway. I explained to her what I was doing with the house and our contract was very clear that I has the option to assigning it to another buyer.... so I'd probably not speak if you don't have all the facts.
Sounds like you've got it all figured out and sounds like you've never made a mistake...you're the master of all things real estate, nice!
Anyway, I've contacted a real estate attorney and I'm good...so have a good day.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
@Angie A.
you might want to consider getting an education if you are going to practice real estate...either as a licensee or unlicensed broker. Sure you don't like my post...most unlicensed brokers don't. BTW---TX has new regs for working as an unlicensed broker. If I was the seller and I saw this thread I would sue. By your post you acted in a manner not anticipated or agreed to by a seller. I print out every one of these threads and send them to TREC. They need to see what FRAUDS AND SCAMMERS are doing so they can take appropriate action to protect the public from predators playing games with peoples most valuable asset.
0 Reply
Angie A.
OP
Allen, TX · Member since 2016 · 15 posts · 26 votes
8y
You do you, boo. Sounds like you’re all over the place commenting left and right on everyone’s posts misinforming everyone. And by the way, the new law is regarding disclosures on marketing efforts, which I clearly had in black and white. Theres nothing wrong with wholesaling, you just don’t like it. You have no clue what was I’m my contract so, you’re speaking out of turn. C-ya
2 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
Got an interesting phone call this morning from the VICTIM in this transaction. She found it by googling the OP name. According to the victim the cloud on title has NOT been removed. I encouraged the victim to write TREC. Posts like this are EXACTLY why this unlicensed brokering garbage needs to be more sternly addressed in the statutes like FL has. I also encouraged the VICTIM to hire an attorney and seek damages for this debacle.
2 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
any input from attorneys??
@Tom Gimer
Attorney recs for El Paso Tx area that I can pass on to the owner of the property?
0 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
Let me get this straight...
Wholesaler puts property under contract, without reason or dispute clouds title, fails to close, can't figure out how to remove the cloud, and now is getting ornery.
LOL
Except for it's not funny to be the owner. At least there is a public, written admission that will prove all elements of the owner's case.
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3 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
@Tom Gimer
At the risk of sounding redundaent: FRAUDS AND SCAMMERS
Do you practice in Tx or maybe can refer owner to someone. The property is in El Paso, The victim has informed me that the OP unlicensed broker has emailed or mailed her a release of the memorandum. I do not know if there is a filing fee but believe it is the duty of the OP to file this. I have also encouraged the owner to sue this IDIOT for victimizing them. Thoughts? If you want to contact me off BP you can text me via cell. I have the owners name and number. Thanks.
1 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
@John Thedford No, I do not.
OP should have immediately recorded a proper release and of course should have paid for that recording. If it was emailed it certainly doesn't have the required acknowledgement. Bush-league.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
Uh oh.....sounds like the OP may be inching closer to that liability problem.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
OP has now changed their profile to hide their last name. That doesn't FIX what they have done to an innocent seller. MORE PROOF that these types are FRAUDS AND SCAMMERS, most with no education, and no concern for their VICTIMS.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
Talked to VICTIM again this morning. According to them, angie aranda has NOT filed a release nor provided one that is notarized, etc. Anyone have any ideas/input to help the owner get rid of this person? They truly are a VICTIM of an uneducated unlicensed broker with NO CLUE how to operate. I have encouraged the victim to get legal help. They supposedly have a REAL buyer that wants to proceed. They have stated the OP has gone silent...of course they have seen my comments, etc and changed their profile name but that doesn't fix what they have done to an innocent seller.
@Ned Carey
@Jon Holdman
@Mindy Jensen
@Russell Brazil
1 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y
@John Thedford seems like a local title attorney would be able to fix this pretty easily. I would suggest for @Angie A. to hire one ASAP, as the longer it drags out the more liability there would be.
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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y
@John Thedford think you have been a little harsh on @Angie A. Yes she has done something unethical, however she was sold a dream and given bad information on what to do to reach it. Yes she should have considered how the memorandum would get released when she recorded it. More importantly she should have dealt with it faster. However I still put much of the blame on the people teaching this stuff.
What idiot told her "And this is something I was told was required to do"? Also Angie was told she could charge a fee for the release! Who is teaching this stuff?
Angie made a mistake and came to us for help how to rectify it. Her mistake was one of ignorance (negligence) not of malice. The smart people here, (John is certainly in that group) should first strive to educate, then if appropriate reprimand.
Regarding how Angie should proceed, clearly her attorney should address this ASAP. However if it were me I would write up a release, this release would reference the original recorded document with liber and folio, have it notarized and record it in the land records.
Angie you should realize that what you have done is a very serious issue. This is certainly a Tort (something you can get sued for) and might possibly be criminal. It sounds like you are hanging around and or listening to the wrong people.
I hope, Angie, you learn from this. There are many lessons here. One which is not obvious is that another wholesaler cannot legally take your deal. It is called "interference with a contract" Another lesson is; you need to KNOW you deal is so good it will easily quickly resell or you need to be in a position to close on the deal yourself.
Regarding how I would handle it if I were the VICTIM, I would move forward with any sale or marketing efforts. This cloud will get dealt with eventually and if it temporarily blocks a sale, that only increases the damages she could claim. At the same time I would talk to TREC and/or to an attorney to file suit against Angie.
8 Reply
Ron Flatt
Investor · Hillsboro, TX · Member since 2017 · 358 posts · 245 votes
8y
Ok, folks, she made a mistake, so let that slide, Once is a mistake, twice shows malice.
Now Angie you can file a release on the property in a simple word document, stating the book and page, or document # and the date it was filed. Naming the parties involved, You and the seller. Get it notarized and file it at the county clerk same place that you filed the memorandum.
I am south of you, so not competing. Reach out next time as you proceed, you are welcome to follow me or connect with me. I am no expert, but I have a few rentals, flipped some properties. Most of my properties come through foreclosures or one Realtor I have a good relationship with.
I do have two wholesalers that have contacted me, but they have not had anything I could use at the price.
Real Estate can be a rough teacher, just learn from your mistakes and move on..
6 Reply
Angie A.
OP
Allen, TX · Member since 2016 · 15 posts · 26 votes
8y
@Ned Carey @Ron Flatt
Thanks guys. I appreciate your help, that’s really what I came on this forum to do was ask for help. There’s more to the story but I’m not willing to post anything on here anymore. I thought BiggerPockets was a safe place, I thought it was a place for education and support. I understand if I’m doing something wrong there’s the way to communicate this and assist. Never in my wildest dreams did I think filing a notice of memorandum to the court was “unethical”. I’ve never scammed anyone, those who know me and work with me can attest to my character. I’ve done my part to resolve this, by signing what they sent.
6 Reply
Ron Flatt
Investor · Hillsboro, TX · Member since 2017 · 358 posts · 245 votes
8y
Angie
do not give up. Lots of people on here are here to help.
Some of us have bad days and when we read something it hits us wrong. They are a lot of bad actors out there. So many of us are skepitical of others mistakes. I want to express my apologies for all of us.
Stay positive, keep trying, keep asking questions. Do not leave because some of us took the post wrong. We are people, and people make mistakes, intentional or unintentional.
If you want to grow, stay with Bigger Pockets, keep learning. Again follow me, connect with me and others. Bounce ideas off of us.
Heck, you may even find a pard or two on here. Now it is up to you to decide, but I truly hope you decide to stay and learn and grow.
5 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
OP -- on her admitted first deal -- screwed up big time, went dark, changed username, apparently still hasn't released. All it would have taken was a few minutes of research and and a few dollars to fix the problem... or a handful more to have a professional fix it.
And the advice is Don't give up. Keep at it. We're here for you.
I see.
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1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
Originally posted by @Tom Gimer:

OP -- on her admitted first deal -- screwed up big time, went dark, changed username, apparently still hasn't released. All it would have taken was a few minutes of research and and a few dollars to fix the problem... or a handful more to have a professional fix it.
And the advice is Don't give up. Keep at it. We're here for you.
I see.
and I will continue to speak out against dishonesty and lack of education!
0 Reply
Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
8y
This is a great example to show how wholesalers can actually cause damage to a seller. With all the guru's out there providing a system to wholesale properties, unwitting sellers can be put in a position of not only not have a sale go thru but actually not being able to sell their property as it has a cloud on the title. A system in no way makes up for the lack of knowledge and experience that most new wholesalers have. What if:
Wholesalers(Most) told the truth and said " I have no ability to actually buy the property"
Filing a memorandum- The need for this is so narrow it actually should never be used. Why is it used? Because a wholesaler(most) could never go through the court process and win
Some have suggested suing the OP(inserting wholesaler instead). The reality is .....most are judgement proof
Hopefully the OP will do everything to make this right ASAP and learn from this. Additionally, I hope all new wholesalers stumble on to this thread and do not make the same mistake
@Angie A. Care to name your mentor, guru or course that suggest filing a memorandum and more importantly suggested that you charge them to release it ?
1 Reply
Angie A.
OP
Allen, TX · Member since 2016 · 15 posts · 26 votes
8y
@John Thedford @Tom Gimer @Wayne Brooks
I think you all have made some good suggestions based on your experience and knowledge and provided good insight. In all honesty, if I had any reason to believe my actions were wrong, you think I’d be posting a question like this for all to see? I was asking for help on a first time situation, not looking to be attacked. If this were something I’d practice daily and hurt people, I would probably justify the bullying and harsh remarks.
The sellers are good people. I only tried to protect my deal from other wholesalers who were trying to take my deal. It wasn’t an attempt to hurt the sellers, now I see how it can cause challenges for them. While I’m taken back by your accusations of me being a thief or scammer, I have pretty thick skin and will certainly take note of some of your valid points.
@Ron Flatt Thanks for the encouragement. Definitely a lot of lessons learned for me here.
@Greg H. Yes, I’ve already taken steps to make this right, I don’t have a reason not to. That’s why I asked the question in the first place...I was hoping someone could guide me to where I could find a form so I could take care of it.
And don’t worry, as far as I know, they’re not on Bigger Pockets.
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