Home Buying in Sarasota>Question Details

Judy Weber, Real Estate Pro in Siesta Key, FL

I have a retired couple as clients who put a 10k deposit on new construction with Medallion Homes, after being pre-approved by their personal lender

Asked by Judy Weber, Siesta Key, FL Fri Mar 5, 2010

and Medallion Homes lender, the loan was denied in underwriting. Medallion Homes refuses to return any of the deposit, - even though they have not even broken ground on the home. I feel as though my clients didn't do anything but follow those they trusted in and are now out 10k. Any suggestions?

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9
Judy, Read the contract that your clients signed. Typically new construction contracts are not FAR BAR documents, but rather documents prepared by the builder's lawyers. What you describe is not at all unusual in the 55+ community world. They pretty typically do not have financing contingencies.

TO ANYONE WHO HAPPENS ON THIS POST: If someone puts a non-standard contract in front of you, then read the whole thing before you sign it and if there is something you don't understand then get independent advice to explain it to you.
2 votes Thank Flag Link Fri Mar 5, 2010
Judy, did you talk with your broker about this too?
0 votes Thank Flag Link Sat Mar 6, 2010
Judy:

Thanks for giving us the heads up on Medallion.

I would NOT contact the Herald Tribune, as they've gone out of their way to paint Realtors in an unflattering light no matter what story they cover about our real estate market. I would suggest using your social marketing tools to get the story out and let people know about this company. In fact, I'll be Twittering about this very soon.

I definitely will steer clear of Medallion if at all possible with future clients. Good luck with your clients, I hate to see people treated that way.

Best regards,
David Barr, Broker Associate
Coldwell Banker
941-586-8533 cell
david@davidbarrhomes.com
0 votes Thank Flag Link Fri Mar 5, 2010
Hi Judy,

I certainly would call the Attorney General and in addition I would bring it to the attention of the Sarasota Herald Tribune.

Perhaps you can report back the outcome of this as it would be helpful for all real estate professionals.

Wishing you and your buyers the best and I will remember Medaillon from now on. Bad news travels fast :)
0 votes Thank Flag Link Fri Mar 5, 2010
Thumbs up to Mark, I started to say the same thing.

I should have - my error. Judy, your clients - make sure they are taken care of and doing the
correct thing.

However, builders can not strong arm, write contracts that only favor them, which is why I suggested Attorney General -

Normally, I give builders a Far Bar - they scream holler and complain, I just tell them I am but a simple
Realtor and can not understand the docs their Lawyers make, then I tell them if they don't like what the Florida Bar comes up with - client and I move on. They find a way most always, and if they insist, I get client a Lawyer, then the fun starts.

John
0 votes Thank Flag Link Fri Mar 5, 2010
Judy,

Call Attorney General of Florida

http://myfloridalegal.com/
Bill is a bull dog!!!

John
0 votes Thank Flag Link Fri Mar 5, 2010
Hi Judy,

Was there a financing contingency in the contract? If there was then they should be able to receive their deposit back. I would consult with a good real estate attorney. If you need a referral I have several I could recommend. I try to keep things local and have excellent references for mortgage brokers as well. Perhaps they need to explore someone else.

Good luck,
Terri

Teresa M. Fellows
Broker/Associate
Waterside Realty LLC
941-350-4297
tmf4257@mac.com
http://www.floridawestproperties.com
0 votes Thank Flag Link Fri Mar 5, 2010
Look at the mortgage clause of the agreement of sale and see what it says.

If they are denied, they can get their back usually.

If they still refuse, tell them that the clients will file a complaint with the state, prepare a lis pendants, etc. You have to make them blink.
Web Reference: http://fredglick.com
0 votes Thank Flag Link Fri Mar 5, 2010
Didn't you write a finance clause into the contract?
If you did, they're contructually obligated to return the funds.
Also, your clients can't be forced to finance with the builders lender. Give me a call, I own a mortgage brokerage, let me look over their credit/income and see if i can get them a loan with a different lender. That way they won't need to get the deposit back.

Andrew Ollick
Amerivest Realty
Faith Home Loans
1-800-801-6080
239-443-5400
239-206-4500
eo@oceanhomesrealty.com
skype: napleshomes
0 votes Thank Flag Link Fri Mar 5, 2010
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