Home Buying in 02767>Question Details

Kevin, Home Buyer in Orange County, CA

How do I cancel an Option Agreement when my agent says he was never my agent and the seller's have gone into hiding (with my $15000 option?

Asked by Kevin, Orange County, CA Tue Feb 8, 2011

deposit) Moved in a 8 wks ago and found water damage - not disclosed. Saw an attorney and he pointed out our contracts are not complete and not executed correctly. Sellers have not performed due to missing disclosures called for in the contract which give us 5 days to cancel after receiving them. I pointed this out to our “agent” who was also the seller’s agent, and he has now “quit” - he claims he was never a party to the entire transaction. His name is all over the contracts, we have multiple emails and letters from him, and records of phone calls. Our attorney said even if agent did not sign the contracts he is our agent by “implied agency” just by his acts and setting up the deal. The sellers have gone to ground. Since the "agent" disappeared, we served a notice to perform to the sellers via certified mail and they refused to sign for it. All parties are refusing all contact with us. They have our $15000 deposit and we can’t even get someone to cancel contract for non-performance!

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Scott A. Nelson’s answer
You need to talk to your own attorney ASAP. Either the lender's attorney you hired for yourself or a private real estate attorney to represent your own interests. Typically the lenders attorney is also in line with your interests but in a case like this there may be a difference in interests. Take any documents you've signed, any correspondences & any documents handed to you so far with the agent/broker/seller/attorney's and have everything reviewed by a qualified real estate attorney to review your options. Here in Massachusetts, I've never heard of a buyer "taking off with" a deposit without the buyer having signed legal documents allowing them to.

This is why you need legal representation to review what documents you have and what your legal options are. Check back with us to let us know how you made out, it's informative for others who read these posts,

Good luck with your efforts,
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Tue Feb 8, 2011
Talk to the agent's broker and a good real estate attorney. There are ways of perfecting service even if the seller's won't sign for the mail. I am surprised the option money was given to the seller before the contract and addenda were properly executed.
Hope it works out for you.
0 votes Thank Flag Link Tue Feb 8, 2011
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