our agent unilaterally rescinded the contract withour our consent and requested to the escrow company to cancel the escrow. what i should do the next?

Asked by Homebuyer2010, Los Angeles, CA Mon Dec 20, 2010

we have a purchase property which is in escrow opening proceeding, this is a short sale property. Since we signed agreement by both the buyer(us) and seller. But now, he decieded and via email to the escrow company for the cancellantion without our consent after I asked him to see any documetation for this property. He was rude and vituperated on the phone when I called him asking the reason, and he told me he is going to sell to the other buyer. I think he must be reported according his unprofessional activities.

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16
Ron Escobar -…, Agent, Beverly Hills, CA
Mon Dec 20, 2010
I do a lot of short sales and can tell you they are very difficult because there are many parties involved.
In this case, it sounds like your relationship with this agent/broker is not very strong and you could be better off, walking away and buying another property through another agent. There are lots of them on the market right now... I would also say it is more important for you to evaluate the agent/broker you chose to work with upfront, so that you have complete and total confidence in their abilities and fiduciary responsibility towards you.
The client comes first...
Again, I would suggest that you don't try to make someone be something they are not or do something they do not want to do... There are plenty of deals out there... of course you can litigate and pursue all kinds of avenues, but do you really want to spend your time doing that?
Best of luck!

RonE
Web Reference:  http://shortsalecentral.org
1 vote
Terri Vellios, Agent, Campbell, CA
Tue Dec 28, 2010
I'm so sorry you are having this bad experience.

You have an agency with your agent who has a fiduciary duty to the seller and since you both must agree to dual agency, you as well. With that us agents are not to give advice when you have representation. Nor can we give legal advice. It appears you need both.

Regarding what can be done, is no an agent nor a Broker can unilaterally rescind an contract or escrow. Both Buyer and Seller must agree. The terms of this is in your contract and any addenda. Your options are to talk with the agent's broker and a real estate attorney. There is also the local MLS Board and the California Association of Realtors (if your agent is a Realtor, vs just an agent and/or broker). These resources should guide you to some answers and solutions.

Something to understand, is since you are an FHA buyer you will want to make sure that if you are purchasing a condo that the complex is FHA approved. Also, a lender will need to be able to meet any short sale time frames.

Best of luck to you.
Web Reference:  http://terrivellios.com
0 votes
Neal Grusky, Agent, Los Angeles, CA
Sat Dec 25, 2010
Hi
You must find a new agent. I do not believe this to behavior professional.
You may report the agent if you wish as well.
There are many other agents like myself who will make you our priority
and try to find out what you need, and go out to help you all the way through your
transaction.
Good luck
Neal Grusky
H premiere properites
310 266-1217
0 votes
Madi Covingt…, Agent, Baltimore, MD
Tue Dec 21, 2010
Fire your agent and get one that has your best interest at heart not theirs.
0 votes
Jane Grant, Agent, Aguanga, CA
Tue Dec 21, 2010
Homebuyer: You do have recourse with any real estate transaction. You will need to get involved with the Real Estate Agent's broker and you can of course file complaints with the DRE. But I will say that you have made it difficult for yourselves by including "relatives", who were not party to the transaction. You really need to be communicating with any agent you hire in the future yourself.

And again I would like to stress the importance of having your own agent represent your interests when you are purchasing real estate.

Please read my article about dual agency, (below).
0 votes
Bill Eckler, Agent, Venice, FL
Tue Dec 21, 2010
It's very important to have accurate information as well as a complete understanding of it. Distress property sales(short sales & foreclosures) can be difficult from a number of perspectives. Unless your agent is the listing agent, he/she will have little control over the offer the sellers finally accept. Based on the limited information provided, it sounds as if the sellers decided to accept another offer.

If you have concerns about an agent's conduct or how they handled your transaction, it may be beneficial to arrange for a conversation ith their broker. The broker may be able to help resolve your concerns.

Best wishes,

Bill
0 votes
Homebuyer2010, Home Buyer, Los Angeles, CA
Mon Dec 20, 2010
First of all, thank you all for the helpful answers. The CAR short sale addendum did contain the "Other Offers" clause: "... Seller may continue to market the property despite acceptance of Buyer's offer, and to represent to the Short-Sale Lender any additional offers that are received on the property". I think we are holding the short end of the stick.
We were countered offer twice by the short sale lender and we accepted the lender's second countered price via phone communication with the agent (who is representing both seller and buyer) and he said that the deal must be closed within 30 days. We were going to get an FHA loan but had to settle with a 20% down conventional loan due to the short closing days. The agent asked me to start the loan application which I did immediately.
The seller signed an addendum with the lender's new price 10 days later. We received it 3 days later and signed it. Escrow was opened 12 days after we signed the addendum. We handed the agent a earnest deposit check and were told that we will have the Escrow Instruction by the end of the following week. By Friday's end, we still have no news on Escrow Instructions.
The turn of event started when my spouse asked a very close relative to make a phone call to the RE agent for info on the Escrow (such as Escrow No., Contact person, the branch location…) because both of us could not be on the phone for extended period. After the call, he emailed us the escrow instructions which he received 2 days ago and called me. He called me and said that he will cancel the escrow and did so via email to the Escrow Co. I was dumbfounded and later found out that he didn't like the way he was asked and that was the one and only reason he had given us. According to the relative and there were also other witness, the relative was persistence in getting the info but never rude at all. Both me and my spouse are push-overs.
What really got me is when my spouse called him the next day, he made reference to my relative using derogatory term "low-class woman" (if you hear it in Mandarin, it's very bad), "her questioning was disgusting" and that she is a "nasty woman". He told us to keep "dreaming" if we want to get the property.
I am sorry for the long and winding post and taking much of your time.
I know my wife, who wrote the original post, appeared to be strong, but I can see her cracking inside because she had already envisioned living in the place.
Do you think we have any recourse at all?
0 votes
Jane Grant, Agent, Aguanga, CA
Mon Dec 20, 2010
This sounds like another mishap with a buyer trying to use the listing agent as their agent. There is almost always miscommunication when this happens. Dual agency is legal in California but the listing agent is hired by the seller. Get your own agent to represent your interests.

~~~~~
0 votes
Homebuyer2010, Home Buyer, Los Angeles, CA
Mon Dec 20, 2010
The broker represent both buyer(us) and seller, the escrow is not canceled so far. I checked the escrow company today.
0 votes
Myra Gouger, Agent, Las Vegas, NV
Mon Dec 20, 2010
First read the short sale agreement thoroughly. I can't give you CA advice, but I can tell you that in our short sale agreements, there is such a clause that it can be cancelled if another buyer comes along and offers more money. So, first up, read your paperwork thoroughly to see what you signed. Secondly, stop stressing over it and get your money back. Thirdly find another agent who is completely renmoved from this transaction. Lastly, I would tell you that anyone who treats you that badly doesn't need your business. There are many more homes for sale in CA. Find another agent to help you and choose another comparable property. Until you read your short sale addendum thoroughly, you don't know if he is unprofessional. He may just be going by the wording in the short sale addendum that you signed. Also, check how many days it says that you would be willing to wait for the short sale to complete. You waiting time might be up and you may not have put in another addendum to keep yourself active as the buyer. It sounds like you are working with the listing agent, rather than your own agent. Find a a buyer's agent in the future who knows how to do short sales, if you again get involved with a short sale.
0 votes
Leyhun Tan, , Los Angeles, CA
Mon Dec 20, 2010
First thing to do is to contact with your agent's manager ............then speak with the seller's agent to verify...........................it all has to be in writing.......
0 votes
Suzanne Gla…, Agent, Los Angeles, CA
Mon Dec 20, 2010
Dear Homebuyer 2010,
I am curious to know if the bank has approved the short sale yet?
Also, it sounds like you're being represented by the listing agent, in which case I would IMPLORE you to get your own, exclusive representation for any and all future transactions.
Short sales can be very tricky and unique sometimes, so it's best to consult a real estate attorney.
I have the name of a good one if you'd like; my contact info is below.
SUZANNE (SUZIE) GLASER
LA VILLAGE REALTY
p.310.383.1141 | http://www.LAVillageRealty.com
RealEstateSuz@gmail.com | lic # 01390707
(a division of Power Brokers Int'l | lic # 01520327)
0 votes
Katherine Jo…, Agent, Rancho Cucamonga, CA
Mon Dec 20, 2010
Hello Homebuyer 2010 first of all he and no other real estate professional can cancel a contract without both the buyer and seller sginature. Contact escrow and ask to see the cancellation order. To verify that he has not forged your signatures as well.. Then you need to contact an attorney as this is unethical 1000000%

Good luck
0 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Dec 20, 2010
At this point, it's in your best interest to consult with an attorney who specializes in real estate, he/she can best advise.
0 votes
Richard Schu…, Agent, Los Angeles, CA
Mon Dec 20, 2010
You need to contact an attorney. If you have a contract, he cannot rescind it without your signatures.
0 votes
Heather Paul, Agent, Santa Monica, CA
Mon Dec 20, 2010
Did the seller's agent cancel the escrow or your agent? I need a little more information. The seller's agent must submit all offers to the bank even if the seller chooses are specific offer. I am really sorry for how unprofessional this agent has been to you. By the way, escrow can not be cancelled unless it is cancelled with both the buyer and sellers consents and their is a specific contract form for this. I would contact your agents broker and also the escrow company, ask to speak with their manager so you can attempt to get some remedy. You can also file a claim on this agent at the California Department of Real Estate, http://www.dre.ca.gov

Good luck!
0 votes
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