Broker misrepresented his client was an all cash offer.

Asked by Amv8399, Chicago, IL Fri Apr 26, 2013

I was under contract to sell my condo. Contract was signed April 12th and was an all cash offer, contingent on a April 29th closing so the woman could be in by May 1st. $1000 was rec'd April 12th and $6500 was due April 22nd. I was advised it would be mailed. Buyer's broker scheduled a time to bring a painter and had me reserve the condo's freight elevator for buyer's move on the 30th. I MOVED out of the condo yesterday (April 25th). Buyer and agent knew I was moving out this day, they were coming that evening after my move out with her painter. My attorney got an email from buyer's attorney late on the 25th to inform me the deal was off because the woman's boyfriend would no longer fund the purchase of the condo (I was never told the source of funds was some one other than the woman prior to this). What steps can I take against the broker for misrepresenting his client's ability to close all cash?

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14
Scott Godzyk, Agent, Manchester, NH
Sat Apr 27, 2013
YOUR Listing Agent should have required proof of funds BEFORE even accepting an offer. The buyer broker may or may not even know the source of funds. The seller should never move out until the closing is confirmed. There should not have been any contingincies on an all cash closing. At this point where is your listing agent or did you try to sell this yourself? You should speak to your attorney about any recourse you have.
1 vote
Bill Altier, Agent, Chicago, IL
Sat Apr 27, 2013
1 Step & 4 "next times.":

1). Seek legal advice from your lawyer.
2). Always require proof of funds.
3). Require more non-refundable earnest money to be held by your lawyer.
4). Get all contingencies satisfied or waived.
5). Close a funded transaction before exposing yourself to risks.
1 vote
JIM Michaels, Agent, Chicago, IL
Mon Apr 29, 2013
You will need to call your lawyer on this question
0 votes
Jeff Nobleza, Agent, Chicago, IL
Sun Apr 28, 2013
Aside from everything listed below, I feel that the buyer's broker may have been duped too. You probably should be directing your energies on going after the buyer, not the broker.
0 votes
Mark Malave, Agent, Chicago, IL
Sun Apr 28, 2013
This is a legal question. Realtors do not have a license to practice law, so you will need to talk to your attorney. Good luck!
0 votes
Matt Laricy, Agent, Chicago, IL
Sat Apr 27, 2013
If attorney review was over, you should be able to keep the earnest money. You need to check with your attorney as soon as possible.
0 votes
Philip Sencer, Agent, Chicago, IL
Sat Apr 27, 2013
You need to read the contract to see waht it says as to when and how a contract can be voided. Was the A/I over in time or was it extended? You should not have moved out until all the contingencies were completed. The agent for the buyer represents the buyer not you. You need to speak with your attorney to see if what they did was legal based on the contract. If it was then you might have assumed; things that should not have been assumed.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Sat Apr 27, 2013
Amv,
There are so very many red flags waving in the scenerio you describe that it's hard to know where to begin. Who ever was advising you should be fired. Without proper representation, sellers and buyer can find themselves in a real mess.

Without seeing the pruchase contract, all comments are just guesses. You mention YOUR ATTORNEY received an email. IT is YOUR attorney who should be advising you regarding this matter.

As Al Dobbs mentioned, the story is not over yet. If the buyer still has interest in your condo, you should pursue alternatives with Al. But you must do so QUICKLY.

Best of Success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, Fl
727.420.4041
http://RealEstateMadeEZ.us
0 votes
Bill J Delig…, Agent, Naperville, IL
Sat Apr 27, 2013
Talk to your attorney and realtor about this. Was it truly a cash offer or was the buyer borrowing money from a 3rd party source?
0 votes
Josh Barnett, Agent, Chandler, OK
Sat Apr 27, 2013
Go over this with your attorney as they will be the most qualified to provide counsel for resolutions involved in this transaction.
0 votes
Jose Hernand…, Agent, Chicago, IL
Fri Apr 26, 2013
Where's your attorney in all this? What are the terms of the contract in case of default? Get a second opinion from a different attorney.

Good luck.
0 votes
Marina James,…, Agent, Chicago, IL
Fri Apr 26, 2013
The following is not a legal advice: Have you received the proof of funds with the initial cash offer? Check the text in the contract. - Does the contract specify remedies in case of default? In case like this you can usually keep the earnest money and look for a new buyer, or inform the buyer of your intent to file a suit for specific performance. You hired an attorney - Consult them!
0 votes
Alvin Dobbs, Agent, Waukegan, IL
Fri Apr 26, 2013
Can you send me the address; and details about the offer? Depending on the details --this deal maybe able to be saved and you will not have to worry about what to do with the Broker.
0 votes
Santiago Ken…, Agent, Chicago, IL
Fri Apr 26, 2013
Why if is cash a contingency in april 29 ?
0 votes
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