Buyer Tied Up My Property For 3 Months And Then Defaulted
An investor who found my property through this site, placed a purchase contract on my home with no contingencies. He kept asking for extensions, and I agreed with the condition that he sign a Buyer's Temporary Residential Lease so that he would be responsible for paying the ongoing holding expenses ($80/day). He signed and renewed for another 6 weeks. ( In hindsight, I think he may have been marketing the property behind my back and was hoping to string me along indefinitely.) After holding my property off the market for 3 months, he just up and walks away. Won't return my calls or emails. Doesn't tell me the deal's off or anything. My attorney's chomping at the bit to sue him and his bird-dog buddies to high heaven, but I was wondering if there's a better way to handle a deadbeat buyer. He owes me $4500 and counting.
I assume the "buyer" didn't give you any down money. As you know, $4,500 won't go far once you start paying attorney fees, although it sure would go a long way to getting some feeling of satisfaction.
If this "buyer" and his bird dogs were or are TCI members, I would recommend that you to get in touch with Joel ASAP and provide him with full details, including the names of the people.
Thats just rude! I thought this was a site for information and ideas. Not at site for people to take advantage of a deal or a person. We should all be above that and try to help each other out. [ Edited by ncboater on Date 07/30/2004 ]
overland --
What kind of purchase contract did you use that overlooked the use of a earnest money deposit? Did you open escrow also without any earnest money deposit?
With you having an attorney did the attorney draft up the purchase contract? Did your attorney also approve all those extensions?
I recommend next time using complete purchase contract (the local board of realtors usually sell forms to the public), obtain $1,000 to $2,500 earnest money deposit, continue to show & advertise property, take back-up offers, with extensions obtain reasons & get documentation.
Your "holding" the property off the market was your choice ... show, and take backup offers.
The buyer owing you $4,500 may be a claim at Small Claim Court. Check with your state and county what the limit is.
It is understandable that now the attorney want to "sue" ... again costing you money.
Cheryl Lopez
[ Edited by cheryllopez on Date 07/30/2004 ]
[ Edited by cheryllopez on Date 07/30/2004 ][ Edited by cheryllopez on Date 07/30/2004 ]
overland
1) Small Claims. If you think he will not show up ... then that is great for you. You will "win" by default. You will receive a judgement against him. Then have to attach it to any of his other properties. Then just sit tight so when he wants to sell that other property ... there is your judgement and collecting interest !!
2) Selection of Title Companies. If the title company name, address, escrow officer is not mentioned on the purchase contract ... then you as the seller must "counter" that item and write it down exactly what title company and I like to add the escrow officer which is important. Receive a copy of the earnest money check with the offer. Some buyers even have a problem with writing a check and showing it ... that would be a sign of problems ahead with that type of buyer. Get to know a title company you like to use and always "counter" using that title company so you are protected and know the escrow officer.
Cheryl Lopez
For info of all readers, if a RE Agent or Broker is involved, and he/she takes the EM check, he/she MUST deliver it in just a day or two to the escrow co., and failure to do so is grounds for complaint to RE Commission/Agency.
Regarding real estate agents or brokers are required to deliver check to escrow in "1-2 days" or grounds for complaint.
In California our CAR forms state "3 business days" check delivered to escrow.
So if acceptance on Friday (1st business day), Monday (2nd business day), Tuesday (3rd business day).
Cheryl Lopez