Legal Question in Real Estate Law in Arizona

Home being sold in auction while we were just about to close escrow

We have been i n escrow for three weeks on a shortsale home. We are going to the title company tomorrow to sign all the documents and we just recieved an email from the selling agent stating that his broker sold the home in auction yesterday. Is that legal can they do that or do we have to go to court on this?


Asked on 4/21/09, 4:32 pm

2 Answers from Attorneys
Brian Blum Blum Law Office, PLC

Re: Home being sold in auction while we were just about to close escrow

It's impossible to say without seeing the contract.

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Answered on 4/21/09, 4:42 pm
Donald Scher Donald T. Scher & Associates, P.C.

Re: Home being sold in auction while we were just about to close escrow

You have not stated if you are the buyer in this transaction or the seller. Assuming that you are the buyer, did you have a signed purchase contract (which is normally required in order to open an escrow)? If you had a signed purchase contract and put earnest money in escrow, then the broker knew of your legal interest in the home by virtue of the purchase contract. There is not enough information to determine if you have a claim against the purchaser at auction of the house. More likely, you have a claim against the broker for breach of his legal duties to you.

I would have to review the documents and the facts before a more definitive analysis can be made. Also, it may be necessary to go to court to get justice for you, particularly if the parties involved do not admit responsibility and work with you to resolve your claims informally.

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Answered on 4/21/09, 5:27 pm


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