Legal Question in Real Estate Law in California
Signature forged on real estate offer
I found a condo for sale, brought my agent to it and said I was interested in it. Without telling me, my agent spoke with the seller's agent. Together they decided what amount the seller would accept. My agent then submitted a formal offer for that amount and forged my signature. He told me about it later that night. 2 days later I did sign a minor change on a counter offer. Escrow was set at 75 days. My loan from 2 companies was denied within 18 days, cancelling escrow. Now the seller's agent is trying to keep my escrow deposit claiming (1) the property was kept off the market for over 1 month, when in fact it was only 18 days out of a 75 day escrow; (2) I prevented them from accepting another offer from someone who could get a loan approved, when in fact my agent and the seller's agent agreeded to a price, signed my name to it and accepted it, then informed me later that night. I never at any time gave my agent authority to sign my name.
2 Answers from Attorneys
Re: Signature forged on real estate offer
I generally agree with Mr. Johnson, especially that you ratified your
agent's signature by going forward with knowledge.
However, the issue of whether the Seller keeps the deposit should be governed
by the purchase agreement. If getting loan approval was a condition, you were not
in breach of the contract, and the Seller's damages are not your liability, unless the
agreement says that the deposit is forfeited whenever you do not go forward. Simply
saying that the deposit is forfeited upon breach is not enough, because if you had a proper condition,
you were not in breach.
Re: Signature forged on real estate offer
Although you did not authorize your agent to sign your name to the purchase offer, you ratified his conduct when you signed the counter offer agreement.
Your agent should have protected your interests by making the sale dependent upon your obtaining satisfactory financing for the purchase. If he failed to protect you in this manner, he is liable for your damages. Tell him you want your deposit back. If that doesn't get your money, file a complalint with Department of Real Estate. The DRE has a website. You can get a complaint form from the DRE web site.
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