Legal Question in Real Estate Law in Florida

Short Sale/ Property owned by bank
My son found a house that was listed for approx. $149,900. An ex-neighbor who happens to be a long time real estate agent took him to look at the home. He liked it and the next day made an offer of $145.000. 6 weeks or more went by and real estate company selling the home for the bank said they were sending out a person for an apprasal. There was a closing date and now it since has expired and the bank
now wants $190,000 because there was at least $8,000 in back taxes owed.

They will except his counter offer of $155,000 if he pays the $8,000 and closing costs.

Whoops! this was never disclosed at any time. No foot notes of any kind that there might be added fees.

Can a real estate company list a house before the house was appraised and then raise the price?

Seems to me the real estate company dropped the ball here and should eat the difference but I bet they won't. Seems as if everyone I talk to claims they can do this.

Seems like Fraud to me.

Thanks

Asked on 4/15/08, 1:47 pm

2 Answers from Attorneys

Scott R. Jay Law Offices of Scott R. Jay

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Re: Short Sale/ Property owned by bank

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

You never advised whether or not there was a contract signed by and between the parties. Until there is a formal contract signed, any discussions are only that. Real estate transactions are governed by the terms of a written contract. Any oral agreement for the purchase or sale of real estate is not binding pursuant to the Statute of Frauds.

It sounds like the property in question is part of the Seller's REO (Real Estate Owned) which may have been acquired as a result of a foreclosure. Banks often place a property on the market and then see what offers might be received. They are not obligated to sell a property unless and until they sign a contract.

Appraisals are not generally obtained before a property is listed on the market. If you still feel you have been wronged, then you need to consult a qualified real estate attorney.

Scott R. Jay, Esq.

Answered on 4/15/08, 8:44 pm

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