Legal Question in Real Estate Law in Massachusetts
Real Estate Sale
I was in the process of selling my house. Purchase and sales agreement was signed, buyer put a deposit down. On the day of closing the buyer , their lawyer and their real estate agent and my lawyer who had power of attorney. They were all seated and the real estate agent made an annoucement stating the finance company notified them 20 minutes ago and would not come up with $12,000 dollars. At this point the lawyer called me and told me the story. I asked if the $12000 WAS nagosable. My lawyer said no. Now I have to make up my mind whether to take the deal or back out and take the $5000 deposit. My lawyer also found out the buyer was an agent who did not reveal that he was an agent. My lawyer said there is no way they should have went to the table under those conditions. I would like to know if there was anything illegal, not ethical, can I do anything about this or did I just get scammed. I ended up making the deal only because or the poor market but I would at least like to get some satisfaction? Please advise.
Thanks
2 Answers from Attorneys
Re: Real Estate Sale
First, how much is the brokerage on the home? If you are going to take a bath then the buyer's broker should contribute something to the $12,000, in fact both should. Brokers should not do this sort of thing.
You can also file a complaint with the real estate board.
A second alternative is to take a $12,000 second mortgage, I assume the $12,000 is a home equity or something like that.
Ultimately, it is a business judgment and personally, I would take the $5,000 and list again, but that is me. You need to know your finanancial situation and decide what is in your best interest.
Good Luck.
Re: Real Estate Sale
You should have known this before.
If there was a conflict of interest, it should have been disclosed.
As a practical matter, I would take the deposit back, and not sign any release or waiver. I would also contact the finance company and get the true information, to find out what happened, why and when the decision was made.