Legal Question in Real Estate Law in Oregon

Problem with multiple signees on a mortgage

Three parties signed on to a mortgage agreement in order to receive approval of the loan. A decision was made three years later to sell the property, with one person serving as an agent for the other two, both of whom provided verbal agreements that the sale could go forward. After an offer and counter-offer were forwarded and accepted, one of the three signees then refused to sign the escrow agreement, or any other documents that would allow the sale to proceed. One and only one person has decided to refuse to sell; the other two want to sell. Given this situation, can the two persons wishing to sell claim they acted in good faith and ask that any lawsuit be directed at the person refusing to sign, who has given, again, verbal agreement that s/he would be assume responsibility for the property? In the short term, does signing the escrow agreement represent an intention to sell and should that document be signed by the two wishing for the sale to go foward?


Asked on 10/11/02, 11:05 pm

1 Answer from Attorneys
Susan Burns Law Office of Susan Ford Burns

Re: Problem with multiple signees on a mortgage

I suspect that your problem is that not only are the three signees on the mortgage, but they are also on the deed to the property. When there are three owners of a property, it takes all three to agree to sell it. In a situation such as this, where apparently there was an agreement to have one party deal with the sale, that person should have obtained specific powers of attorney from the other two, giving that person the right and power to sell the property without the others' signatures.

Since that did not happen here, all three of you are subject to suit. The two who want to sell can certainly sign the closing papers, but that will not transfer the house to the new buyers.

You need to consult with an attorney promptly so actions can be taken to protect your position. Our office handles real estate disputes regularly and would be happy to meet with you.

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Answered on 10/14/02, 11:06 am


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