Legal Question in Real Estate Law in Virginia
Real estate agent and Client's agreement
I signed a written agency agreement. The agent introduced me to a seller which I signed a contract to purchase a condominium in July, 2001.I appplied for a loan through a mortgage broker that was recommended by the seller and my agent. I supplied all documents requested for the loan. My contract had a closing date of September 25,2001. My agent telephoned me to tell me that the closing date had been changed to October 15,2001. After October 15,2001 had passed, I wrote a letter to the mortgage broker, asking if the loan had been approved. The mortgage broker never responed to my letter, however, I received a call from my agent,informing me that my loan had been approved. In November,2001 I received a letter from the seller stating that the contract was null and void because I failed to obtain a loan. In short I had defaulted. Did my agent mislead me when he told me that I had a loan and advised me to turn on utilities for an inspection? I lost the contract because he gave me bad information. What options do I have regarding the agent responsibility to me?
2 Answers from Attorneys
Re: Real estate agent and Client's agreement
In NY, an agent has a fiduciary duty only toward the seller unless he or she is retained by the buyer as the buyer's agent. From your letter, you don't mention if you had an attorney. In NY, you would be advised by an attorney to either cancel the contract or obtain an extension if you had not received a loan commitment by the date stated in the contract.
Real estate agent may have owed you duty. You may still be able to get the cond
The agency agreement you signed with the real estate agent may show some fiduciary responsibility on the agent's part.
If the seller and agent were working together you may be able to bring in the seller too.
If you signed a standard contract, as opposed to a sponser's, contract you may still have a chance to get the condo if you want. Take all your documents to an attorney for a consultation. If you had an attorney make sure you get copies of all correspondence.
A regular contract of sale is not cancelled if you do not get a mortgage. Only your right for time to get a mortgage is cancelled. Did you get a copy of the approval for the mortgage (commitment)?
Also did you receive back your deposit?
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