We started escrow on our 1st home June 22, 2010. The seller requested that we sign an addendum that he can withdraw funds from our escrow account on the 18th day, which is tomorrow. He was supposed to start the major work on the house( new pool equipment, solar, resurfacing, fix windows, door knobs, etc) 2 days after we started escrow to be sure that it would be done in time for appraisal and that we could close in 45 days. As of today, NOTHING has been done. This morning our real estate agent (who is representing us and the seller) calls and asks that we sign a cancellation of escrow since the seller is not doing what he is supposed to and has been known to take people’s money and delay work so that they are not able to close on time and have to pay a per diem for every day over the contracted closing date. She did not tell us this before now. We also found out that the seller is the owner of the realty company that she works for! We don’t know what to do…she says that he could reject our contract now since we are cancelling escrow. This whole thing has seemed fishy for a while and we are getting nervous. What should we do?
Thanks for all your answers… and the money in escrow that he can draw into is our earnest deposit, of which we were told that after 18 days becomes his, even if we do not close.
As a Real Estate agent, I have fairly represented buyers and sellers on the same transaction. It can be done properly. In this case, it appears she had more allegiance to her boss than you. Was the boss – agent situation disclosed to you up front and in writing? That is major!
My personal standards would not let me represent an unethical seller or work for an unethical employer.
How much do you want this particular house? If you believe this is the only house for you, contact a Real Estate attorney NOW. Tread carefully with this seller. You have been warned! Have the attorney or the agent draft an addendum that removes the addendum that allows the seller to withdraw money at any time. This will give the seller time to do what he said he would and remove his the incentive for non performance. The addendum should also include time frames for performance and penalties on the seller
If you think you can find another house that will work, sign the offered cancellation and be happy you finally got the warning and the representation. I would also change agents. There are many good ones. Ask friends and family for references and interview more than one. Be wary of online agent referrals. The agents pay for those leads. Few really good agents have to do that. I can also give you a referral to a good agent in your area if you can not find one through your network.
Best of success on your search. Home ownership is very rewarding in many ways.
Dennis Smith, Taylor Place Real Estate DRE#00476662
This sounds really bad. First of all, you should NEVER use the seller’s listing agent as your buyer’s agent. Secondly, why are YOU funding repairs (from your "escrow account") on a house that you do not yet own and may never own? That is NOT the way things should be done. You are being swindled.
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Definately something fishy going on here, I would cancel the escrow. There are too many houses on the market right now to deal with this nonsense.
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If you have the opportunity to cancel and have your deposit refunded, do it! However it can’t be canceled untlaterally. Both buyer and seller must sign the release of escrow and contract cancellation. Whether or not the seller is is on the up and up isn’t the issue. The seller should not have access to the deposit until closing. If for whatever reason the sale doesn’t close due to the fault of the seller, it could be very difficult to get your deposit back.
realtor.sailor
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I’m a Realtor
I believe that there must be disclosure if the seller is an owner or broker. You might call the local board of realtors (assuming this agency is a member) and ask them for advice. I don’t like it either.
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It seems to me that you are not being well represented by your broker here. If I were you, I would contact a local real estate attorney and have him or her review these items immediately. Not tomorrow…today.
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As a Real Estate agent, I have fairly represented buyers and sellers on the same transaction. It can be done properly. In this case, it appears she had more allegiance to her boss than you. Was the boss – agent situation disclosed to you up front and in writing? That is major!
My personal standards would not let me represent an unethical seller or work for an unethical employer.
How much do you want this particular house? If you believe this is the only house for you, contact a Real Estate attorney NOW. Tread carefully with this seller. You have been warned! Have the attorney or the agent draft an addendum that removes the addendum that allows the seller to withdraw money at any time. This will give the seller time to do what he said he would and remove his the incentive for non performance. The addendum should also include time frames for performance and penalties on the seller
If you think you can find another house that will work, sign the offered cancellation and be happy you finally got the warning and the representation. I would also change agents. There are many good ones. Ask friends and family for references and interview more than one. Be wary of online agent referrals. The agents pay for those leads. Few really good agents have to do that. I can also give you a referral to a good agent in your area if you can not find one through your network.
Best of success on your search. Home ownership is very rewarding in many ways.
Dennis Smith, Taylor Place Real Estate DRE#00476662
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Get a real estate attorney and get out of this now! Do not ever pay for repairs on a house you do not own yet!
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I agree that a dual agency situation can be done fairly and justly. However, this does not seem to be the case in this particular situation. You agent should be able to explain this entire crazy situation in a way you can understand so that you know exactly what you’re signing. I’d recommend hiring a lawyer and asking him/her to look into this before it goes much further. Even if nothing is really going wrong, it’s better to be safe than sorry. Your agent should be your advocate but if you suspect that she is no longer acting in your best interest, you need to involve someone who will. Do it sooner rather than later.
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Akron Area Realtor