Bad Experience w/a Property Management Team located Winter Park (Miami: real estate, renters)

[nixau27]

Hi Everyone! Done with our house hunting trip by now and as previously posted, we decided to rent a SFH in Spring Isle in Avalon Park. Here's what happened: Tuesday around 1130 am we went to a decent looking SFH in Oviedo and liked it. Well, we were leaving the next day and this was a decent home in the school district that we were considering, w/c is Oviedo. We decided after we looked at 2 more SFH that we will put a security deposit for the property to make sure that we can "lock" it in. So, we drove to the property management company and gave our security deposit and paid the fee for the application form. We did not fill out any other forms other than the application form so they can run our credit and we submitted our pay check stubs.

We then drove to Avalon Park and looked at a SFH in Spring Isle. We liked it and for the price, we got a good deal and the school is rated "A" as well. We immediately called the property mgmt company for the house in Oviedo around 3 pm and the lady I spoke with said we can pick up the check in the morning. We went there this am, around 11 am and the supervisor said that they already deposited the check! He even mentioned something abt us being "wishy washy" and that it was Florida's statute that they have to deposit the check for "check fraud". I asked him why they never mentioned that to us in the first place when I called an hour after I gave them the check so why would they rush to deposit it? He said that as soon as it clears in the bank, they will mail us a check. Can you believe that? Any thoughts on this?

[Crane's Rooster]

I'm always suspect of any property application that has a large fee attached. I know background checks are fairly cheap online. At least from this experience you have learned that the property management co is not one you would have wanted to deal with for an entire year and you found out before it was too late. Welcome to Orlando and beat of luck in your new home.

[GregTraub]

I'm not sure you heard "check fraud" right...perhaps they meant they have to wait until your check clears before they can issue a new check back to you. That's just smart as there is RAMPANT check fraud in real estate. Ever heard of a nigerian prince trying to send you lotto winnings, or someone on craigslist want to buy something from you and "accidently" send you a check for more than you were asking...then asking for you to send the difference back to them. Not only does a broker risk losing that money if the check you wrote was bad, but also violating FL laws by issuing a check for funds that are not 100% cleared in their bank.

In any event, there is FL statute (law)that guides exactly how a real estate company must handle funds. I can't quote it off the top of my head but it basically states they must deposit all funds "immediately" which is specifically defined..not sure the specifics but it's either 1 or 2 business days. Violating that statute puts the real estate agent in jeopardy of losing their license and livelyhood for being even a little late or not handling funds properly. The Florida Real Estate Commission does not take such matters lightly.

The good brokers have a system in place to handle these requirements of them, so stopping the deposit of a specific check, when they are handling MANY checks all the time, every day, can be overlooked. And changing a system in place and holding a loose check risks them losing the check or forgetting to deposit it in the time frame needed. A BIG no-no

It sounds like they were just following FL statute. It also sounds like you weren't required to put a deposit down with application? only if you wanted to 100% lock it down. I'm sure it sucks to have to wait 7 days to get the deposit back, but if you weren't 100% sure about that being the house........

[nixau27]

Thanks Crane's Rooster & GregTraub. I was just thinking that since I called them an hour after I handed them the check that they can set it aside and just give it back. I guess it's just old fashion business sense in me. I hope I get a check from them next week, just seems underhanded to me the way it turned out since I called right away. Oh well. Let's see if I get a check back right away or it will take them a few weeks. Other than that, I have a good feeling about the house and the 3 days we spent in Orlando was good. People were nice, friendly and traffic wasn't as bad as DC or NoVa. I'll keep you guys posted as to when I get a check back!

[USMC Fam]

Hi there nixau27,
Was your deposit returned? We have a similar situation with a property management company where we provided a deposit to "lock in" a home in the area you chose but began to receive strong arm calls to sign the lease "within 72 hours" although there were errors with the lease that they did not correct after our requests. We have not received our deposit back, although we have made many requests and now filed a complaint with the BBB. I fear we won't see our deposit returned until we go to small claims court at this point. Hope your situation fared better!

[nixau27]

USMC Fam!!! Wow,,,,,how long ago since you gave them your security deposit? Still haven't received it? I had a bad feeling in my stomach that morning when I came in the property mgmt's office and I was supposed to get my check but the manager said that he had to deposit it for "check fraud" and said something abt. being "wishy washy" when I called them an hr or so after I gave them the security dep and again before closing that daythat I changed my mind. I called my bank right away and asked them to put a stop payment to the check and it was in effect right away. I was a bit scared since the bank said that if they deposited it that same day and it clears midnight, even if I put a stop payment to it, they still won't be able to do anything. So, I guess the lowlifes deposited it the next day, not the same day as the manager claimed. I also emailed the attorney general,,,just because. I should also complain to BBB. The thing that bothered me with this transaction was we only signed the application form. I only gave the security deposit as "good faith" gesture, so they will hold the house. I never signed any other paperwork. I remember when I signed another form for the security deposit for the other house that we actually will lease. That was one of my concerns, when I asked the manager when I will get my check back and he said as soon as the check clears. Well, what if they don't sent it back right away? Like in your case, you're still waiting. That's why I decided to just cancel the check and to heck with them!

[USMC Fam]

It has been aprox. 6 weeks now with the property management company stringing us along-I am hopeful the BBB will be able to help us resolve this issue. We too were accused of being "wishy washy" because we had several questions regarding the process since we were new to the area and frankly it is a lot of money to hand over when the management company doesn't have your family's interests in mind. The property was great, it was the management company that was problematic and became more and more aggressive and personally insulting when we chose not to sign the lease. We were required to provide "real funds" via money order/cashier's check or their electronic system, so no ability to stop payment unfortunately. We too only signed the application form, nothing else. I will email the Attorney General as well-good idea. This experience definitely educated me about the process in FL and I have meant to include some tidbits for others moving to the area-since I am currently unpacking I haven't had the time yet. The good news is we found a home we like much more in an excellent area that we are really enjoying.

[MiamiRob]

Nixau27 most brokers will deposit funds before 2PM on funds recieved that day. They usually have to deposit within 24 hours / business day to comply with Florida escrow statues. You should have recieved your deposit back within a couple of days.

USMC fan I have been in the real estate business for 15 years and that is totaly absurd that you are waiting 6 weeks for a return of your funds! If they are a "legit" property management firm they are violating many state real estate laws. Tell them you are going to lodge a complain with FREC (Florida Real Estate Commission) immediately for escrow violations.

[nixau27]

MiamiRob, I did not really have a problem with them depositing the check if they told me initially on the phone that that is the policy in FL. If they did inform me when I called them after an hr I gave it to them, around 3 pm and again before they closed for the day, then I would have no qualms abt. it. The thing that bothered me was the underhanded way they handled the situation, informing me in the morning (The next day) when I walked in the office expecting I would get my check back (since I called them twice the afternoon before). And telling me I was being "wishy washy", when I had the prerogative to change my mind and make a decision that would best benefit my family. That's when I decided I couldn't trust this company any longer and cancelled my check. Which I'm really glad I did.

USMC FAN, I hope you resolve this right away and get your money back! It's good to have this forum so prospective renters like us are aware of the procedures/scams and what not. I would reiterate MiamiRob's advice to lodge a complaint w/ FREC. Good luck and let us know what happens.

[USMC Fam]

MiamiRob-this may be a naive question since I am usually a homeowner or living in military housing but would the FREC be interested in a rental property issue since I was the prospective tenant, not the homeowner? Just want to direct my comments to the appropriate place. The management company in question appears legit and has very few complaints overall which leaves me puzzled about why we are having such a difficult time receiving our funds, especially as we didn't sign a lease, etc. They have made snide comments about the military leading me to wonder if that is where the poor treatment of us came into play-just not sure.
Nixau27 I agree about how useful this site is and will keep you updated about our deposit being returned. I would caution any prospective renters to request a sample lease BEFORE they give anyone any money and to have all their questions answered throughly and ensure they don't find any surprises in the lease once they have already started the application process. I wouldn't even look at a home until I was comfortable with the sample lease. Hope this helps anyone looking for a rental-Thanks!