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We signed a contract to buy a house at the lawyer's office. A few days later, the lawyer made manual handwritten changes to the terms of the contract (number of days we are allowed to get loan and mortgage changes - down payment amount increased and type of loan changed). We were never asked to sign the changed contract or even initial next to the changes. The lawyer did email the changed contract to my husband and asked to confirm receipt but my husband never checked that email and never confirmed receipt. However, the lawyer called my husband right after sending it and said that the seller wants us to make those changes and supposedly my husband said "ok" over the phone. I was never aware of this and my husband did not realize the contract was changed since we always thought for that to happen we need to sign or at least initial an actual piece of paper or send something, anything in writing.
Are you bound by this new terms on the contract? Can it be voided and only the original terms of the contract stand? Is the only way to fix this through a lawsuit? We only have 15 more days to secure a mortgage, after that we lose our escrow.
We signed a contract to buy a house at the lawyer's office. A few days later, the lawyer made manual handwritten changes to the terms of the contract (number of days we are allowed to get loan and mortgage changes - down payment amount increased and type of loan changed). We were never asked to sign the changed contract or even initial next to the changes. The lawyer did email the changed contract to my husband and asked to confirm receipt but my husband never checked that email and never confirmed receipt. However, the lawyer called my husband right after sending it and said that the seller wants us to make those changes and supposedly my husband said "ok" over the phone. I was never aware of this and my husband did not realize the contract was changed since we always thought for that to happen we need to sign or at least initial an actual piece of paper or send something, anything in writing.
Are you bound by this new terms on the contract? Can it be voided and only the original terms of the contract stand? Is the only way to fix this through a lawsuit? We only have 15 more days to secure a mortgage, after that we lose our escrow.
So they made changes after escrow was opened or before escrow was opened?
Lawyer made changes to the contract (6/8) after the escrow check was deposited into a holding account (6/3). Original contract was signed by the seller on 5/31 (we signed a couple days earlier).
Lawyer made changes to the contract (6/8) after the escrow check was deposited into a holding account (6/3). Original contract was signed by the seller on 5/31 (we signed a couple days earlier).
Your lawyer can act as your agent. They're legally allowed to do things on your behalf. They're expected to only do things in your best interests, I.e. "Fiduciary duty", they can sign contracts for you, agree to xx days in jail, etc..
If a lawyer did something that wasn't in your best interests, you might be able to sue them, but I'd suspect that's kinda like peeing up a rope - not likely to work very well.
Anyone *except* your lawyer signing a contract on your behalf wouldn't bind you to it's terms.. Unless they had.. A "power of attorney".. Which is kinda aptly named..
Real estate contracts need to be in writing. That goes for any changes to the contract, too. Your husband needs to sign or initial any changes...and if you're a party to the purchase you need to sign the contract--or any changes--as well. A verbal "okay" over the phone is not sufficient.
Lawyer represents us, the buyers. It sounds like we are screwed and the changes our lawyer made make the new contract valid because he was supposedly acting in our best interest?
In a previous real estate transaction, when the seller requested changes to the contract, our lawyer had us initial and date next to each item that was revised.
Last edited by marycotter5678; 06-20-2016 at 07:59 PM..
Lawyer represents us, the buyers. It sounds like we are screwed and the changes our lawyer made make the new contract valid because he was supposedly acting in our best interest?
In a previous real estate transaction, when the seller requested changes to the contract, our lawyer had us initial and date next to each item that was revised.
He was acting in your interest, or at your direction.. (claims he called one of you)..
to get out of that, he'd have to argue that he did it on his own & you weren't advised of it..
doesn't seem likely..
The initialing at your previous signing would really just be a formality - a chance for him to effectively CYA, getting you to acknowledge that you agreed to a term.
Your retainer agreement with the attorney basically gives him power of attorney for the matter in which you retained him (buying the house)..
Tell your husband to not blow off someone as important as your lawyer. When you give someone power of attorney then they have the power to make these kinds of changes for you without your consent as long as it is in your best interest. This time however they got the verbal okay from your husband because he was just blowing the lawyer off. Call your lawyer and make sure they contact you from now on since your husband isn't interested in dealing with the purchase.
Lawyer represents us, the buyers. It sounds like we are screwed and the changes our lawyer made make the new contract valid because he was supposedly acting in our best interest?
I wouldn't jump to that conclusion--unless you have given him express authority to sign on your behalf.
Quote:
Originally Posted by Zippyman
Your retainer agreement with the attorney basically gives him power of attorney for the matter in which you retained him (buying the house)..
Not necessarily. In fact, I think that would be very unlikely in my area. There are a number of good reasons why a lawyer would not sign for a client. The lawyer needs to make certain that the client understands the terms of any contract...plus a lawyer would have greatly increased liability if they would be the one to sign a contract for a client. In this case, there's no indication that the lawyer has even signed or initialed the contract. In every real estate transaction in which I've been involved, the lawyers made sure that their clients signed the contracts.
I wouldn't jump to that conclusion--unless you have given him express authority to sign on your behalf.
Not necessarily. In fact, I think that would be very unlikely in my area. There are a number of good reasons why a lawyer would not sign for a client. The lawyer needs to make certain that the client understands the terms of any contract...plus a lawyer would have greatly increased liability if they would be the one to sign a contract for a client. In this case, there's no indication that the lawyer has even signed or initialed the contract. In every real estate transaction in which I've been involved, the lawyers made sure that their clients signed the contracts.
And my attorney wants me to sign docs myself too (for his protection).. Yes, he (their lawyer) theoretically has liability, but how many regular folks sue their lawyers & win? Remember their own lawyer is saying he authorized the changes after consulting his client.
To argue the point means you're arguing against the other party in the contract, the escrow company, the listing agent & your own attorney. Who's going to represent you in court/arbitration, etc when your own attorney won't (for whatever reason).
I'd expect my attorney to make it clear that any money pledged in a contract & certainly any funds deposited in an escrow account may go "poof" if I don't perform on the contract.
I don't know how you would argue that your own attorney doesn't have a right to represent you & do things on your behalf after consulting you. It's an assumption that an attorney's retainer agreement has wording allowing that to happen, maybe it doesn't, but this particular lawyer seems to think it does.
This particular deal has gone full "Jerry Springer".. At this point, I'd just be begging for mercy from the sellers & hoping they agree that the reason for non-performance is valid. I don't think there's anything left to do.
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