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We retained a real estate attorney in an adjoining county (to avoid the "home town good Ole boy conspiracy) because it's "who you know" in that county. I've spent 3 days copying all documents we have, all correspondence including text messages, and writing a 7 page story of exactly what has transpired from 11/07/2015 through present. This atty will be present at closing (if that happens, but doesn't look good). He asked us to contact the title company and get copies of documents that will be presented at closing so that he can review them before that date. My husband called them, they have nothing but a clear title from him as we hold no mortgage, it's been paid for years ago. They have until June 15th to buy our home, if they cannot do that we have already lined up a new realtor (in another county of course) and are prepared to supervise them moving their belongings out of our home along with paying for our storage fees back to Feb. 6th, storage fees for using our home, utilities, and propane to be paid on that day. Had I known about per diem We would have tossed that in too. Then...will update on next step. Stay tuned. Thank you all for your advice, opinions, support and encouragement. I believe your educated input aided in helping us come to this decision. Sometimes we question our decisions but when you have a professional group of Americans like yourselves all saying the same thing, well that has to count for something! We must ensure this doesn't happen to anyone else!
This is ridiculous.
Have your attorney sue your realtor.
Basically these people are squatters with your realtor's assistance. Whether they are actually living in the home or not, they have taken possseion. Your realtor was your trusted representative.
When you say "have until June 15th to buy", do you mean that you are to have a closing by that date or another contract? I ask because another contract, to me, would seem like another can of worms with this buyer and agent and if it is a closing, shouldn't that be scheduled with all else prepared etc by today? Your post and dilemma have intrigued me and I am hoping for a fair and happy ending for you.
Update: We have retained an attorney. He agrees this whole fiasco is illegal. I have spent days copying all of the documents in our hands including text messages from the agent. There is no closing date, there is no current contract as the last one they modified to suit their purpose expired May 31st-a contract and closing date we were unaware of.
We have not signed any documents since April 14th the FHA addendum that my husband signed but did not date. The agent was texting and calling all weekend asking my husband to please sign and send the lead-based form along with the FHA addendum she had sent in April,that's what all she needed to close this. She stated he is holding this up by not signing these forms and sending back to her . Then she said she doesn't understand why he had to get a lawyer as they had done nothing wrong.
She later text that she found the forms she needed, that he had signed (in April) and wanted the lawyers phone number. She stated she emailed a disclosure for him to "please" sign" so we can get this cleared up and close, she said she's worked hard on this for 6 months and she wants her money.
I checked the email she was referring to this morning. The first one states she found the disclosure he signed and was forwarding to the bank, Please work with me this will be done soon. Think about this no one will give you what he is giving you your getting full price. She then sends another email: says "Read #4 of listing you signed-if we have buyers the listing goes on for 6 months and we are within that time Please help me close this." Attached is a new addendum/amendment to offer to purchase: address is incorrect under "Property".
Contract amendment states: "closing date extended to June 30, 2016
She wants this signed and sent back to her. Thus far closing dates are as follows:
#1- Jan 31, #2-Feb 29, #3-May 31 (which we were unaware of, modified forged contract), and now they've decided on June 30th-
Question' Can they use modified/forged contract from May with expired closing date?
Can they use lead paint disclosure and FHA Amendatory Clause from April?
Can they legally date document for him where he signed but did not date or should a new one have been
Issued?
Anyways the lawyer had a conference call Friday with the Geneva bank, my husband and the broker-at that point the bank said there was no closing date yet but he was sure this would go through, the broker was pretty much silent only stating he did what he did to try to move this through faster. The lawyer told the broker maybe he should seek legal cousel, and maybe he should just buy the house then he can sell it to the buyer.
The June 15th deadline was given by us-We put this in writing to the agent a week or so ago & to the buyers wife who called -They were told-If this does not close by June 15th we are coming to move them out of the house and they will pay all storage fees and utilities, propane. If it does close, they will still pay those fees on June 15th. They agreed. Total amount $2490. Obviously we are going north on June 15th.
In the agents reference to the listing agreement which was signed on Oct. 24, 2015: The agreement stated#1 The seller grants the broker the exclusive right to sell the property from 10/24/15 to midnight on 12/31/15.
#4 states the seller will also pay 6% commission within 6 months after contract expires.
The broker took the house off the market in December 2015. We are working drink with all of the discrepancies in this case does that 6 months still hold true? Either way June 30 is 6 months from Dec 31st and we are not closing with these ignorant people. We're really done with this! We feel the agent and broker stopped representing the seller and began representing the buyer at the first missed closing date. From then on it was all about the buyer with them.
Will update soon. (Sorry about not using paragraphs before, I'm tryinghope this makes sense-losing my mind here...
Thanks for the update. "If" everything had been correctly signed (and not forged) and you agreed to extend the buyers' closing dates, than the 6% commission would be relevant if closing happened before the 6 months was up. That's not the case here though and at least once (as I recall) your husband did not agree in writing to the closing extension.
Never were you, or are you, required to extend the closing date.
That's for the update. Since the buyers "agreed" to pay for utilities and propane, they've pretty much admitted that they've occupied the property without your permission--and most likely with the knowledge and permission of the agent and broker. It sounds like the agent and broker are really squirming. Good to hear that you have a lawyer working on this. I still hope I get to read about this case in a future continuing education course!
The agent still thinks there's a commission earned here? Lol.. wow. If there's any justice in the world, the broker & agent won't have R.E. licenses after this, much less commissions. Not only did they *not* represent you, they turned the keys to your property over to squatters & took the property off the market in the prime selling season, keeping you from finding a qualified buyer for months.
I really wouldn't be worried about the "listing agreement extension" - brokers are loathe to try to enforce those in even clear-cut cases where a seller is trying to cut them out of an earned commission - much less a situation like this, where their license may be in jeopardy.
Any settlement from me would be looking for back rent, taxes & carrying costs until next spring, when most houses usually sell in Michigan.
Update: We had given verbal notice to potential buyers wife via phone at end of May-written notice via email to buyer and agent at same time-they had until June 15th to close or we will move them out and it is over. We drove to our home up north Monday June 13th to prevent them from actually taking up residence then we would have to go through eviction process. What we found was absolutely appalling! Their furniture and stuff filled the house but was pushed into corners (most of it to be out of sight from windows. The garage was full. Damages include 3 long scrapes on kitchen floor (oak), drywall in hallway banged up, threshold at sliding doors (oak) was ruined splintered, from moving things in, stove had scratches and scrapes from cutting food on it, cigarette buts on garage floor and all over outside, piles of ashes on outside of Woodstove in LR and Woodstove in kitchen. Propane was at 15%, we put 50% in February. Hot water was turned on. A chest freezer was in laundry room plugged in and full of food, our shed had a large box with about 5 or 6 garbage bags with trash, food packages full of maggots. Microwave and stove were filthy along with muddy boot prints all through house. Mailbox had a stack of mail with their name and address change stickers from post office.
We text agent and told her "this is over!, show us proof of closing immediately!" She text back in morning, told my husband he has no compassion, these people need a home, he is not a "nice guy". We called title co. They had nothing to prove any closing. We got keys back from broker and gave him letter of our termination and intentions to go to LARA and file complaints. We changed all locks and moved everything into the garage. Much of it was brand new, obviously they had gone shopping and spent thousands on decorating this house. If they had saved that money and used it as a down payment, the loan may have gone thtough! We didn't put it outside because we are not terrible people-they do have 3 young daughters, a lot of it is clothing and children's belongings, also we gave them the option of paying us $1500 before they can have their stuff. Wednesday they did not show with money so it will be there until they pay.
The buyer texted all day begging pleading with how much they want this house, etc. How perfect it is for them, location....!The banks will not finance him, we did some research, his credit score is 620. They have 35 acts in collections! Hi dad came and tried to talk us into waiting, 3 more days, 2 more weeks, sure this will go through, we were just done at that point and disgusted!
We relisted with a reputable realtor later Tuesday. He was disgusted as well. We managed to get the whole house cleaned up and looking like it did when we first listed it 7 months ago.
In talking with our attorney, he stated if we take this into litigation, it could go on for a year, we would spend a lot of money and after all costs of paying we would probably walk away with nothing.
We decided to just file the complaints, we still are paying our attorney for his efforts, and squatters owe us $1500. A burden has been lifted and we can put this behind us and hope to sell to someone that deserves this place, soon.
This has cost us dearly and set us back with our own plans we had by at least a year.
If this guy doesn't come up with the money by June 30th, we will give them their clothing and beds but keep the rest. We could use a big screen T.V. lol! Maybe sell the rest to recoup our losses.
We have plenty of evidence in text messages stating the needed information of the realtor giving him the keys, us tellin the agent no they cannot move in, etc.
So on our way home last night, I began to do a little more research- this explains the buyers insistence on moving in as soon as he could- I typed his name into google- the MSP Sex offender registry came up-he was charged with 2nd degree csc w/personal injury to the victim 18 years ago, a felony. He is listed until 2048. He needed an address to report to avoid arrest for not reporting. I am soooo glad this did not go through and close, so are the neighbors!
That's my story. I thank you all for your advice, concern, support and encouragement.
I will update the end results from our complaint with LARA and also with good news of a sale to people that deserve to live in our home! Thank you!!!
Paragraphs
In talking with our attorney, he stated if we take this into litigation, it could go on for a year, we would spend a lot of money and after all costs of paying we would probably walk away with nothing.
I agree with your attorney. Even if you'd win a judgment against the squatters, you'd probably never see a penny.
Go after the Broker and agent through LARA--the Department of Licensing and Regulatory Affairs.
I agree with your attorney. Even if you'd win a judgment against the squatters, you'd probably never see a penny.
Go after the Broker and agent through LARA--the Department of Licensing and Regulatory Affairs.
Good luck!!
A civil suit would be looking mostly at the broker/agent for damages, not necessarily the squatters - though the squatters get named in the suit as well. I'd expect the broker to pay, since they're licensed professionals with a fiduciary responsibility to the seller & they clearly handed over the keys against the seller's explicit instructions.
I can see just wanting to move on though.. At a minimum, I'd be all over the state to sanction the broker's license - there's no point in even having licenses if you can't take them away from people who do evil things.
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hope this makes sense-losing my mind here...
