Having just closed the absolute worst transaction of my real estate career, the anger and resentment are still very real. We can't always anticipate the integrity of the party on the other side - whether the agent or the client. I happened to be cursed with an incompetent agent with little to no experience and a witch of a short sale investor. The agent's ignorance was only surpassed by her client's arrogance.
Without getting too involved in specifics, buyer presents a VA offer at an agreed upon sales price, at an agreed upon date, with an agreed upon earnest money deposit, with an agreed upon title company (of the seller's choosing). After learning that the buyer was going to change their financing, which was absolutely allowed per the contract as long as the client was approved, and the change did not adversely affect the seller's net or delay settlement, the investor decided that since my clients were putting less money down, they should pay more for the house! After considerable harrassment, my clients sought legal counsel and proceeded to fulfill their obligation to get to the table - in complete compliance with the contract.
On a number of occassions the listing agent contacted my client directly to ask him if he was using alternative financing and. if he was. he would need to pay an additional $15,000 for the house in order to have the seller's "permission" to do so. Extortion? Blackmail? We ignored the requests until push came to shove and the seller served a unilateral notice a week prior to settlement saying that they were "voiding" the contract for several bogus reasons - one of them being that the buyers were "changing" the financing terms (to which they had a perfect right).
Fast forward - lis pendens and a complaint in court and voila - they suddenly had a change of heart. When stupidity and greed are stacking the other side, it's doomed from the start!
Lesson from all of this:
- NEVER give in to intimidation from a greedy, pushy agent or principal.
- ALWAYS recommend your client seek legal counsel at the first sign of trouble.
- DOCUMENT everything - it's amazing what stupid agents put in their emails!
- STUDY case law and understand your contract - but do NOT try to give legal counsel.
- RECOMMEND several lenders you trust with whom your clients can rely on.
- CONSULT WITH YOUR BROKER - let them know immediately what you are dealing with and ask for advice.
- PRAY....Sometimes things need to be given up to HIM!
Irene Morales Ward, Northern Virginia Real Estate
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That is an amazing story. The contract is so cut and dried on this point, I just don't understand where those folks were coming from. Great advice!