A Ex-Wife Pops Up and the Sale is Off!

Question: We made a good-faith offer to buy a house. The owner who listed the house for sale accepted our purchase offer. We proceeded with the inspections and made plans to move in. About five days before the scheduled closing date, our agent told us the seller's ex-wife refused to sell. We and our agent had no idea there was another owner involved. She never signed the listing. Does the listing agent have any financial obligation to us for the costs we incurred?
Answer: Possibly. A knowledgeable real estate agent, when taking a listing on a property for sale, will check the title status to be certain there are no undisclosed owners and/or liens that the seller failed to disclose.

Perhaps the ex-husband thought he could get his ex-wife to agree. But that is no excuse for the listing agent's failure to have the title checked for undisclosed owners who might have an ownership interest.

Your agent is partly to blame because surely she received a title report on the property and noticed the     ex-wife's name on the title. Consult your attorney as to possible recourse against the realty agents.

Limit on Widow's Gains Exclusion

 

 

Information Provided by Catherine Sheldrick, United General Title