I have been watching my gardener with interest lately. He is a most proficient skilled worker, but he carries around a noticeable burden. Everyone has stories to tell and the amazing part is that no two stories are alike. His son approached me one day and said, your a Real Estate Broker aren't you? I said sure....and then he told me this story....
10 years ago, a Real Estate agent approached his Spanish speaking father and asked him if he wanted to purchase a 3 unit residential site. The father happily said yes and..... deposited the monies.
The agent explained to him that he would keep his name on all the paperwork so that there was no chance of the deal falling through. The father, a simple man who knew nothing about Real Estate thanked him and followed his direction and advice.
After the close of escrow, the agent approached the man and had him quitclaim his wife's interest in the property. Now, the deed read....tenants in common as to a 50% ownership with the agent and with a 50% ownership to the father. The father was very grateful to this man for all his help.
Over the next ten years, the father worked day and night cutting lawns and digging trenches to pay off this property. He did so. During that time, he put money into the property and maintained it at his sole expense. He paid all the taxes too.....Not a word from the agent during this time........TEN YEARS......not a word
Less than one year ago, this agent put his 50% ownership of the property up for collateral on a loan he needed to start a restaurant. When he did not pay back the funds, the lender of the money began litigation and filed a partition action to force the sale of the property so he could collect his monies.
The gardener and his family had a tough time swallowing the fact that they didn't own 100% of the property and that their agent had half. They never knew this. They argued that they paid it off with their hard work and sweat. They said they put down all the original funds. How could this man own their property?
The father and the family were flabbergasted and knew not where to turn... or go... or what to do? They ended up giving $5000 plus to an attorney who used the funds to bill for his paperwork and time, but left the case unresolved. The father ran out of money and had to let the attorney go.
The other party became more aggressive when this happened and went for the "kill" and set the whole thing for trial. The father, a simple man...knew not what to do....
The father shows up at the courtroom, but doesn't know he is allowed to enter into the court room. So he waits outside in the hall to be called. He does this more than once. The result: the court finds he did not show up (twice) and grants forward movement to the party trying to foreclose.
They came to me with all the is paperwork and story. I reviewed it and concluded:
Statue of limitation has expired. Your attorney has not remedied the situation, but kept an open billing instead. The property is scheduled toward a successful partition action trial. My Recommendation: Start fighting back correctly or try to settle this. They asked me to help them.........
Long story short....First, I contacted this lender and asked why are you doing this? Strangely enough, he relented and said, he would drop his position and for me to contact the agent (his friend... I learned later). I contacted this agent and asked him to try to settle this. I did not bring up anything else. Just resolution. He was guarded, but intelligent and wanted $25k to settle. When I brought up some truth & fact, he became very defensive and argumentative. I had to back down or negotiations would have concluded. He would accept terms etc. If not, he expressed remorse to have to force the sale, but he wanted his money........I submitted his offer to the gardener and I am waiting to hear from him...at this time
THE AGENT GOT AWAY WITH....... SWINDLING THESE PEOPLE OUT OF 50% OF THEIR PROPERTY...........
I am still amazed at the goings on in the Real Estate business. I caution everyone to over-counsel their position when it comes to the biggest transaction of your life.
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