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Careful How You Answer That Real Estate Question? Laws Vary State To State!

By Midori Miller

Services for Real Estate Pros with Talk 2 Midori, LLC BK645709

February 18, 2008 11:27 PM

Funny thing about blogging, sometimes out of the blue you receive a comment that requires action...

That's right consumer's asking general questions and giving a scenario without letting you know if they are in your state.

Be careful as we know that the laws vary from state to state.

Here is a comment I just received....

I HAVE A CONTRACT THAT FAILED TO CLOSE. THE BUYERS REQUESTED THEIR DEP. BACK.
ONLY THEN DID WE FIND OUT THEY HAD NEVER MADE THE SECOND DEPOSIT OF 90K. THAT SHOULD HAVE BEEN MADE 3 MONTHS AGO. DOES ANYONE KNOW IF THERE IS A RULE IN EFFECT THAT WOULD ALLOW US TO RECOVER.

ALL NEGOTIATIONS WERE MADE WITH THE ASSUMPTION THAT THE DEPOSIT WAS IN ESCROW. WE WERE NEVER TOLD OTHERWISE.

IF IT HAD BEEN IN ESCROW THEY WOULD HAVE BEEN WITHIN THERE TIME FRAME DUE TO AN EXTENSION GRANTED AFTER THE DEPOSIT WAS TO BE MADE.

MY ATTORNEY CAN FIND NO CASE LAW THAT IS TOTALLY ON POINT .......

HELP!!!!!!!!!

You may ask, how did I handle it...simple...I left a comment with the following..... Are you in the State of Florida, if so please email me at midorimiller@yahoo.com? Don't assume they are in fact in your state, as a matter of fact...don't assume...you know what they say?? How would you have handled it?

Disclaimer: The opinions expressed by The Activerain Network and it's members and those providing comments are theirs alone, and do not reflect the opinions of Midori Miller and CENTURY 21 Sundance Realty. Midori Miller and CENTURY21 Sundance Realty are not responsible for the accuracy or content provided by The Community.

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Kevin McGrath

Long & Foster Real Estate Companies- Fredericksburg/Spotsylvania - Fredericksburg, VA

Long & Foster Real Estate Companies

I agree - I think you have to be real careful how when you get into these discussions. In addition to the State issue, I am always concerned that I am not getting the full story.

Excellent points.

Feb 18, 2008 11:31 PM

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Midori, there should be a weekly reminder post like yours. Sometimes I have been horrified to see some of the responses to consumers in the Q & A section of AR.

Feb 18, 2008 11:32 PM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

A similiar situation just happened to me. The Seller is talking with their attorney for advice.

Feb 18, 2008 11:49 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Don't get in the discussion.

This is an "agency level" question in any state and should be answered only by a person's own agent or attorney.

Wouldn't touch it with a ten foot pole.

If they are an unrepresented buyer or seller, then I have no sympathy.

Feb 18, 2008 11:54 PM

Matthew J Blum - (retired from the business)

Palm Beach Gardens, FL

Midori, THANK You THANK YOU THANK YOU for writing this post. It drives me crazy when I see people on posts tell you the laws... Yes the laws in their state... who cares? You did the right thing... First find out where the property is before giving advice..

Feb 19, 2008 12:00 AM

Gary Love

Gary Love & RealtySouth - Birmingham, AL

That is so true, though in Alabama which is so different than a lot of states the money is not deposited in escrow, you go to closing at a closing attorney where the mortgage company has funded the loan.

Gary Love

Feb 19, 2008 12:08 AM

Margaret Woda

Long & Foster Real Estate, Inc. - Crofton, MD

Maryland Real Estate & Military Relocation

One of my pet peeves with the Q&A section of ActiveRain is people answering real estate questions in states where they are not licensed. A Texas broker, for example, would be wise to leave questions about Maryland real estate transactions to Maryland agents. There is not shortage of us. I am glad you addressed this topic, and I think you're handling it the right way.

Feb 19, 2008 12:45 AM

Monika McGillicuddy

Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH

Southern NH & the Seacoast Area

I freqently get those types of questions and you are so right laws do vary from state to state. I hate always saying that to them but it is so true.

Feb 19, 2008 12:53 AM

Jason Crouch

Austin Texas Homes, LLC - Austin, TX

Broker - Austin Texas Real Estate (512-796-7653)

Midori - This is an excellent point. I have had other agents ask questions of me here. Sometimes they are in Texas, but sometimes not. I am always careful to give them the "Texas" answer (i.e. tell them how it works here), but I also tell them that I don't know the answer in their state.

Feb 19, 2008 01:24 AM

Julie Neerings~Lifting Hearts ♥ Building Dreams~

Agent Referral - Salt Lake City, UT

Midori~That is an excellent point and it is clear through all the many posts here that each state does handle things differently.

Feb 19, 2008 03:53 AM

Ruth Rivera

Zip Realty, Inc. - Deltona, FL

Central Florida Real Estate

Midori, Thanks for pointing this out, sometimes we forget the web is nation wide.

Feb 19, 2008 08:56 AM

Midori Miller

Talk 2 Midori, LLC - Daytona Beach, FL

Online Marketing For Real Estate Professionals

Hi Everyone-I have not heard from this person and did not expect to. If they were to contact me...I would relay the following info: I think sometimes consumer's get upset and are looking for another answer...I am not a lawyer!...I am not willing to take liability....I fully respect my license.

Len said it best, I would not touch it with a 10 foot pole...for many reasons....Not enough info...I need a whole file to talk about things like this...I need to look at each and every document....sometimes I have to call the owner...or call the FAR hotline! Are there real estate professionals involved? I could go on and on....

Who knows what the status of this transaction is...or even who is asking....I said it before...I will say it again...who knows who is lerking..people are getting sued for some interesting things...things they find offensive in blogs. Not only should we blog responsibily but respond the same way too!

I have to say, I get questions asked, I have spoken to many rainers...I have gotten e-mails asking me real estate questions but this one startled me a bit!

Feb 19, 2008 08:59 AM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

Midori, I think you handled it fine. I just ignore the questions on Trulia that are not in my immediate area, or that are in MI and I can answer honestly. I don't understand how anyone would feel comfortable answering questions out of their state.

I was on a Grievance hearing about a month ago and the same situation occurred. The Realtors involved were reprimanded and that letter goes on their file. They should have known.

Feb 20, 2008 10:52 PM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

I had a similar situation not long back. I was told the deposit was made by escrow only to find out later that the check bounced and no one informed us.

Feb 21, 2008 05:11 AM

Neal Bloom

Brokered by eXp Realty LLC - Weston, FL

Realtor CRS-Weston FL Real Estate

Midori,

I gather there are similar situations in other states....

Feb 21, 2008 12:25 PM

Rosemary Brooks

BMC Real Estate - 209-910-3706 - Stockton, CA

The Mother & Daughter Realty Team

Great information and reminder on how to protect yourself and the inquirer - make sure you check to see where they are living.

Feb 25, 2008 12:30 PM