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Call the Police! Buyer Moves In Before Closing!

By
Real Estate Broker/Owner with Rulnick Realty, Inc.

Police Car

Yesterday was one of the most bizarre days in my real estate career.  My assistant got a call from a condominium association trying to verify ownership of one of my Destin Florida foreclosure listings. The bank-owned condo was under deposit, and scheduled to close at the end of September.  The condo association said they had been told the buyer had already moved in and was claiming to be the owner.  "No way!" I thought. "This cannot be true!"  So, I hopped into my car, my heart racing, with two of my assistants, in case it was true and there was a confrontation.  We got to the unit, right down the street from my office, opened the lockbox and found the key was missing.  We drove back to the office, got a back-up key, and returned.  Wow!  Was this the right unit?  It was newly and completely furnished.  Sofa, chairs, coffee table, lamps, tv's, beds, night-tables, end-tables, dining room set, bar stools, patio furniture, dishes, towels, new refrigerator and oven.  New ceiling lights. New window blinds installed.  The cable had been hooked up and the television worked.  I couldn't believe it! 

What if the buyer returned while I was there?  Who should I call first? The police, the locksmith, the bank, or the buyer's agent?  I immediately called the locksmith and the police.  The deputy arrived first.  He shook his head in dismay.  I had the file from the office. The buyer was from California.  There was a car with California tags parked in front of the unit.  The deputy checked, and bingo-- it was the buyer's car. I had the buyer's telephone number. The police called him.  He claimed he felt it was convenient to move his things in, as he had gone back to California, and wouldn't return until January.  "What do you want to do?" the deputy asked me. "Did you want to press charges?" I told him I would try to reach the bank, but it was late in the day, right before Labor Day weekend. 

Meanwhile, I called the buyer's agent.  He claimed he had left the key with the buyer and his inspector, and had to leave early, with instructions to the buyer to re-insert the key in the lockbox.  He said he had no knowledge of what the buyer had done.  I reached the bank, a huge foreclosure processor.   The rep was in shock. After I told him what happened, he put me on hold for about five minutes.  When he picked back up, he said unequivocally, the contract had been revoked due to the buyer's actions, I was to press charges, and they were going to start the eviction process.  I re-called the police, made my statement, and finally left the office around 7:30 p.m.  Who knows what tales will unfold next week?

P.S. The funny thing is, I wrote about this same buyer a few weeks ago in Foreclosures: Multiple Offers - Deceipt & Subterfuge.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

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Copyright © 2008 By Wendy Rulnick. All Rights Reserved. *Call the Police! Buyer Moves In Before Closing!* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity.

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"It's Wendy... It's Sold!"

Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

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Comments (23)

Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Wendy,  Aside from the obvious lapse of common sense and procedure it would have been great for the buyer to be able to maove in early.  That said, to do so without any permission or approval and not even involve the buyer agent is totally wacko !

Aug 30, 2008 06:25 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Freddy- I am still in amazement over it.

Lenn- I thought I had seen it all-- until this.

Linsey- The buyer's agent is actually pleading to save the deal...

Bill- I usually don't like early occupancies in the first place, because you have a" tenant", but this is a "Squatter"!

Aug 30, 2008 06:39 AM
Steve Homer
The HBH Group (Keller Williams affiliate) - Round Rock, TX

Wendy:  Ditto on the buyer's agent comments.  In Texas, I would have already filed a complaint with the Texas Real Estate Commission.  My broker is on the commission - that agent would be license-less by next week and possibly the inspector too...  Wow, keep us posted!

Aug 30, 2008 06:54 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Steve- Is it unreasonable to assume the buyer lied to the agent and told him he replaced the key?  I am not saying he did the right thing, but many agents in my area leave inspections early.   What this buyer did is way out of the realm of normalcy.

Aug 30, 2008 07:31 AM
Denise Allen
Resh Realty Group - Chesapeake, VA
Realtor@ Chesapeake, Hampton Roads

You know it takes all kinds to make the world go around and you just found another one.

Aug 30, 2008 07:35 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Denise - Good one.

Aug 30, 2008 11:09 AM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

I would have the locks changed immediately, if the Condo has security inform them that the person is not supposed to be there, Have the buyer evicted and then i would throw the book at the agent that "left the key" either they knew or should have known.

Is the utilities still in the banks or your name? if so turn them off immediately.

Aug 31, 2008 05:34 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Outrageous action by the buyer's agent.  We have only his word that he didn't know anything about his buyer moving in early;  at a minimum, why did he not go back to the house and make sure the key was back where it was supposed to be?  Criminally negligent, lazy or just stupid? Doesn't matter, the end result was the same. It is NEVER acceptable for an agent to fail to do the right thing, regardless of the excuses or the circumstances.

There is too much potential liability for a seller to allow this sort of thing to occur.  Good grief.

Aug 31, 2008 06:00 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Andrew- Excellent points. I did have the locks changed immediately.  The buyer turned on cable TV. - I can hopefully have that cut off.  I don't believe he occupied the unit - there was no food in the refrigerator, which was brand new and had packing tape on the door, but I could be wrong.

Susan- I am going to contact the association grievance committee.  You're right, he may have known.  He was surprised by my stern attitude.  The police also said the agent was really an accessory to the action.

Aug 31, 2008 08:44 AM
Laura Giannotta
Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ
Your Realtor Down the Shore!

Talk about a deal from hell!  I remember the last blog you wrote about this.  Wendy, where do you find these people:)!!

Good luck and keep us posted!

Sep 09, 2008 10:15 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Laura- Believe it or not- the bank told me today to allow the closing. They just want the earnest money deposit increased by $1000 and to be nonrefundable!

Sep 09, 2008 11:03 AM
David Slavin
Keller Williams Premier - Katy, TX
CDPE, ABR, SRES Keller Williams Premier

WOW, I can't believe people think that just because they have the key that they own the property without signing any papers.  Just who do they think they are?

Sep 09, 2008 11:04 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

David- I still cannot understand it.  Something "off" with the buyer, obviously, that's the only explanation I can think of.  Way off.

Sep 09, 2008 11:39 AM
Chad Baird
Re/Max Spirit - Dayton, OH

Sometimes those buyers get a bit sneaky and will do this.  I got a call one night from an upset agent because the house we had in escrow was up for sale on a website.  She gave me the site and there it was, and remodeled.  We were within days of the closing date. 

I called the client and they were confused about why I was upset or the owner was upset.  When I told them that all of their work and efforts may be gone as they violated the contract and broke the law in so many ways I got their attention.  Luckily all they had to do was stop marketing it until closing. 

Luckily I had done many deals with the agent, and he knew I was an innocent person. 

Sep 09, 2008 12:46 PM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

Just had a home today where closing was delayed but the key was out of the box and the carpet was all removed...

The buyers agent knew nothing about it.... And i have a bridge to sell you in Sanfrancisco

Sep 09, 2008 05:35 PM
Stacie Cunningham
Altera Real Estate - San Clemente, CA

I need an update!!! What's going on now???~Stac

Sep 09, 2008 05:42 PM
Brenda Harmon
Century 21 Beal, Inc College Station, Texas - College Station, TX

I sold a house to an inspector one time.  He and his wife ran the lockbox company so he could get it.

He got in before closing, knocked out a wall and took out a toilet.  He knew better.  I told him, "If this doesn't close you are in a world of hurt."

It closed.

Sep 09, 2008 05:48 PM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Chad- Oh my- it happened to you, too? Crazy world.

Andrew- How much you asking for the bridge?

 

Sep 10, 2008 12:27 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Stacie- Update -bank told me yesterday to allow the closing. They just want the earnest money deposit increased by $1000 and to be nonrefundable!  I am surprised, but relieved in a way. It would have been a mess to get his stuff AND improvements out! He got off "light" in my opinion.

Brenda - Gosh-maybe this is more common than I thought.

Sep 10, 2008 12:32 AM
Jason Bhattacharya
ARDENT PROPERTIES - Chesterfield, VA

Wendy,  if the bank allowed the house to close--  Are they dropping the criminal charges?

 

 

Sep 11, 2008 12:59 PM