Going To Court With Board of Commission

By
Services for Real Estate Pros with I Am Marketing

Anybody have any guidence? 

The realtor that sold a friend's house has been investigated by the board of realtors comission (or whatever it's called) in New Jersey.  Between the realtor, his company, and the title company my friend lost out on over $10,000.  My friend had given POA to a relative as he had moved out of state before the close of his house.  Without notifying my friend, the agent lowered the sales price and the preliminary hud that was sent to my friend did not match the one that his relative signed the next day including a different lender and title company.  It's assumed to be more than a coinsidence that the agent turned around and then began working for the buyer.  We're going to court in a couple of weeks.  We don't want this to turn ugly, but it's a pretty sensitive issue. 

I've never been involved with any issues with the board. Thanks for any advise.

Comments (9)

Crystal Bush
I Am Marketing - Atlanta, GA

The decrease in price was not shown until the seller got a copy of the settlement paperwork after closing.

The sale was about a year ago, we've been disputing this and have had the investigation going on since.  

We did first go to the agent who avoided us.  We then went to the broker who was a bit more helpful, but that still didn't get us anywhere.  We sent a request into the board initially to see if we were pushing it to be more than it was.

 

May 29, 2009 12:59 PM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

It sounds like it should be a easy slam dunk for your friend.  The prelimanary hud should have had the correct sales price on it.

May 29, 2009 01:23 PM
Crystal Bush
I Am Marketing - Atlanta, GA

the preliminary hud...  the one we got the day before closing... listed the agreed price.  so he gave his poa the go ahead.  after closing we got the documents and the two huds had different sales prices, lenders, and title companies.

thanks for all of your opinions.

May 29, 2009 01:29 PM
Laurie Mindnich
Centennial, CO

If this took place in NJ, it's likely a very different real estate environment than you have in Georgia. Dual agency is very common, and Realtors turn everything over to a lawyer after the initial binder, or whatever they call it. Bottom line, the Realtors don't understand legalities/ethics the way that most states do. If it were anywhere else, a win would be a shoe in- in NJ (much like NY) a fair number of Realtors just don't get it, and are supported by equally ignorant boards. Good luck.

I relocated from Colorado to NY, and it's a whooooole different world of real estate. My mother sold her house in NJ, which is how I got acquainted with NJ practices. Lawyers do everything- who was the lawyer that was supposed to have fiduciary to your friend? That's worth a look- why didn't they alert the seller to the changes in paperwork that they were receiving?

May 29, 2009 01:31 PM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

Sounds like the agent closed with a POA and if signed by the party I don't see where the person who did  the POA has a leg to stand on. Exactly why I never do POA the sellers says sign and then denies it afterwards and who do you believe.

May 29, 2009 01:40 PM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Evening Crystal,  Sounds like some complicated issues ahead.  Please keep us informed.

May 29, 2009 01:43 PM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Why didn't the title company do the HUD according to the contract?  That's what E&O insurance is for on the title company's side.

May 29, 2009 01:55 PM
Bria J. Toulemonde
Lake Bluff, IL
CDPE

I think that it would be great if you could update us on how this progresses - it's an interesting scenario.

 

May 29, 2009 02:39 PM
George & Arlene Paukert
Road to Wealth, Inc. - West Palm Beach, FL

Sounds like from what you have said the dates and what was signed all line up in your favor. But, you just never no in court, good luck!

May 30, 2009 12:32 AM