Our local association offered a class on the new 2021 contracts. Not all are changing, but a few, and was interesting to hear about the changes.
The instructor reviewed the transfer of the Deed, and which ones should be used in Colorado. During this time, it reminded me of an interesting transaction a few years back.
My buyer LOVED this house - it was a 1970's house but had been completely remodeled. The kitchen and bathrooms and had been gutted, new flooring, new windows, so did not feel like an older home. The Buyer went pending, and when we got the title work there were quite a few items that needed correcting.
Come to find out, the agent knew this homeowner, and he was in trouble financially, and this agent bought it from him, ON A QUIT CLAIM DEED.
This was the kicker - a couple of weeks into this transaction, I get a call from an Attorney that was handling the bankruptcy for this homeowner. It was a shock to hear, the home was PART OF THE BANKRUPTCY. This agent had no rights to list or sell it, and this attorney was preparing documentation to prosecute this agent.
After this call, I called the agent, and relayed the conversation, and also heard, this agent had spent around $60k remodeling this home. OH MY!
To make a long story short, the Buyer remained in the transaction for a month after knowledge of the title issue but finally said - OK, I'm done, and got his earnest monies returned.
I was thinking this agent may lose his license, as this was a very risky transaction, but he is still active. This home was taken by the attorney, and not sure if this agent ever recouped the dollars he invested, but sure he learned a lesson, an expensive one!
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