Question:
I hired a real estate agent to sell my house. We got an offer for less than what we owed on the house. We have a first mortgage and a second mortgage. Our real estate agent told us that he would take care of getting approvals from the banks to accept less than the loan amounts. To make a long story short, the banks did not approve the short sale but, much to our surprise, the agent had already given the keys to the prospective buyers and they moved in. The agent now tells us that we have to reinstate the insurance and sign a new lease with the prospective buyers. What should we do?
Answer:
What a mess. Your scenario has raised serious legal questions in numerous areas of the law, too numerous to adequately address in this column. It underscores the importance of proper legal representation in real estate matters no matter how simple they may seem. You are now confronted with problems that could take tens of thousands of dollars to correct. The problems that you now confront, should have and could have been avoided had you hired an attorney up front. Real estate agents often tell buyers and sellers that attorneys are not necessary but in many cases, as you have found out the hard way, this is not true.
If you have a real estate transaction pending, even a simple one, call me. I can help avoid problems like the ones you just read about.
John W. Drury is a partner with the law firm of Matecun, Thomas & Olson, PLC in Howell. He answers readers’ questions on legal matters affecting individuals, their families and their businesses. Email questions to [email protected], or if your question is urgent, call (517) 548-7400. Visit us at www.mtolaw.com. The information in this column is not intended as legal advice.