Posted by Stacy (AZ) on February 10, 2000 at 13:51:07:
I wouldn’t waste time battling an experienced investor by myself, if I were you. You really need to see a lawyer. Sometimes a well worded letter from a lawyer will be enough to get the ball rolling again (if you’re lucky).
It may be best to simply decline to sell to him, and hope he doesn’t sue for specific performance. You really need that attorney to review the contract.
Help! We are being bullied by a more experienced investor! - Posted by Sherri Welton
Posted by Sherri Welton on February 10, 2000 at 13:40:17:
Can anyone offer their experienced advice? We are newbies and have entered into a Sales and Purchase Agreement for a house (we are the owners of the house). The purchaser is an very experienced real estate investor and a supposed millionaire. There are extensive repairs to be made on the house which we agreed to. But, unfortunately, the handwritten stipulations (which he put in there) say he must sign any change orders and come to an agreement on the price. He is refusing to sign the change orders (for various reasons, mainly because he says the prices the contractor will charge are too high (which they are not). Now he says he will not agree to an extension of the completion date. He is making it impossible for us to complete the house. Now get this – as part of our contract, he bought our promissory note from our lender. Therefore, he holds a note from us to him for $125,000 for which the house in question is collateral. He’s making it impossible for us to complete the house, so we think he’s going to try to foreclose on the note. We think he’s a criminal or at least a slimy character. What can we do? Is there any regulatory agency for real estate in Georgia we can check with to see if there’s been any complaints against him or if he’s done this before? Thank you so much!
Re: Help! We are being bullied by a more experienced investor! - Posted by Marc Donovan
Posted by Marc Donovan on February 11, 2000 at 12:33:09:
Don’t worry so much. Its OK.
He bought the note in order to get the property cheaper. He most likely bought it at a discount, so when he buys the property from you, he can file a satisfaction of mortgage, and then he has full title.
Read the note and mortgage. As long as you do what is agreed to on these documents, he CANNOT foreclose. He may try, but he will lose.
As far as the change orders, offer him the opportunity to get his own contractor to do what is required. Obviously he has agreed to pay some portion of the repair costs, so its only fair that he be given the opportunity to save himself some money. If you are also paying a portion, it will save you money too. Just ask that you be allowed to veto HIS worker’s plans.
If he stalls you by refusing an alternative, you may have grounds for a specific performance law suit, but it will cost you money and time, so try to work it out.