Posted by lukeNC on March 24, 2006 at 22:35:04:
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Real Estate Broker Fraud - Posted by Theresa
Posted by Theresa on March 24, 2006 at 10:15:38:
I recently purchased a home and the mortgage broker told me that I could get money back at closing to make the necessary repairs on the house and the seller agreed to increase the price of the house so money can come out at closing so repairs could be made.
The seller found out that what the real estate broker did was illegal and they have forfeited on giving me the remaining money that they agreed to (I have it in writing). At closing, they did give me a check for $1300 and after they closed on their home they would give me the remaining monies. They still owe me $1900 and I’m thinking about taking them to court but don’t know if what I have in writing will work.
Need follow-ups.
Re: Real Estate Broker Fraud - Posted by gman
Posted by gman on March 24, 2006 at 19:18:11:
If you knew it was illegal, then you are SOL. If the broker told you it was ok, then you can always file a small claims suit against the broker. As was pointed out already, a contract involving something illegal cannot and will not be enforced by a court.
Re: Real Estate Broker Fraud - Posted by James Strange
Posted by James Strange on March 24, 2006 at 14:15:31:
If this was done correctly your repair money would have been placed into an escrow account at closing. The lender would have known about it and it would be on the up and up. However if you had a side contact, addendum or what ever to hide it from the lender then it is fraud. If that is the case then go ahead and sue them your testimony could go something like this.
You. Your honor me and the seller had a contact and will not give me my $1900.
Judge. Let me see your purchase contact.
You. Sorry, it not in the purchase contact it is on a separate contact.
Judge. Why a separate contact?
You. I did not want the lender to know about this.
Judge. Do you know that is fraud?
You. Well yes but I want my money.
Judge. Do you know that you can not make a contract for illegal activity?
You. Does that mean that I don’t get my money?
Judge. What it means is that you have committed several crimes and I will be submitting the court transcripts to the DA’s office.
scare tactics… - Posted by lukeNC
Posted by lukeNC on March 24, 2006 at 15:25:58:
Purchase price can be raised to include repair costs, its done all the time. If the house needed that many repairs, the lender would not have funded the loan. Even if it was shady, $1900 is not enough to get the over-worked DA involved.
You’re right that what they should have done was set up an agreement to put the extra money in escrow.
In this instance, the seller and broker appeared to have conspired to get more money out of the deal and stiff the buyer.
Before getting an attorney, I say go ahead and let the RE broker know that I am notifying the RE commission on them. That should get them to cough it up.
Re: scare tactics… - Posted by James Strange
Posted by James Strange on March 24, 2006 at 19:08:17:
One thing that we don’t know is if this was the legal way or not. Theresa posted “The seller found out that what the real estate broker did was illegal.” To know the corrent answer to give we would need to know more. Lets face it this could have been set up and done in a legal manner. Then someone told the seller that is was not. After all you do not have to be in this business long before you hear “that not legal”. It could be bad advice or as mentioned just plain greed.
The mortgage broker could be the one who is working with the seller. I am sure that who ever is regulating them would take an interest in this.
As far a hoping to get a lazy DA who will not go after a small case of fraud. I am not going to take that chance.