Curt,
My buyers waited to close ONE day after my contract had expired with my sellers. My buyers also had contracted directly with my sellers PRIOR to the expiration of my contract with the sellers.
Do you smell what I’m steppin’ in???
When I took the buyers to court, the judge said “You know, even if they did go around you and it was fraud, it looks like to me that they were just trying to save five thousand dollars (my ‘assignment’ fee)”. I could not believe my ears. But, since I did not have a lawyer, I didn’t know where to go with an argument and he ruled in the buyers’ favor.
About 16 months ago I found a 4-plex in the local paper that was a great deal (asking $62k, ednded up appraising fro $105k). I signed it up with the intention of flipping it for $5k. I didn’t tell the sellers that I was going to do this and they got really hot! Anyway, I contracted for $5k higher (for a double closing) and got my earnest money of $500 back from my buyer.
WELL, the two snapperheads(buyers) that I contracted with, went around me and straight to the sellers to make a deal for a day after my contract with the sellers expired. I recorded a Memorandum, but it didn’t stop them from closing. Bottom line- I lost out on my $5k payday. I sued my buyers and lost. Thanks for the salt, judge.
Yesterday, I get a call from a process server. She wants to serve me papers because I am listed as a defendant in a foreclosure…THE TWO SNAPPERHEAD BUYERS OF MINE ARE IN FORECLOSURE! I must be living right or sumptin’. Maybe I can get this 4-plex afterall!
Good for you, I hate when people try to save a buck like that. By the way, I’ve never heard of a judge going against a memorandum like that. Any specific details or just a bad judge?