Is an offer with a real estate company legal?
There is some land being sold next to where my husband grew up that is being sold through a federal bankruptcy court. I called a local real estate agent who made an offer to the listing agent. The listing agent called the attorney’s office who represents the bankruptcy court and they put my offer before a judge who accepted. I had to pay a "retainer" to show my good intentions ($500.00) and sign a contract which stated I would pay the rest within 30 days. They cashed my check, and I started all the loan paperwork and have paid a little over $800.00 in closing costs. All paperwork was to be completed (deed exchange, etc. ) tomorrow (two weeks earlier than my 30 days) and the real estate company called today and said the attorney’s office contacted them to say they have another offer and my only recourse is to bid higher. Apparently, I have no legal leg to stand on because the realty company did not ask for a letter of acceptance. Do I have any other recourse at all?
If I’m following this scenario correctly, it sounds as if the real estate agent was selling the property acting as an agent for the Trustee in Bankruptcy. If the Trustee retained ownership of the property on behalf of the bankrupt estate, it is entirely within the trustee’s power to void transactions for any reason, including failure to obtain proper documentation. It is also within the trustee’s authority to void a transaction in favor of another transaction that would result in more money to pay the bankrupt’s creditors.
If that’s the case here, you probably do not have recourse. However, if the real estate company was representing a foreclosing bank and not the trustee, you may have a claim for specific performance. It sounds to me, however, that the trustee retained the property for the benefit of the bankrupt estate.
January 27th, 2010 at 5:51 pm
Tell the realtor you are going to call the state regulation and licensing office and tell them what is going on unless you close as scheduled
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January 27th, 2010 at 5:58 pm
If I’m following this scenario correctly, it sounds as if the real estate agent was selling the property acting as an agent for the Trustee in Bankruptcy. If the Trustee retained ownership of the property on behalf of the bankrupt estate, it is entirely within the trustee’s power to void transactions for any reason, including failure to obtain proper documentation. It is also within the trustee’s authority to void a transaction in favor of another transaction that would result in more money to pay the bankrupt’s creditors.
If that’s the case here, you probably do not have recourse. However, if the real estate company was representing a foreclosing bank and not the trustee, you may have a claim for specific performance. It sounds to me, however, that the trustee retained the property for the benefit of the bankrupt estate.
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