We had a horrible experience that cost us months of worry and thousands of dollars as we tried to buy in 467 Pacific St. The facts relate to a specific unit which had undisclosed estate issues. I am posting this to spare anyone else the hassle we went through. We were in contract and board approved at 467 Pacific. A week before close on unit 21 sale was postponed indefinitely. Their lawyer was... [more]
We had a horrible experience that cost us months of worry and thousands of dollars as we tried to buy in 467 Pacific St. The facts relate to a specific unit which had undisclosed estate issues. I am posting this to spare anyone else the hassle we went through.
We were in contract and board approved at 467 Pacific. A week before close on unit 21 sale was postponed indefinitely. Their lawyer was completely uncommunicative, did not respond to any phone calls or emails.
After 2 months of TOE letters, we terminated the contract requesting return of deposit - Another week of non-communication, we got the funds but only after threats of litigation and reporting him to the bar association.
The sellers signed a contract which they couldn't act on. At all cases of broker, attorney and seller they misrepresented their ability to sell based on estate problems.
Finally the building policies at 467 Pacific St were problematic and incoherent (between written policy and verbal policies)
We found something else and happily closed in 3 months.
Apart from time of essence or a lawsuit for specific performance - I'm unaware of what else could have been done. Open to the RE lawyers - what advice do you have?
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Response by JR1
almost 8 years ago
Posts: 184
Member since: Jun 2015
Estate sales are complex. This happens pretty frequently, one party to an estate wants to sell and thinks the other heir is also down. But the other heir turns out is now, very messy.
"The sellers signed a contract which they couldn't act on. At all cases of broker, attorney and seller they misrepresented their ability to sell based on estate problems. "
This comment raises an interesting question about the liability of parties to a transaction. The seller signs the contract so of course they would be potentially liable for an inability to close the transaction if they were the cause. But what liability would the seller's broker or attorney have in such a case? Although their names may be indicated on the contact, they are not signatories and therefore not agreeing to the terms of the transaction.
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Estate sales are complex. This happens pretty frequently, one party to an estate wants to sell and thinks the other heir is also down. But the other heir turns out is now, very messy.
This is why you need a good lawyer who will figure all of this out during due diligence (https://www.hauseit.com/nyc-real-estate-due-diligence-report-sample/) before you sign a contract.
If you don't have a good lawyer, interview a few (https://www.hauseit.com/questions-to-ask-your-real-estate-attorney-in-nyc/) and don't just take the first referral you get.
"The sellers signed a contract which they couldn't act on. At all cases of broker, attorney and seller they misrepresented their ability to sell based on estate problems. "
This comment raises an interesting question about the liability of parties to a transaction. The seller signs the contract so of course they would be potentially liable for an inability to close the transaction if they were the cause. But what liability would the seller's broker or attorney have in such a case? Although their names may be indicated on the contact, they are not signatories and therefore not agreeing to the terms of the transaction.
Anyone have thoughts or examples?
http://realtormag.realtor.org/law-and-ethics/law/article/2000/03/top-10-legal-issues-facing-brokers