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Updated almost 5 years ago on . Most recent reply

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Donald Powell
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Contract signed title clear now it's a problem

Donald Powell
Posted

I got a contract for a house signed. Sent info to title company, it's clear. Found a buyer, he signed my assignment of contract. When I call the seller to give close date, I'm told I have to talk to someone else, Her brother. Once I talked to him, he told me the house isn't for sale to you. He just put it for sale with someone else. My contracts are legal. The are elderly. How do I approach this. Or just let it ago?

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Frank Chin
  • Investor
  • Bayside, NY
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Frank Chin
  • Investor
  • Bayside, NY
Replied

I gone through this some years back and I was warned that this might happen to me. The way my lawyer explained it "the seller could sign a hundred contracts as they are no laws against it".

The way to protect yourself is to a public filing of the P&S contract at the county clerk's office and the first to file would take precedence against all others. If the other buyer didn't file, you run down today to file it, your contract takes precedence. If the other buyer beats you to it, you're out of luck. It's quicker than suing someone in court, cheaper, and chances are the other guy haven't got around to doing it, especially if he doesn't have an attorney. If more than one is filed, the first one filed is the first valid, then the following one in sequence.

I was doing an assignment and got the feeling the seller might pull something funny on me.

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