Norcross, GA · Member since 2017 · 36 posts · 5 votes
Situation: in 2017 I got a property under contract for $60k. Found a buyer, who paid $1000 earnest money to the owner. Owner was elderly, and his wife had passed away in 2010 without leaving a will. So estate had to go through probate. I got an attorney who did a lot of work(for more than a year) to get it through probate.
Around the end of 2018, this elderly owner got Alzheimer's and died. Now his daughter is refusing to honor the agreement. She is claiming that he had dementia at time of signing the agreement, which is not true.
She is demanding that I remove lien on the property.
What would you do in this situation? Thanks in advance.
Investor · Westchester, NY · Member since 2014 · 96 posts · 57 votes
6y
What does the Contract provide for with respect to non performance by seller? Practically speaking courts will rarely grant specific performance (force a sale). You may have a case for some form of monetary damages if you can show concrete losses. This is going to be a state law matter so consulting with a local attorney is necessary. Most buyers will just move on in these situations as the lawsuits are rarely worth the cost and outcome.
Hightstown, NJ · Member since 2017 · 25 posts · 7 votes
6y
@H J. I know you spent allot of time and effort on this deal, however I would let the deal go! By you taking the “higher” road (even though you would be in the right to fight this) watch how you get a BIGGER deal down the line. Just my opinion..
Rental Property Investor · Central Kentucky · Member since 2019 · 67 posts · 43 votes
6y
I'd move on... as this can get a bit sketchy. Remember, especially in real estate, word travels fast. I'd personally rather lose a few bucks or break even than have my name tied to a dispute with a deceased person's family over the house they'd hoped to inherit. Million bucks? Yep, fight it out. 60k.... Nope.
Rental Property Investor · Brooklyn, NY · Member since 2016 · 219 posts · 174 votes
6y
@H J. Like most on here have said, it would require a lot of money and time to fight for this deal, so honestly it may not be worth it. But I do think like you have leverage here by having the Memorandum of Agreement recorded.I would kindly encourage her to compensate you for the earnest money, your time and the probate attorney fees.
Rental Property Investor · Brooklyn, NY · Member since 2016 · 219 posts · 174 votes
6y
@Sam Shi it's not that cookie cutter when you record a memorandum of agreement. There's a reason why the inherent owner is "demanding" he remove the recorded agreement. Otherwise if your theory holds true, she would just have to show one or two death certificates to the county or her attorney and get it resolved without @H J.. But again she is demanding that he remove the agreement and its most likely because she needs it to take a clear title. Wether the contact is voided or not there's a recorded agreement filed with the county, that just doesn't disappear so easy.
Remember a memorandum of agreement is informing the public that there is an agreement in place between you and the seller and it gets recorded with the county for everybody to see. Its also a tool used to protect the buyer from anybody going behind the buyers back.
Good suggestions. I have not paid the buyer the $1000 earnest money. I do owe it to them though and will pay them one way or another.
If you contract called for a $1000 EM and you did not pay it, your contract is most likely void, so this whole conversation is moot.
Could or could not but In this situation if you go back to the original story EM was exchanged to the seller in 2017 and the seller died in 2018. Right now, he just hasn't been able to pay his buyer back the EM he put up for the deal.