All Forum Posts by: Jonathan R McLaughlin

gotta say, thats pretty nuanced thoughtful sounding advice from this guy--giving you different ways forward to think about, different remedies and distinguishing between what is possible and feasible and allowing you to think about what you want. And he went to the actual documents with a knowing eye, giving you more leverage than you thought you had--they were being sticklers for EM delivery, and but didn't serve you properly. I certainly didn't see that coming! Most lawyers don't do all that and I think I'd keep him as a lawyer 

This is a great thread with lots to learn in it, so thanks for putting yourself out there @Joseph Parker. I come from a family of realtors and lawyers (no jokes please :) ) and I just went and re- looked up the national realtors code of ethics: A few of the paragraphs might interest you:

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. (Amended 1/01) [listen]

Not sure how you feel, but I sure wouldn't feel like I was treated honestly especially about the "I'm agent for both of you" poppycock.

REALTORS® may represent the seller/landlord and buyer/tenant in the same transaction only after full disclosure to and with informed consent of both parties. (Adopted 1/93)

This guy never informed you about a huge deal that he was related to the seller, and in his later correspondence he relied on that relationship to try and influence you. Lack of disclosure and lack of true informed consent. He even said to you he represented you equally! Boo!

Glad you are at peace with the learning lesson and your own role. You will go far I suspect. And reporting him seems the right thing to do for other potential customers. No matter the complications of the deal or his underlying motives, which certainly include the desire to help his family, this guy failed an important test of his profession. 

I am very curious what @Jay Hinrichs , as someone we all respect, thinks of the realtor and Broker ethics specifically, not just the legalities involved here?  Minor? Major? Just unfortunate due to special circumstances and/or a learning moment?

Forgot to say good luck @Joseph Parker ! and tactically speaking whether or not you would win any legal dispute is perhaps less important than do you have the ability to disrupt the sale? If you have that, you have some leverage to gain a remedy.

@Joseph ParkerYes that is correct, you never had an agent. And the simplest interpretation of the facts you presented is that you were willfully lied to multiple times. Its his father in law for goodness sake.

You may want to listen carefully to the BROKERS statement "that if you were my client I'd tell you to get a lawyer". Not sure why he would say that but I'd assume he is right and follow his advice. Maybe have your lawyer repeat it in his letter. 

Here is an emotional response, with no legal (or even good) advice given:

If you want to be a pain--and I can see some real justification for doing so--pay your lawyer to draft a letter saying you have not intention of signing the release and are considering your next steps. Email it to the broker/agent/seller and ask them for the contact of the title insurance they are using. Then wait.

I suspect the next conversation will involve some kind of "even though we don't think you have a case we would like to propose...."

Not sure if this matches the opinion of the more experienced if such a thing would matter, but I have to think it would put fear into them. Most people--even most licensed people--know just enough and don't go deep.

I think a good rule of thumb is "its never going to get better." What you see during the application process is the best of what you are going to get. Everyone is showcasing their best, so if their best behavior is making you uncomfortable don't go there.

@Vincent Meoli And I would check out parts of Western and central MA before going out of state...the numbers are much different and some towns are thriving

@Vincent Meoli have some similar experiences and graduated to commercial so to speak. Happy to talk offline. 

But I'm gonna push back on the  "taxachusetts" idea which is tired and not grounded in reality, especially when you think about the economic power of the state, the relatively decent infrastructure, high housing costs and  generally working public sector (I know, I know...but travel to some other places). Take a look at this:

https://wallethub.com/edu/best-worst-states-to-be-...

We are right in the middle of the pack, and our quality of life in general is higher than most of the states above us, so we actually get a lot for our money, and we should stop complaining. People can argue about how that money is spent, of course, but the overall burden is not high. You can make money here.

When I'm feeling cheeky, I like to respond to realtors who say some variation of "rent is X but you can easily get Y" with a very innocent look and say "oh...why haven't they done that?"

you could delay the tax hit by converting part of the 401k to a conventional IRA then withdrawing. Same tax hit but I believe they don't withhold the taxes up front like they do in a 401k, so you have more time.

Thanks for your thinking on this. Would like to attend.

@Clarence Bell You can utilize a partnership, with one partners self directed IRA investing in the LLC and one partner using 'regular' funds. It was complicated, and relatively expensive to set up and required the diligence of an IRA custodian and tax professionals. I wouldn't think it would be viable for a smaller deal (under 500K =/-?) but YMMV. Not a lawyer, tax accountant etc. and this is neither type of advice. But a few things to consider if you go this route:

1) what you said in your post almost certainly won't work if both sets of funds are yours. You are not allowed to self deal.

2) UBIT will add additional costs but this is often overplayed as a problem

3) You can structure an investment note to deal with #2  but this is an extra step most banks won't be familiar with or want to deal with. Think "investment bond with equity kicker" if you want to ask someone who can be more lucid about it. 

4) Transparency, transparency transparency with the bank especially.

Hope this helps, it is possible.