Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Patrick Meade

Patrick Meade has started 1 posts and replied 25 times.

Names have been changed not sure if I can post it legally.. the guy is changed to slimmy Investor, the real estate agent is changed to real estate agent/wife and the llc was changed to Investment llc. I’m not going to post the entire thing but I just wanted to show y’all that everyone was right I have a super strong case! 

Breach of Contract, Tortious Interference with a Contract, Fraud, and Suit to Quiet Title.

In relevant part, that contingency states “This contract is contingent on confirmed or written notice of seller's job transfer and move from Houston to Denver, CO. If job transfer and move to Denver, CO is declined seller has option to terminate contract free of penalty.” On January 9, 2018, Slimmy investor (hereinafter “Investor”) filed a Memorandum of Contract in the property records of Harris County on behalf of Investment llc. This Memorandum was notarized by The real estate agent/wife, a party with in interest in Investment llc in direct contravention of the statutes governing notaries.

1

Unfortunately, my Client was not offered the job in Denver and remained in Houston. This Investment llc was informed of at least as early as February 2018. My Client, therefore, informed Investment llc that the contingency had occurred. In 2019, my Client attempted to sell the property only to discover that Investment llc Memorandum still clouded his title, preventing the sale. He contacted Investor and verbally asked him to remove the cloud. He declined. On March 6, 2019, my Client sent an email to Investor again asking that the cloud be removed. Again, Investor declined. At present, Investment llc continues to cloud title to my Clients Property. This violates the law. Additionally, by requiring money to do what the law demands, Investment lllc through its agent is committing extortion.

Originally posted by @Bryan Devitt:

I would love to know where he can't up with the number $3460. It is oddly specific. Personally I would file every complaint I could with everyone I could just to teach them a lesson. Maybe you get money out of it, maybe you don't but I tend to care more about principle than money when possible.

 Don’t forget the .40 cent.. I can’t figure it out either. He put zero in earnest money, had no money wired to title, wasn’t advertising it anywhere, didn’t put it on a mls, told me he was buying it as a rental property. He did spend 10 dollars in gas to come look at it and 16 to file the memorandum. So the way I see it he has 26 bucks and an hour of his time in this deal. After I hit him with all the facts in this with the notary fraud the contingency that was clearly met why he would still risk a lawsuit over 26 bucks.. makes no sense. I spoke with an attorney and a demand letter is going out today I will post what the attorney is saying. It’s basically what all of you have said.

Originally posted by @Shahriar Khan:

@Patrick Meade .. First off sorry to hear your situation .. Below are my 2 cents being on both side

Situation: Both Buyer and Seller agreed with Terms during the point of signing the contract . Buyer was incentivized by a cost (less than market minus transaction cost)  and Seller was incentivized by a cash sale thus both party  signed the contract . 

What happens what one party falls behind:  If buyer cant come through the agreement then they will loose Earnest Money and if seller cant come through then there is a fee/cost of marketing . Most of the large ones do not charge and some may (beyond any special provision in place)

In your case: My understanding is that , you have a provision in place which gave you an exit and/or you didnt intend to bypass the original buyer due to a high price so you signed a new agreement after initial contract ended.

Next step: You can go after is couple of ways in parallel and/or in series 1) RE Attorney  2) Social media 3) Civil lawsuit and/or a mix of all 3 

1) RE Attorney ...happy to share local folks that i work with . You send certified demand letter with some time to response and then civil lawsuit to both husband and wife (less then a month and may cost around 300-500). You should be our of within 60 days ish 

2) Social Media - Post the contract (only date) and call them out here along with everyone in their company food chain. Use both BP and Facebooks. Probably they are part of large facebook groups as well (e.g. 713Real Group On Facebook) 

3) Civil Lawsuit - See #1 above 

Reputation matters and so does a clean business practice on both side. Keep us posted. 

 Yes, I didn’t intentionally bypass the first buyer, things didn’t work out for me on the new job in Colorado so I called and canceled the contract over a year ago. I didn’t even know he was still on my title until I decided to upgrade my life in Texas. My career keeps me in Texas there really is no better place for me in this industry. That contract with the investor was out of desperation to return home on a once in a lifetime opportunity that did not work out. 

Originally posted by @Jay Hinrichs:
Originally posted by @Shawn Ackerman:

@Patrick Meade This is not so uncommon.  This cloud achieved exactly what it is intended to do.  He knew that you could not sell the property without his knowledge considering you had a binding contract that was not fulfilled.  You may just want to pay what he is requesting or contact an attorney to review your contract and potentially go through litigation.  In his mind, when you were ready to sell, you would contact him and he'd buy the property.  So instead of asking you to contact him when you are ready to sell he clouded the title.  If you need to sell quickly, make an agreement with him, if not seek an attorney's assistance with the matter.  Not sure about the laws in Texas but you could very well end up paying for the attorney and having to pay him all or a portion of what he is requesting to have the cloud lifted.  All the best.  Persist and you will WIN!!!

this is just sick..  contract says is void if he does not get the job.  this a great case study of what not to do with unlicensed wholesalers that claim they solve problems..  this guy has major liability in my mind.. not only Notary fraud.. but clouding title and causing harm to the seller.  but like you said he knows he can try to extort 3500 out of this seller.. this is why Sellers should NEVER sign contracts with wholesalers or allow them to be notarized  you have to notarize to record them..  thats why these slim balls do this.. just for this exact reason. 

So anyone reading this and of course there wont be many since its innocent people that get taken and they are not on BP .  DO NOT notarize any sale contract with anyone.. its not necessary to be enforceable.. but its necessary to record.  Also clearly denote in your contact that this contract is null and void if it is recorded.  Lastly if you dont have an agent then this is when you need to go to an attorney before you sign anything..  this is just so wrong on so many levels... what a scumbag and people wonder why wholesalers have such a bad wrap..  they come on with the HEY we solve problems  its just BS  total BS

 Actually, I just found him on here.. so not all BP people are honest. 

Originally posted by @Jay Hinrichs:
Originally posted by @Patrick Meade:
Originally posted by @Jay Hinrichs:
Originally posted by @Shawn Ackerman:

@Patrick Meade This is not so uncommon.  This cloud achieved exactly what it is intended to do.  He knew that you could not sell the property without his knowledge considering you had a binding contract that was not fulfilled.  You may just want to pay what he is requesting or contact an attorney to review your contract and potentially go through litigation.  In his mind, when you were ready to sell, you would contact him and he'd buy the property.  So instead of asking you to contact him when you are ready to sell he clouded the title.  If you need to sell quickly, make an agreement with him, if not seek an attorney's assistance with the matter.  Not sure about the laws in Texas but you could very well end up paying for the attorney and having to pay him all or a portion of what he is requesting to have the cloud lifted.  All the best.  Persist and you will WIN!!!

this is just sick..  contract says is void if he does not get the job.  this a great case study of what not to do with unlicensed wholesalers that claim they solve problems..  this guy has major liability in my mind.. not only Notary fraud.. but clouding title and causing harm to the seller.  but like you said he knows he can try to extort 3500 out of this seller.. this is why Sellers should NEVER sign contracts with wholesalers or allow them to be notarized  you have to notarize to record them..  thats why these slim balls do this.. just for this exact reason. 

So anyone reading this and of course there wont be many since its innocent people that get taken and they are not on BP .  DO NOT notarize any sale contract with anyone.. its not necessary to be enforceable.. but its necessary to record.  Also clearly denote in your contact that this contract is null and void if it is recorded.  Lastly if you dont have an agent then this is when you need to go to an attorney before you sign anything..  this is just so wrong on so many levels... what a scumbag and people wonder why wholesalers have such a bad wrap..  they come on with the HEY we solve problems  its just BS  total BS

 He didn’t notarize the sales contract,  he was sneaky and had his wife notarize a memorandum of contract and filed it electronically without my knowledge. 

so you did not sign the memorandum ???  I know its no consultation but I would have this guys butt..  I would file complaint against wife with TREC I would turn them in for notary fraud . and then I would bring suit against him for Slander of title.. and go for big bucks teach the leach sucking low life a real lesson..  

 I did not, had no idea it was on there until a year and some months later when I tried to sell my house to buy a bigger house with a mother n law suite so my dad could come stay with me when it gets cold up north. I’m guessing I’m going to lose my buyers and they were good.. conventional loan 46k down offered me 2k over list price with no contingency or seller contribution. 

The only problem I see is litigation costs and the lack of garnishments in the state of Texas. I could try for her notary bond but outside of that 10k I’m out of pocket and will probably never see another dollar. 

Originally posted by @Jay Hinrichs:
Originally posted by @Shawn Ackerman:

@Patrick Meade This is not so uncommon.  This cloud achieved exactly what it is intended to do.  He knew that you could not sell the property without his knowledge considering you had a binding contract that was not fulfilled.  You may just want to pay what he is requesting or contact an attorney to review your contract and potentially go through litigation.  In his mind, when you were ready to sell, you would contact him and he'd buy the property.  So instead of asking you to contact him when you are ready to sell he clouded the title.  If you need to sell quickly, make an agreement with him, if not seek an attorney's assistance with the matter.  Not sure about the laws in Texas but you could very well end up paying for the attorney and having to pay him all or a portion of what he is requesting to have the cloud lifted.  All the best.  Persist and you will WIN!!!

this is just sick..  contract says is void if he does not get the job.  this a great case study of what not to do with unlicensed wholesalers that claim they solve problems..  this guy has major liability in my mind.. not only Notary fraud.. but clouding title and causing harm to the seller.  but like you said he knows he can try to extort 3500 out of this seller.. this is why Sellers should NEVER sign contracts with wholesalers or allow them to be notarized  you have to notarize to record them..  thats why these slim balls do this.. just for this exact reason. 

So anyone reading this and of course there wont be many since its innocent people that get taken and they are not on BP .  DO NOT notarize any sale contract with anyone.. its not necessary to be enforceable.. but its necessary to record.  Also clearly denote in your contact that this contract is null and void if it is recorded.  Lastly if you dont have an agent then this is when you need to go to an attorney before you sign anything..  this is just so wrong on so many levels... what a scumbag and people wonder why wholesalers have such a bad wrap..  they come on with the HEY we solve problems  its just BS  total BS

 He didn’t notarize the sales contract,  he was sneaky and had his wife notarize a memorandum of contract and filed it electronically without my knowledge. 

Originally posted by @Theresa Harris:

He was going to buy it a year ago at 15% below market value.  A year later you have a new seller paying $2K over the asking price.  The first guy from last year won't give you a clear title unless you pay him $3460.  The fastest is to pay him and move on.  I don't know what the sales price is, so using fictitious numbers if the house is $100K, assuming market value didn't change of the course of a year), buyer 1 would have paid $85K and buyer 2 is paying $102K...even after the $3462, you are still much further ahead.  How much will an attorney cost and how much time will it take dealing with buyer 1?

The other option is to tell the first buyer the market has changed over the last year and the new buyer is paying $102K (using my made up numbers).

 He literally told me “pay me 3462 or sell me the house for contracted price or sue me” and hung up... well, I’m not paying a crook anything. So looks like I’m going to sue him.

Originally posted by @Guy Gimenez:

If all is exactly as you say it it, you may want to visit with an attorney regarding a claim of slander of title. If the former buyer continues to cloud title with not right to do so, and he harms you by causing you to lose a buyer and the ability to purchase a new home, you may just have a good case. Of course, it will cost you plenty to win but it may be worth it. 

The contract originally dated to close the day we signed the contract, over looked by me...( I’m not a real estate guy.. I’m an engineer. ) he text me later and said “hey I messed up on the close date I’ll change this to TBD because we don’t know when the job offer will be extended “. I didn’t even think about what that does to a contract but even now I would still sign it because my contingency was in place and that should have ended it. 

Lots to respond to, 

 first, the llc is only owned by the husband and wife, no one else listed. She also works for a real estate company here in Houston and used that companies contract in the purchase. So the llc was buying my home using the broker license of the “real” real estate company. 

Second, I contacted the broker, which by the way was almost impossible. She doesn’t answer her phone if you call the office phone none of the options work.. I did finally get ahold of her and explained my situation she seemed concerned and said she would talk to them but I haven’t been able to reach her since. Even sent pictures to her cell phone of the contract and memo she hasn’t responded. 

Third, Yes I will be taking the advice of you guys and get a real estate attorney. 

Thanks everyone For taking the time to respond it really is appreciated. I’m so stressed I can’t sleep haven’t eaten in days and my mood is completely off.. I had no idea how little stress I had until I came across this nightmare. This has seriously consumed me, I’m literally at work researching and trying to figure out if or how this could be my fault. The answers provided have calmed me. And I’m truly thankful for that.

Someone stated I should just pay him and end it.. I would rather pay an honest man 10,000 and lose my case then to pay a crook 4000. 

So I’ve come to terms with having to sue this guy.. that’s fine I have more than enough money to get that done even if it’s at a loss financially for me. 

My question is, if I sue I could probably collect damages from the notary bond? Could I also go after the insurance the broker? The broker has to have insurance for this right? The contract list that firm on the bottom..