I've always been told, since attending those first real estate licensing classes 3 nights a week years ago, that it is important to make sure that all of the decision makers are gathered together during a listing appointment.
So what happens when a homeowner does not reveal to the listing agent that somewhere between her purchase of the home, and her decision to sell the home, she's danced to the tune of the Wedding march? In other words, the homeowner is now married, but was not when she purchased the home.
I guess after the belated congratulatory remarks, we're now left with some glitches in the transaction.
It is the listing agent's responsibility when doing an initial interview (after all, you MUST interview your potential sellers and buyers) to ASK ... among other questions ...
"is there another individual who might hold an interest in the property?" .
Go ahead and ask if the log sitting on the living room sofa is a spouse, and please don't assume he is just the deadbeat boyfriend.
"Mrs. Homeowner, thank you for asking me to list your home for sale... is there a Mr. Homeowner involved as well?"
A transaction I am currently involved in (I am representing the buyer) hit a glitch when it was announced by the seller that she no longer wants to sell because she is getting divorced. What?? Nobody knew she was married, let alone the listing agent, who apparently never noticed the shiny band on the third finger. She thought the guy sitting at the kitchen table with them was "just the deadbeat boyfriend".
In this case the seller wants to keep the home -- but ditch the significant other that we never knew existed in the first place. Yes, the happy couple is now getting a divorce, decided some time between her accepting our offer and our nearing settlement date.
But what to do when we are already under an agreement of sale with a ready, willing and able buyer? It leaves the buyer standing at the altar.
Luckily for me, my buyers are playing the field and not emotionally attached to the property. But, this Lovers Lane quarrel could have turned out much worse if the buyers were prepared to walk down the aisle and into their new home. We could have a "shot-gun" wedding and hold the seller to her binding agreement or sue for specific performance.
Some clever negotiating is in the works, and I'm sure I'll have an update soon on this War of the Roses transaction.
-------------------------
For more information on Lancaster PA Real Estate, or questions
about buying or selling Real Estate in Lancaster County PA,
please contact
Jeannie Kontis at (717) 330-5137
or email at Jeannie@JeannieSellsLancaster.com.
Search for Lancaster Homes for Sale at www.JeannieSellsLancaster.com
Jeannie Kontis, RealtorⓇ, is a member of the award-winning Bob Wells Realty Group of Long & Foster Lancaster Real Estate, Inc, and serves buyers and sellers of real estate throughout Lancaster County.
All content Copyright ⓒ 2009 Jeannie Kontis Homes in Lancaster PA - Real Estate in Lancaster County
Always a tough question, but invariably, it's something that you need to know. I think that just cutting to the chase as a matter of fact is the right thing to do. Good post.
Good luck, that sounds as though it could be a difficult situation to negotiate.
As an agent we need to do as much checking as we can. You can actually research whatever you need. And if you have an iffy feeling see if your title company can help you out...
Jeannine,
Great advice. Also community property laws vary from state to state.
What a shame for you... all of that work. Sorry to hear about it and I hope they find a replacement soon!
Hi Jeannie--I once had a buyer who got all the way to the Closing (actually on the drive to the Closing) only to find that the Seller was married and the wife refused to sign the OTP. We knew nothing of the Seller's marital status BUT, the listing agent DID and did not disclose this! We knew something was going on because the attorney had said that he was having trouble getting a clear Title but, had no idea that this was going to hit us! The Seller's wife had scheduled an appointment to come in that morning to sign but, didn't show up and they wound up having to threaten her with litigation saying that any proceeds from the sale of the home would go to the Buyer for his inconvenience and to the attorney for legal fees. She signed the next day!
We once did a refi that got all the way to the closing table before anyone realized the wife/co-borrower couldn't show up to sign the paper work because she was in a coma. I know that sounds crazy but a lot of times when you are dealing with a husband and wife for refinances only one party is the point of contact. The husband never mentioned any of this nor did we think to ask. It actually closed months later after getting lawyers involved to set up a power of attorney.
Looking forward to your update. If I were the buyer I would still be mad at them for wasting my time.
Michelle
I always ask the "who's on the deed" question when I list but didn't think about worrying about it for my buyers and I have run into some listings with only one owner listed. In my market I could just check the public records to easily find out if the people on the agreement match what's in public records. Great post!
I usually try to do a quick public records search before I list a piece of property or write an offer. Once, an out-of-town property owner met with me to list his vacant piece of land. I had already gotten a copy of the deed that showed a Mrs. I assumed that the lady traveling with him was the Mrs. I was wrong. I asked that she sign the listing agreement, as well and she hesitated. Finally, she put the pen down and confessed she was the girlfriend, not the wife.
I had a similar situation a couple of years ago with the mister. He didn't consider himself married anymore since they had been separated for several years. They had "forgotten" to get a divorce after the separated since they moved to different cities. Still legally married. It was difficult since the missus was 1,000 miles away.
Thank you for your comments everyone. I have a bit of an update at: Finding a Door to Walk Through . Two months later and I'm stil dealing with this!