Real Estate Law USA.com

If a buyer is under contract to buy a REO property and decided the day of closing they want to terminate, other than losing their earnest money, what is the worst that can happen? Can they be sued for specific performance? In this case, they have decided at the very last minute they want to purchase another property that has recently become available.

Can a realtor help a friend with a real estate contract and accept a Finders Fee from the seller? And not have to pay their broker? Or have it even go thru the broker at all?

A verbal agreement is made between 2 individuals to lease a property for a period of 6 months. The lessee requests a real estate brokers contract. The other individual is not a broker and outsources to an agent to complete the transaction in exchange for commision.

The Florida real estate broker wrote a contract for a transaction to lease the property. Money was transacted through her personal business account and she recieved a commision of $1800 for completing the deal.
The transaction went sour and the property fell through so the individual, lessee, wants his leasing deposit back however the money had meanwhile been withdrawn in cash and spent.

he wants his money or he is threatening to sue.
What are the legal implications for the individuals involved??
the total of the transaction is $14,500.
the individual who set up the deal failed to present the property or have any legal jursidiction to lease the property as it was a hotel! the broker was aware the address on the contract was for a hotel. The other individuals name is not mentioned anywhere however in the contract but did inititally set the deal up verbally with the prospective tenant.
please note the individual who verbally set up the deal is not written into the contract at all… it is between the real estate broker and the prospective tenant.

transaction was terminated as when the lessee arrived to check into hotel at the contracted room rate, the room was not the room initially discussed verbally in the transaction and was unavailable.

who is responsible? the broker documented as the lessor in the contract recieving commision from the individual who orchestrated the deal?? or the individual who, despite being contractually binded or mentioned in any documents, verbally orchestrated the deal??
the lesee is threatening to sue for fraud. He is obviously entitled to the return of his deposit but because it was spent is seekign to pursue legal options to have charges laid.

Approximately one week ago I offered mediation as an alternative to my filing suit against a party. They’ve replied a couple times that they’re still evaluating it as an option for them. How long should I wait? Any thoughts? I’m prepared to file my court action, but would definitely prefer to resolve this as amicably as possible in a mediation. I want to be fair in allowing time for them to evaluate but also do not wish to be strung out indefinitely.

Please read the whole question, as there are actually several issues:

1) We had a sales contract on our condo, so we bought a house. 1 week before our closing, our sales contract fell through so now we own 2 properties. We have now received a second signed contract for our condo. The buyers attorney now states she has 5 days to "attorney review" and can cancel the contract within those 5 days for any reason. Our understanding was the 5 day attorney review was to make sure all the forms were complete properly, to change interest rates or closing dates, add missing initials…etc etc.She is basically saying the 5 day attorney review allows the owner 5 additional days to consider whether she wants the property. She now states she may not want the property due to certain condo bylaws regarding bike riding for her kid. Can they legally cancel the contract within 5 days for absolutely no reason, with no consequences? If she cancels the contract within 5 days due to no fault of my own, can I keep her earnest money? If the contract does fall through, for our next contract, can we strike out the 5 day attorney review and cancellation clauses, or be more restrictive as to a) why the contract was cancelled, and b) indicate earnest money will be forfeited upon contract cancellation for any reason (that would be the third contract then to have failed to close on and we have 2 mortgages and a monthly assessment. We should be compensated for buyers who don’t get financing because they were not qualified enough, and for buyers who just get cold feet within the first 5 days. Please respond only if you know Illinois real estate laws. This is as close as I can get to finding out - If someone can point out the exact references for the 5 day attorney review and what is required, and when the seller can keep the earnest money it would be greatly appreciated.

The following sets forth common questions and answers involving the practice of real estate in Illinois. References to the “Act” are to the “Real Estate License Act of 2000" and references to the “Rules” are to the “Rules for the Administration of the Real Estate License Act of 2000.” It is strongly recommended that every licensee carefully study and review the Act and the Rules.

The Act and Rules may be found on the DPR website:

* To find the Act: On the main page click on “Legal” then click on “Illinois Compiled Statutes” and then scroll down to “Chapter 225" and click on “Act 454.”

* To find the Rules: On the main page click on “Legal” then click on “Administrative Rules” then scroll down to “Title 68 Illinois Administrative Code” and click on “Part 1450"
Thanks for the info. but from what I have read, they have the right to request the condo bylaws any time they want, up to the time they sign the contract if they want to read them to make sure there is nothing they disagree with. They should not be allowed to sign a contract and then back out saying "my attorney reviewed the bylaws and we don’t want the property any more because we can’t put a bird feeder on our property". From other info that I read, attorney review is ONLY to make sure people signed where they were supposed to sign, that there is nothing illegal or unusual with the contract, to extend or shorten the financing or closing date, and other issues so as easements and home inspection resolution. After someone signs a valid contract, they can’t back out and say, I don’t want it now because I am exercising "attorney review". She is claiming our bylaws are too restrictive because her kid can’t ride her bike wherever she wants to on the property. That is not a valid reason.

I’m in a dispute with my apartment management company at the moment over a maintenance request. If I needed advice about terminating the lease or if I needed to take other legal action against the company, would I need a real estate lawyer or one who deals with contract law?

Thanks, and Cheers!

I signed a contract on a property with one contingency being that I approved the home inspection. The inspection showed the house was a lemon and I backed out of the contract.

I feel guilty because the real estate agent spent a lot of time with me looking for properties, doing market comps, and other related activities.

Should I send the realtor a check as a thank you for spending time with me even though the deal fell through? If so, how much would be reasonable?

sell contract to other investors, I just started out as a BIRD-DOG found a mentor & company that will help me, did some due dillegence even pointed out some abandon buildings and a street full of house that maybe potential sales.I could not get in touch with my mentor for a week and a couple of days. I have to find more partners and mentors. I have to start all over again. where can I FIND SCAM FREE PROGRAMS or Real mentors whom will walk me threw deals. I thought Real Estate is a relationship business not burn your bridges business. I am looking to leverage myself to eventually partner and do deals on my own.(what is the fastest way to make money in Real Estate?) short-sales are 3 months? I thought about becoming an agent but I was told it my get in the way of doing certain things in Investing? I am honestly looking for a start, advice and building serious partnerships.
All answers will be very much appreciated.
looking for as much info about Real Estate/Creative Investing.
Thank you Precious for your answer!
Francis D, perhaps you did not read, what I wrote properly? I did free due due dillegence when asked, my time is not for free and took mentor/Investor to the area of the available properties meaning deals!!! in exchange for hands on experience and a small fee. If you look at it, the investor/Mentor would walk away with a way more bigger percentage than me. when you are the learning of course, the teacher walk off with most of the money!

I am making an offer to purchase an apartment complex. My real estate agent has strongly recommended that I offer 1% earnest money to show good faith. I have bought a few properties in the past and have never offered earnest money, has never been an issue. This is my first time dealing with an agent. Should I offer earnest money? What happens if my loan falls through for some reason, would I lose the earnest money? Thanks in advance!

Can you tell me (on a standard Real Estate Contract) how much of a deposit is required (15%? 20%?) and when (how many days after our offer is accepted) is it due? Also, is the deposit still due if you have a Home Contingency? We need to sell our house, to have the money, but we could get a loan (if need be). Such a mess. Thanks for your help!
I am using a Realtor for the purchase of this house. There is a percentage due (it’s held in escrow until closing) approximately 3 days after Attorney Review. I need to know how much. I own two homes outright (no mortgages), I am taking equity on the home we are not selling.