Realtor Problems

[michelefry]

My husband and I were working with a Realtor and things recently went badly wrong. The property that we were looking to purchase was originally a mobile home, but we were told by the realtor that if a mobile is on a foundation or if it is built onto so that it no longer looks like a mobile, then there is no problem getting a traditional mortgage. Our realtor never communicated with our lender and low and behold, 4 days before settlement EVERYTHING fell through. Once the appraisal came back, the lender refused to finance it because it was once a mobile home. At this point we were heartbroken, out $325 for our appraisal and still owe $310 for the home inspection. The realtor claims we owe her a "transfer fee" for her office typing up paperwork. And we still owe the home inspector fee. Since she did not perform her job as our Buyer's Agent, do we have any right to request that she eats any of these fees? We are reasonable people, but we got taken across and feel that her ignorance cost us a great deal of money. What can we do, legally? Thank you for your time!

[Greg]

You do not owe that agent any fees, she did not do her job properly. Now, if you want to save the deal, talk to the lender. Trailers are personal property, that is why the lender won't lend on it, it is too easy for you to remove it from the property should you go to foreclosure.

Typically, if the trailer hitch and wheels are removed and the property is recorded with the county as real estate a loan can be gotten. just don't put your head in the sand and complain about. Try to fix it.

[michelefry]

Thanks Greg!

We have since realized that it may have been a blessing in disguise that we didn't get the property. It really wasn't a good investment and unfortunately we didn't get that information from our realtor up front. At this point we're trying to move on (without that realtor) and find a good property.

When you say I shouldn't owe this agent any fees, would that also include the home inspection fees? My agent personally recommended the inspection company and therefore vouched that we would pay the inspector at closing. The inspectors invoice states that if the buyers do not pay then the buyers agent is liable. The inspector did his job and should be compensated, but I feel that the realtor should pay at this point after all the mess she caused us.

Thanks for your reply!

[TahoeResource]

Technically, if you didn't sign an authorization for your agent to order the home inspection and appraisal, you shouldn't be liable for the costs. The home inspection company and appraiser would go after whoever ordered the inspections, which would have been your agent in this case.

Your agent also did not earn a commission because they did not complete the sale, and they cannot charge you administrative fees without your prior consent. Your agent should have conducted a reasonable inspection of the property prior to writing the offer, and made the determination of whether this home would be considered real property (attached to a permanent foundation) from a lender's point of view before running up the costs of investigations...

Brian

[Thesa]

Manufactured homes are not trailers first of all - and although your lender does not lend on them there are others that do - this should have been more than apparent on the home inspection, the listing and the appraisal.

Most contracts read that the home and the buyer must qualify for the loan. In this case the home did not - you have fulfilled your obligation in sorts.

You may want to consult an attorney for your answer as non of us are attorneys - but chances are - you are not obligated - unless your lender had a program for the home.

Manufactured homes on a foundation are generally easier to obtain financing on but they will always be a manufactured home and most lenders require them to be de-titled at the time of funding - which most title companies can do at the time of closing.

[kwaltersmi]

Your obligations should all be in writing. The appraisal fee, the inspection fee and any bogus broker fee should be in a contract somewhere. In my opinion, you may be liable for the inspection fee because the service was rendered. It's not the inspectors fault that the deal fell apart.

As far as the buyer's agent's "transfer fee" goes, I'd ask to speak with his/her broker. And you may also want to speak to someone at the local real estate board. Of course, you should carefully review your buyer's agency contract as well. The answer is probably in there somewhere.