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 Dear George: I purchased a building in Texas. The sellers were friends, so I didn't use a real estate agent; that was a bad idea. After the closing (contract for deed) and paying $8,000 to the sellers, they stated they were not moving for a year. I was able to use only four small rooms upstairs. I moved in and designated the property as my homestead, but the sellers were still running their business downstairs. I have since vacated the property and asked for my downpayment back. The sellers told me that they weren't giving me anything. What do I do?
Answer: A contract for deed, sometimes called a land contract, is usually only as good as the seller is responsible and ethical. Hire an attorney to take a look at your contract and advise you.
Dear George: I signed an agreement with a REALTOR® for him to lease my building for me for three years. He demanded one month's payment for each year at signing, and I paid him $7,500 as demanded. Four months after moving in, his tenant vacated the building, claiming marital problems. When I contacted the REALTOR®, he said it was my problem. Should I report this situation to the Texas Association of REALTORS® before bringing this to my attorney?
Answer: The Texas Real Estate Commission is the entity that oversees real estate licensees and requires that each licensee comply with its rules as well as applicable state and federal statutes. Not all real estate licensees are REALTORS®. A REALTORS® is a member of a local, state, and national trade association. If the licensee with whom you dealt is a Texas REALTOR®, call the Texas Association of REALTORS® at 800/873-9155 and ask to speak with someone regarding the Ombudsman Program. This free program is designed to handle situations such as yours. The purpose is not to settle the dispute, but to make sure that you, as the consumer, are fully aware of all the options available to you, including filing a complaint against the REALTOR® with the Texas Real Estate Commission or filing a lawsuit against the REALTORS®. It also assures that the REALTOR® understands that you know all the options available to you. If you are not satisfied with the result obtained by the Ombudsman Program or if the licensee with whom you dealt is not a REALTOR®, you can file a complaint with TREC.
Generally speaking, the broker is not a guarantor of the tenant's performance. When the landlord cuts the deal, he has presumably checked into the tenant's credit and ability to perform. If, however, the landlord has relied on the broker's representations, it is a different matter.
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Dear George: Is there an easy-to-read list for Texas buyers that shows which disclosures are required by a seller who is also a real estate agent? For instance, are Texas-licensed real estate agents required to disclose if they are selling a property for a family member?
Answer: The Texas Real Estate License Act states that the real estate commission may suspend or revoke a license if the license holder: "(3)engages in misrepresentation, dishonesty, or fraud when selling, buying, trading, or leasing real property in the name of: the license holder; the license holder's spouse; or a person related to the license holder within the first degree by consanguinity." Consanguinity means relationship by blood or by a common ancestor.
There is no easy-to-read list for Texas buyers that show which disclosures are required by a seller who is also a real estate agent. However, the Texas Real Estate Commission's Web site offers helpful guide and checklist for consumers. Also, there is an eight-step homebuyer's guide published by the Real Estate Center at Texas A&M University.
Dear George: We recently purchased a home where the previous owners failed to disclose that the property had flooded and that an upstairs shower leaks. Who is held responsible for failure to disclosure such information?
Answer: The sellers are the ones making the disclosure to you. A real estate licensee is not held accountable, as long as the licensee didn't know that the property had the defects you listed. The title company is completely out of it. You allege that the sellers knew about problems with the property and misrepresented the existence of these problems, all of which appear to be material facts regarding the condition of the property. Did the sellers actually live in the property or did they rent it out to a tenant? Did you have the property inspected by a state-certified inspector? If you did, there is the possibility that the inspector missed possible evidence of previous flooding and the leaking shower. If you didn't have the property inspected, why not?
Those are a few of the questions you need to answer before anyone can provide meaningful guidance to you regarding whether anyone is liable for anything.
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