Joe Woodbury Of Re/Max Of Barrington ripoff Dishonest and unethical behavior cost me almost $1,000 and the house of my dreams Barrington Illinois
Gross abuse of the Attorney Review Clause in the Multi-board Residential Real Estate Contract 3.0.
My fianc and I fell in love with a house for sale. Our contract was canceled 4 business days after the seller signed. A higher offer came in and the seller, with the advice of her realtor (Joe Woodbury of Re/Max of Barrington) and lawyer (Steve English), canceled our contract. I spent almost $1,000 in home inspection, mortgage application and attorney fees with nothing but heartbreak to show for it. How can this be legal? I know it most certainly can not be Ethical or in Good Faith.
Following is the sequence of events:
1/16 With the advice of my realtor I signed the Multi-Board Residential Real Estate Contract 3.0 with an offer to purchase a home. After a series of counter offers my offer was accepted by the seller. The accepted offer was noted and I initialed the changes.
1/17 The seller signed the contract.
1/18 My realtor gave me a copy of the signed contract.
1/20 I met with my bank's loan officer in the morning and with the home inspector in the afternoon. The home inspector e-mailed his report to me later in the day.
1/21 I spoke with my lawyer regarding the home inspection and received advise on what items to be concerned about. I asked my lawyer if presenting this information to the seller's lawyer would in any way jeopardize the purchase of the home. My lawyer said this is standard procedure; it will not jeopardize the deal.
1/22 My lawyer faxed the seller's lawyer a letter listing 4 concerns and attached the home inspection which listed 24 items. The letter stated Please accept these requests as items of further negotiation and not as a counter offer. Purchaser maintains the right to withdraw any repair requests.
1/23 5:50 PM Seller's lawyer faxed letter to my lawyer stating Pursuant to the terms of Condition 12 of the sales contract, please be advised that I hereby disapprove of the terms of the contract and hereby electing to declare the transaction null and void and authorize the return of earnest money. We regret that this transaction did not materialize and wish your clients the best of luck. Note: no reason was given for the disapproval.
1/24 My lawyer called my realtor and my realtor called me with the bad news.
1/26 With my ok my lawyer faxed a letter to the seller's lawyer stating: Receipt of your January 23rd letter is acknowledged. Apparently my client is nuts about this house and would meet or beat the second offer and waive the home inspection if Seller would hang in there on this deal. I know this is an awkward situation but if the second deal is disapprovable, this might be a place for Seller to make a little more on the home. Let me know your thoughts.
1/27 My realtor advised that I sign a new contract with a new offer more than the original list price, a closing date of 2/25, wave the well and septic inspection and cross off the attorney review paragraph. I checked with my mortgage company on the new closing date and loan amount, signed the new contract and faxed it back to my realtor.
1/28 The seller's realtor mailed my earnest money check back to me (postmarked 1/26). The check was stamped For Deposit Only Escrow Account. A handwritten note from the seller's realtor said I have been instructed to return this earnest money check to you. I am very sorry the transaction failed to close.
1/29 I called my realtor to let him know I received the earnest money check. He said returning the check to me is proof that it was never deposited. Realtor code states that earnest money must be deposited the next business day, which would have been 1/20. I was advised to hang onto the check, note and envelope as valuable evidence.
1/30 My realtor called and said the seller is not going to accept my offer. My lawyer suggested I offer $,$$$ to the buyers to cancel their contract before the Attorney Review time period expires. My lawyer called the seller's lawyer and asked if the buyers would be receptive to such an offer.
M
Barrington, Illinois
U.S.A.
Click here to read other Rip Off Reports on Remax Realtors
3 Updates & Rebuttals
Joe
Barrington,Illinois,
U.S.A.
Enough is Enough "M"
#4REBUTTAL Individual responds
Wed, June 02, 2004
"M" this is the last response you will get from me regarding your false charges. For your information, I met with the OBRE over your public complaint and I was told I handled your situation totally correct. I have a file complete with documentation on the termination of your offer which was shared with the OBRE. To say the sellers attorney did not bring up the home inspection issues you raised is totally false and I can prove it and I will be proving it. I will not tolorate you attempting to damage my reputation any longer.
M
Barrington,Illinois,
U.S.A.
need to figure out if my realtor and lawyer lied to me or failed to inform me of these facts.
#4Author of original report
Thu, April 08, 2004
Thank you for responding...
My report included all details and facts of the story. I did not hold back any information. You bring up facts that I was not aware of. My source of information in this mess was my realtor and lawyer. Now I need to figure out if my realtor and lawyer lied to me or failed to inform me of these facts.
Your accusations:
1. She fails to tell readers that her home inspection yielded a laundry list of complaints about the home she wanted to purchase many frivilous.
I did tell the readers, my report said:
1/21 I spoke with my lawyer regarding the home inspection and received advise on what items to be concerned about. I asked my lawyer if presenting this information to the seller's lawyer would in any way jeopardize the purchase of the home. My lawyer said this is standard procedure; it will not jeopardize the deal.
1/22 My lawyer faxed the seller's lawyer a letter listing 4 concerns and attached the home inspection which listed 24 items. The letter stated Please accept these requests as items of further negotiation and not as a counter offer. Purchaser maintains the right to withdraw any repair requests.
Note: only 4 out of 24 issues listed on the home inspection were noted as items of concern. I agree that many of the issues on the report were frivolous and I noted on the report OK next to each issue that was not a concern.
2. She fails to tell readers that I told her Realtor in advance that only structural, habitabiltiy and sanitation issues would be tolorated and she fails to tell readers that she knew (or HER agent knew) there was another offer coming in as a back up to hers.
My realtor did not share the home inspection advice with me. Note: The 4 concerns listed in the letter from my lawyer to the seller's lawyer were structural and habitability issues: crawl space columns are loose or are falling over, the concrete retaining walls are severely cracked and are severely bowed, flue baffle in water heater has significant corrosion - this is a carbon monoxide hazard, electrical receptacle in lower bath and the south exterior receptacle were still live after GFCI was tripped shock hazard.
My realtor said there was another couple interested in the house. He did not say anything about a back up offer or provide any clue that my contract may be canceled.
3. M incredibly fails to tell her readers that she came forward with a second offer (all documented and on record with the OBRE)tring to do the very same thing to the backup buyer that she is complaining was "unethical" and "not in good faith" here. Apparently not so unethical that she would'nt do it herself. Not funny and indeed a bit sad and clearly not rational in my view.
Again, I did tell the readers, my report said:
1/26 With my ok my lawyer faxed a letter to the seller's lawyer stating: Receipt of your January 23rd letter is acknowledged. Apparently my client is nuts about this house and would meet or beat the second offer and waive the home inspection if Seller would hang in there on this deal. I know this is an awkward situation but if the second deal is disapprovable, this might be a place for Seller to make a little more on the home. Let me know your thoughts.
1/27 My realtor advised that I sign a new contract with a new offer more than the original list price, a closing date of 2/25, wave the well and septic inspection and cross off the attorney review paragraph. I checked with my mortgage company on the new closing date and loan amount, signed the new contract and faxed it back to my realtor.
Note: It wasn't my idea to do a second offer; I followed the advice of my realtor and lawyer.
4. I wish M the very best in her search for a new home and perhaps she should have listened to her Realtor at the time as he indicated to me she failed to do after the inspection.
I did listen to my realtor. The story he gave me is different than your story. Also, it was my realtor that suggested that I file a report with the OBRE.
Additional information:
After receiving the news that my contract was canceled I emailed information to my lawyer and realtor, following is my email and my lawyer's response:
From: M
Sent: Monday, January 26, 2004 1:21 PM
Subject: Attorney Review Paragraph
I found the following when doing a search for: (Multi-board Residential Real Estate Contract 3.0 Paragraph 12. Attorney review)
12. ATTORNEY REVIEW: This paragraph is very important and encourages people to enter into contract and then take 5 days to review with their attorney. This paragraph also
provides that the price is not subject to further modification. This paragraph provides 5
business days to review the contract and to approve, disapprove or request modifications.
(See paragraph 28 requiring good faith and fair dealing.) The paragraph states that
Disapproval may not be based solely on the price. This implies the need for some other
reasonable basis for not approving. I smell law suites on this provision.
28. CHOICE OF LAW/GOOD FAITH: THIS PARAGRAPH IS VERY IMPORTANT. In addition to Illinois Law controlling, it requires Good Faith and Fair Dealing. This is very important when people are trying to break the contract.
To view the entire document click on: http://www.raschelaw.com/understanding_contract.pdf
Please let me know if there is anything we can do.
Thanks,
M
From: (my lawyer)
To: M
Sent: Monday, January 26, 2004 2:33 PM
Subject: Attorney Review Paragraph
I spoke to the atty and he told me he didnt even consider the HI, all he did was disapprove as his client told him to do and it was based on receipt of a higher offer so even if you had not sent the letter on repairs, it would not have made any difference. How about a letter saying you'll meet or beat the current deal and waive repairs? English said he had no problem if your agent gave the sellers agent another offer.
Joe
Barrington,Illinois,
U.S.A.
The Whole Story Please
#4REBUTTAL Individual responds
Fri, March 26, 2004
I'm proud to add the following rebuttal.
I did not represent "M" but I did represent the sellers in this transaction honestly and ethically. What M says in her complaint lacks several important facts. She fails to tell readers that her home inspection yielded a laundry list of complaints about the home she wanted to purchase many frivilous.
She fails to tell readers that I told her Realtor in advance that only structural, habitabiltiy and sanitation issues would be tolorated and she fails to tell readers that she knew (or HER agent knew) there was another offer coming in as a back up to hers.
M incredibly fails to tell her readers that she came forward with a second offer (all documented and on record with the OBRE)tring to do the very same thing to the backup buyer that she is complaining was "unethical" and "not in good faith" here. Apparently not so unethical that she would'nt do it herself. Not funny and indeed a bit sad and clearly not rational in my view.
I wish M the very best in her search for a new home and perhaps she should have listened to her Realtor at the time as he indicated to me she failed to do after the inspection.
I have 25 years experience in Real Estate and enjoy an impecable reputation and rank in the very top Realtors statewide.
I can tell you with out any hesitation that my client in this transaction is very happy with my services and the manner in which her interests were handled.
A complaint has also filed on this matter with the Office Of Banks and Real Estate in which I've been cleared of wrong doing. This is no laughing matter that a story can be half told and un-verified by anyone and potentially damage one's reputation.
I am grateful to my friend who called me to advise me of this site and my unfortunate presents on it.
While I'm here I would be remiss not to add that If you are in the market for a home in the Barrington area or interested in selling a home and would enjoy "expert" service like that provided to my client in this transaction, please call me.
PS Contact M's own attorney for verification.