Complaint Review: Steve Kudingo

So I went on the website and saw it sold for $40,803. This sold price was ONLY $3.00 over what they had just
countered to me the day before. 

I immediately called Steve: Steve,  here, call me back immediately! 

Steve called me back within 15 minutes.

Steve, who in your office sold that house,

I have no idea.

Steve, I find it hard to believe that someone from your office sold it for $3.00 more than what their counter offer was to me and you have no idea who it was?

No , I dont

Steve, you are lying to me

No, Im not 

So you can look me in the eyes and tell me you dont know anything about this deal?

Yes, , I can look you in the eyes and say no , I dont know anything about this!

So I hung up. I immediately called his broker Greg from Remax in XXXX and told him exactly what just happened and what was said. Greg said that he was going to have Steve call me after he spoke with him about the situation. Within a hour Steve called me back.

Hello

T, I sold the house, Im sorry

Steve, how could you do this to me?

Youre my realtor! I cant believe you lied to me! I asked you point blank if you could look me in the eye and you sat there and said yes Tom I dont know anything about this deal! I gave you every opportunity to tell me the truth and over and over again you flat out lied to me! Steve, How can you do this to me?

T, I know, I am sorry

I cant believe you sold it right from underneath me, you had a fiduciary responsibility to me Steve!

T, I know, I really am sorry

Why didnt you tell me you had another buyer?

I didnt want to get you mad

You didnt even give me a fair chance to but this house.

I know, Im sorry

Who bought this house?

Someone from Chicago, Illinois Steve has family from and around Chicago Illinois.

When did they see it? 

They flew in on Monday. They saw it Monday morning and had a home inspection done to

Steve, you were with me Monday morning! We met at the house in XXX and then I showed you the house the house in XXXX. Theres no way you could have shown them the house Monday!

I mean they drove in on Saturday, because I had the home inspection done on Friday

What? You mean to tell me these people from Illinois didn't even see the house, but you had a home inspection done on Friday and put in an offer on Saturday? 

Yes

Steve, tell me this; how can they have a home inspection done with no electricity, no water and no gas turned on, that house has been winterized?

Thats what I thought, but they did

 

KEY NOTE: Saturday January 16, 2010, my family came down from XXXXX to have breakfast and see the home in XXXX. We drove by at around 10:45am or 11am. No one was there. We went to lunch and at around 1 pm we had a realtor let us in the house in XXXX. I gave my family a tour and talked about the plans for the house. We were there until about 1:30-2:00pm. Still no one was there. Keep in mind a home inspection takes at least 4 hours and everything has to be turned on. The city has to turn on the gas and water and the utility company has to turn on the electric. The Seller, not the realtor, would do all this. Not to mention it doesn't get light until at least 8am and the sun starts setting around 4pm.

How long was the home inspector there?

 I dont know

Now tell me this, how can your people put in an offer for ONLY $3.00 more Saturday than my counter from themTuesday?

I dont remember, I am so confused


You sure cant remember anything, can you? Your story is not making any sense, because you keep changing it.

T, I am very sorry, but I am just so confused right now. Im sorry

Steve, you need to make this right

Ill do whatever it takes to make this right, I promise

Thats fine. Ill give you 1 more chance Steve to do the right thing

Thanks T and I am very sorry

We hung up and I called Steves broker Greg back. I told Greg exactly the whole conversation (just like here and minus the swearing). Greg told me that he was going to have a heart to heart with Steve on Friday morning. With that we hung up. 

Keynote: NOT 1 time did Greg apologize for Steves behavior, nor did he even ask how could I fix this. He only agreed that Steves story didnt add up and something was strange about it. Not to mention, why was he waiting until Friday morning, this happened today, Wednesday. Any broker in their right mind that nothing to do with this would try to fix the situation now. Not wait until Friday.

5 minutes later I get a call from Steve.


T, I called the buyer and told him what I did. And he told me that it was fine and to find him another house

Are you sure hes ok with it, Steve?

Yes, he totally understands the situation

Perfect, lets talk tomorrow

Ok

We hung up.

  About 15 minutes later, Steve calls back.

T the mom just called pissed as hell and said no way. We are not backing out of the deal. They accepted our offer at their price and we are not going to back out because this guy Tom wants it.

Steve, I thought you told me the buyer was ok with it, what happened?

Well it was the son from Georgia that said it was ok, the mother from Illinois is the one that isnt

The son from Georgia? You told me the buyers were from Chicago, Illinois. Now youre telling me that there are 2 people, 1 from Georgia and 1 from Illinois? 

Yes

Steve, who is actually buying the house?

The son from Georgia

Then how can the mom say no?

I dont know

Is he getting a loan, I mean just
him and no cosigner?

Yes

Steve, this just isnt making any sense. If hes really buying the house, than she has absolutely no say. That would be like my mom calling you telling you not to let my son buy this house. She cant do that.

T, dont worry, he wont get it. The paperwork might not get filled out right and wont get in on time

What do you mean?

They have exactly 48 hours to get everything in. The son told me hed do it Friday. Hes in Georgia and even if we overnight it that is 48 hours right there (there and back). It needs to be at the office by 2pm Friday. It wont get there. So, they wont accept it and in about 30 to 45 days the house will go back on the market

Then what youre saying is, I have to wait another month to start all over, when I have spent months trying to buy this house?

Yes

Lets just talk tomorrow

Ok

We hung up.


Thursday, January 21, , Steve calls and tells me


 T, as of today, I put my 30 days notice in. Im never going to do real estate again 

Oh, well, let me know how this deal goes.

I will

We hung up.

 Friday January 22, , the broker from Remax Greg called.


T, I had a heart to heart with Steve and just to let you know I fired him. I called the Commerce Department and had his license put inactive. I have to move forward with the buyers at hand. There is nothing I can do

Are you sure?

Yes

Greg, I thought the paperwork had to be in today by 2pm?

Yes, that is true, but theyll get it there by Monday

This deal just stunk from start to finish

Yes

Yeah

Well, if something changes let me know

I will, but it will go through

We hung up.

13. Monday January 25, 10:30 am. I called Jeff from XXXX and asked him if he had received any paperwork on the house in XXXX. 

Jeff, T here, I was wondering if you got the paperwork on the house in XXXX yet?

As of yet I havent received any paperwork, but Im expecting it sometime today

According to the rules, you ONLY have 48 hours from the time the offer is accepted to get all the paperwork right?

 

Jeff responded by skirting around the question never giving me any answer.

But I will give them until the end of the day today

Key Note: Once XXXX has accepted an offer, you have exactly 48 hours to have all the necessary paper work signed and dated along with a cashiers check from a bank in the office. Keep in mind that Friday Greg stated that the paperwork was going to be there Monday, AFTER the 48 hour rule with  expired. Meaning that an additional 72 hours+ had gone by along with the 48 hours. With Jeff basically admitting this by simply stating, Im expecting sometime Monday. Therefore, Greg and Jeff knew full well of this deal NOT going through legally, thus bending the rules and the realtors standard practices and code of ethics. Not to mention Greg and Jeff legally violated securities, intentional tort, fraud and misrepresentation. 


SecuritiesNon-suitable investments, broker/agent fraud, misrepresentation broker has a duty to understand the investor's risk tolerance.

Fraud and Misrepresentation Intentional TortsDefamation, libel, slander, tortious interference with contract, tortious interference with prospective business relations


A fiduciary responsibility is a legal or ethical relationship of confidence or trust between two or more parties, most commonly a fiduciary and a principal. One party, for example a corporate trust company or the trust department of a bank, holds a fiduciary relation or acts in a fiduciary capacity to another, such as one whose funds are entrusted to it for investment. In a fiduciary relation one person, in a position of vulnerability, justifiably reposes confidence, good faith, reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires one to act at all times for the sole benefit and interests of another, with loyalty to those interests. A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence.[1] 

A fiduciary duty[1] is the highest standard of care at either equity or law. A fiduciary (abbreviation fid) is expected to be extremely loyal to the person to whom he owes the duty (the "principal"): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents. The word itself comes originally from the Latin fides, meaning faith, and fiducia, trust.

Laws Board of Realtors

 

Article 1

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS of their obligation to treat all parties honestly.

When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS remain obligated to treat all parties honestly. (Amended 1/01)

 Standard of Practice 1-9

The obligation of REALTORS to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any nonagency relationships recognized by law. REALTORS shall not knowingly,
during or following the termination of professional relationship with their clients:

1) reveal confidential information of clients; or

2) use confidential information of clients to the disadvantage of clients; or

3) use confidential information of clients for the REALTORs advantage or the advantage of third parties unless:

a) clients consent after full disclosure; or

b) REALTORS are required by court order; or

c) it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or

d) it is necessary to defend a REALTOR or the REALTORs employee or associates against an accusation of wrongful conduct.

Information concerning latent material defects is not considered confidential information under this Code of Ethics. (Adopted 1/93,

Amended 1/01)

Article 2

REALTORS shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law. (Amended 1/00)

Standard of Practice 2-1

REALTORS
shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas
required by their real estate licensing authority. Article 2 does not impose upon the REALTOR the obligation of expertise in other
professional or technical disciplines. (Amended 1/96

Article 12

REALTORS
shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS shall ensure that their status as real estate professionals is readily apparent in their advertising,
marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified
that those communications are from a real estate professional.

(Amended 1/08)

Article 13

REALTORS
shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained
when the interest of any party to the transaction requires it.

 14. Tuesday January 26, 2010, I was still so sick to my stomach over this deal, I called Greg.

Greg, T here.

Yeah, I actually just got a phone call from a broker out in South Dakota asking me about Steve

Really?

Unfortunately, I cant say anything to him about this deal Wow, so he can continue to do this to other people and no one cares!
We have rules we have to follow

Wow, unreal. You know Greg, I still feel Ive been wronged and completely betrayed on this whole deal. I should be compensated on this deal

Well, T, thats just like you buying a house. After 3 days you buy it, it rains and your basement floods. You have no legal recourse, because the disclosure never said it had a wet basement. Therefore, youre stuck with the house. Because you cant prove it!

Wow, really

Yes

How would you feel if you were me and this happened to you?

I can see your point, but you cant do anything about it!

WOW

Oh, the deal did go through

Ok

With that we hung up.

 15. Present day 2010. I am still riddled with anguish and feeling betrayed and wrong. I have never in my life had been
fed to a pack of wolves like this before. There literally was something going down in Georgia as the song goes; meaning a deal was done under the table NOT just once, not twice, but THREE times.

My research shows that Steve Kudingo lived in the Chicago area back in the early 2000s and still has relatives there in Chicago and the suburbs. 

He knew I was going to be a repeat client, making him money by using him to buy all my houses, plus an
additional 3% if he brought me buyers. Its ironic that as soon as he sees this house, he sells it to someone from Chicago, Ill. At 2pm the same day I get my offer from Seller at $40,800, he buys it for $3.00 over my counter at $40,803. Which they accepts the offer at 2pm Tuesday afternoon. Please note, Monday see the house for the first time, Steve said (quote) You can sell this house for $79,900 overnight without touching it! 

The second time Im thrown under the bus; Greg doesn't address the situation with Steve until Friday morning, 2 whole days AFTER the situation with Steve occurred. Even though, Greg was told everything that was going on; by not only myself, but Steve as well. 

The third time I am thrown under the bus. Apparently, the first 2 times couldn't get the job done, so, Greg decided the third times the charm to finish me off! Greg calls Jeff from XXXX on Friday and works out some sort of deal with Jeff. To insure Jeff accepted the late paperwork. Keep in mind all the paperwork and cashiers check should have been in the office no later than 2pm Friday. Greg and Jeff backed this story up with the following statements: Greg on Friday: They will get it Monday.  Jeff on Monday: But I will give them until the end of the day today. 

Not only did Steve have a fiduciary irresponsibility to me, but Greg did as well. Wheres the integrity, wheres the righting of the wrongs that have been done to me. I feel as though I have been raped and being exposed. Giving factual proof, evidence to back up my story. Where as Greg acting as the Judge is saying: Theres nothing you can do and there is certainly nothing I can do! I see all your evidence, but you provoked him. Its your own fault. Next time dont wear makeup and put on a cute dress with heels. Therefore, Im letting the perpetrator go free to repeat his crimes over and over again on other people, so they to can feel violated!

In other words: Dont get a realtor and show him a hot deal, because he and his broker will steal it right from under you. Because they would much rather make $50,000+ overnight, than a mere 5% of $29,000.

 Or in Gregs own words:

 T, I had a heart to heart with Steve and just to let you know I fired him. I called the Commerce Department and had his license put inactive. I have to move forward with the buyers at hand. There is nothing I can do Sad thing is, he could have done something; by not only going to the local board of realtors, but the state as well and then to put in a request by either suspending or revoking Steves license. He did none of the above! Greg just not only helped Steve, but helped himself to a tiny bit of commission, its called greed.

Well, T, thats just like you buying a house. After 3 days you buy it, it rains and your basement floods. You have no legal recourse, because the disclosure never said it had a wet basement. Therefore, youre stuck with the house. Because you cant prove it! 

Sad thing is; I have proof! And he knew it or he wouldnt have called Jeff from HUD on Friday!

Upon reading the laws, show me where there has NOT been a crime committed, legally and ethically!

 A fiduciary responsibiltiy is a legal or ethical relationship of confidence or trust between two or more parties, most commonly a fiduciary and a principal. One party, for example a corporate trust company or the trust department of a bank, holds a fiduciary relation or acts in a fiduciary capacity to another, such as one whose funds are entrusted to it for investment.  In a fiduciary relation one person, in a position of
vulnerability, justifiably reposes confidence, good faith, reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires one to act at all times for the sole benefit and interests of another, with loyalty to those interests. A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence.[1] 

A fiduciary duty[1] is the highest standard of care at either equity or law. A fiduciary (abbreviation fid) is expected to be extremely loyal to the person to whom he owes the duty (the "principal"): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents. The word itself comes originally from the Latin fides, meaning faith, and fiducia, trust.

SecuritiesNon-suitable investments, broker/agent fraud, misrepresentation broker has a duty to understand the investor's risk tolerance. In making an investment recommendation to a client, a broker must make recommendations that are consistent with the customer's risk tolerance, needs and investment objectives. A broker has a duty to know his client and only recommend investments and trading strategies that are suitable for that client. An investment may be unsuitable if a customer does not have the financial ability to incur the risk associated with a particular investment, or if the investment was not in line with the investor's financial needs; or if the customer did not know or understand risks associated with certain investments. 

A broker has a duty to understand the risk tolerance of an investor, the tax considerations for the client, the client's prior experiences and appetite for risk, and the level of return desired. It is the duty of a broker to make recommendations that are appropriate and suitable given his client's circumstances. If a broker breaches those duties and makes unsuitable recommendations for a client, the broker may be liable to that client.

Fraud and Misrepresentation To constitute fraud the misrepresentation [or omission] must be made knowingly and intentionally, not as a result of mistake or accident; that is, that the person either knew or should have known of the falsity of the misrepresentation [or the false effect of the omission], or that he made the misrepresentation [or omission] in negligent disregard of its truth or falsity.The Plaintiff must prove that the Defendant intended for the Plaintiff to rely upon the misrepresentation [and/or omission]; that the Plaintiff did in fact rely upon the misrepresentation [and/or omission]; and that the Plaintiff suffered injury or damage as a result of the fraud.

1. Fraud, dolus malus, may be actual, arising from facts and circumstances of imposition, which is the plainest case; 

2. It may be apparent from the intrinsic nature and subject of the bargain itself; such as no man in his senses and not under delusion, would make on the one hand and such as no honest and fair man would accept on the other, which are inequitable and unconscientious bargains; 

3. Fraud, which may be presumed from the circumstances and condition of the parties contracting; 

Intentional TortsDefamation, libel, slander, tortious interference with contract, tortious interference with prospective business relations. 

Intentional TortsDefamation, libel, slander, tortious interference with contract, tortious interference with prospective business relations. INTENTIONAL INTERFERENCE TORTS WITH PROSPECTIVE ECONOMIC ADVANTAGE Nature of the Tort of Intentional Interference with Prospective Economic Advantage The elements of that tort of are: '(1) an economic relationship between [the plaintiff and some third person] containing the probability of future economic benefit to  the [plaintiff],

(2) knowledge by the defendant of the existence of the relationship, 

(3) intentional acts on the part of the defendant designed to disrupt the relationship, 

(4) actual disruption of the relationship, [and] 

(5) damages to the plaintiff proximately caused by the acts of the defendant.

Laws Board of Realtors Standard Practices and Codes

Article 1

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS of their obligation to treat all parties honestly. When serving
a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS remain obligated to treat all parties honestly.
(Amended 1/01)

Standard of Practice 1-9

The obligation of REALTORS to preserve confidential information (as defined by state law provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any nonagency relationships recognized by law. REALTORS shall not knowingly, during or following the termination of professional relationships with their clients:

1) reveal confidential information of clients; or

2) use confidential information of clients to the disadvantage of clients; or

3) use confidential information of clients for the REALTORs advantage or the advantage of third parties unless:

a) clients consent after full disclosure; or

b) REALTORS are required by court order; or

c) it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or

d) it is necessary to defend a REALTOR or the REALTORs employees or associates against an accusation of wrongful conduct.

Information concerning latent material defects is not considered confidential information under this Code of Ethics. (Adopted 1/93, Amended 1/01)

Article 2

REALTORS shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law. (Amended 1/00)

Standard of Practice 2-1

REALTORS shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. Article 2 does not impose upon the REALTOR the obligation of expertise in other professional or technical disciplines. (Amended 1/96
Article 12

REALTORS shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.

(Amended 1/08)

Please note the 2 parts highlighted in red. They are prevalent to the case against Remax. 

Key Note: The 48 hour deadline for all the signed paperwork and cashiers check was to be in by 2:00 pm Friday January 22, 2010. Seller didnt receive the paperwork until the following Monday January 25, 2010, in the afternoon and they still accepted it. 

Friday January 22, 2010, the broker from Remax Greg called.


Greg, I thought the paperwork had to be in today by 2pm?

Yes, that is true, but well get it there by Monday

Monday January 25, 10:30 am. I  called Jeff from XXXX and asked him if he had received any paperwork on the house in, XXXX. 

Jeff, T here, I was wondering if you got the paperwork on the house in XXXX yet?

As of yet I havent received any paperwork, but Im expecting it sometime today

According to the rules, you ONLY have 48 hours from the time the offer is accepted to get all the paperwork right?

Jeff responded by skirting around the question never giving me any answer.

 
But I will give them until the end of the day today

Key Note: Once they has accepted an offer, you have exactly 48 hours to have all the necessary paper work signed and dated along with a cashiers check from a bank in the office. Keep in mind that Friday Greg stated that the paperwork was going to be there Monday, AFTER the 48 hour rule with expired. Meaning that an additional 72 hours+ had gone by along with the 48 hours. With Jeff basically admitting this by simply stating, Im expecting it sometime Monday. Therefore, Greg and Jeff knew full well of this deal NOT going through, thus bending the  rules and the realtors standard practices and code of ethics. Not to mention Greg and Jeff legally violated securities, intentional tort, fraud and misrepresentation.