Real estate transactions have been tricky in many southern states since the economic slump of 2008. Texas has not been the only state to fall prey to real estate property disputes.
A real estate company previously affiliated with Prudential has filed a suit against Regions Banks of Alabama and a resident of Texas in the Orleans Parish District Civil Court. At issue is a $50,000 deposit and a buyer who changed her mind.
A Texas woman agreed to purchase a property on Prytania Street, New Orleans, for $1.6 million. She then signed an “Agreement and Counter Offer” transaction.
The suit claims the broker and listing agent came to an arrangement with the buyer and the $50,000 deposit was delivered by the buyer’s agent. The property closed on the predetermined date, but the broker was later informed that the buyer would not go through with the sale.
Since then both the bank and the buyer have requested the funds be released, but the real estate company considers the funds to be in dispute. The representative for the real estate company has requested that the court hold on to the funds, less the costs of filing, and has asked to be dismissed from the case.
The bank feels that the buyer reneged on her obligation to purchase the property, as per the real estate agreement and counter offer. They claimed the buyer agreed to make the purchase and was aware of the closing date. The bank states that the contract allows them 10 percent of the purchase price, or $160,000, and the right to retain the disputed funds.
Real estate transactions are complex in Texas, as in other states. There is a great deal at stake for the buyer and the seller, as well as the for lending institution. In the mountain of paperwork to be filed, sometimes a purchase dispute arises. It is advisable for all involved in real estate transactions to have the guidance and expertise of a seasoned individual or entity, that is well-versed in real estate law. It is in your best interest and will help protect your rights and your understanding of what you are signing.
Source:Louisiana Record, “Real estate company asks to be released from responsibility of $50K deposit dispute” Lizzy Fitzsousa, Apr. 02, 2014