lReal estate law

[hsresllc]

What is the name of your state? New Hampshire

I was involved with a commercial real estate sale. I had a lease to own on the property and could sell it at any time, as long as the seller recieved what I owed him. My attorney wrote up the settlement statement. When reviewing this later on, I noticed that the sales price on the settlement statement was about 13k short of the P&S. When asking my broker about this, he says the buyers broker worked for "free" and they took his commission out of the sales price.

My questions are??
Did they defraud the state out of tax stamp monies owed?
Should my broker have disclosed to me the fact that monies were being given back to the buyer (by lowering the sales price)?
Shouldn't the closing company have picked up on this???

Thanks

 

[HomeGuru]

What is the name of your state? New Hampshire

I was involved with a commercial real estate sale. I had a lease to own on the property and could sell it at any time, as long as the seller recieved what I owed him. My attorney wrote up the settlement statement. When reviewing this later on, I noticed that the sales price on the settlement statement was about 13k short of the P&S. When asking my broker about this, he says the buyers broker worked for "free" and they took his commission out of the sales price.

My questions are??
Did they defraud the state out of tax stamp monies owed?
Should my broker have disclosed to me the fact that monies were being given back to the buyer (by lowering the sales price)?
Shouldn't the closing company have picked up on this???

Thanks

**A: what did YOUR attorney tell you when you asked him/her these same questions?

 

[hsresllc]

I first went to my state real estate commissioner and asked her to do an inquiry into this. At first she stated a few violations had been broken and then she reversed herself 3 weeks later and stated the Buyers broker was working for free and that everything checked out o.k. . This seemed odd????
I then wrote my real estate broker and questioned him on this matter. He called late one night 3 days later and stated the commisioner had checked him out and everything was fine. My biggest problem is that know one involved will acknowledge anything on "paper" only verbally. It wasn't until 1 week ago I threw the question to my CPA while talking tax returns. He said something did not seem right and I should probably check it out. Also a close friend who closes on loans said she would never close on a loan if the Settlement Statement did not match the P&S. At this time, I do not feel I can trust my lawyer to ask him these questions.

 

[HomeGuru]

I first went to my state real estate commissioner and asked her to do an inquiry into this. At first she stated a few violations had been broken and then she reversed herself 3 weeks later and stated the Buyers broker was working for free and that everything checked out o.k. . This seemed odd????
I then wrote my real estate broker and questioned him on this matter. He called late one night 3 days later and stated the commisioner had checked him out and everything was fine. My biggest problem is that know one involved will acknowledge anything on "paper" only verbally. It wasn't until 1 week ago I threw the question to my CPA while talking tax returns. He said something did not seem right and I should probably check it out. Also a close friend who closes on loans said she would never close on a loan if the Settlement Statement did not match the P&S. At this time, I do not feel I can trust my lawyer to ask him these questions.

**A: understood, but ask anyway and then post the responses. I will respond accordingly.

 

[hsresllc]

Response from lawyer

New Hampshire
Well, did what you said. My lawyer sent me a response. It reads.
If you or your lawyer have any questions concerning the closing, please respond back to his lawyer!!! My lawyer has his own lawyer? Why does he need a lawyer?? I had only asked for a clarification of what happened.

 

[nextwife]

I guess you, in essence, asking whether all "commissions" must legally be paid out of sale proceeds, and whether it is "kosher" to pay them, (or not), outside of closing?

If a person sells at a lower price, by owner, NOT paying a commission at all, are they "cheating" by paying lower revenue stamps because they agreed to a lower sale price?

 

[HomeGuru]

New Hampshire
Well, did what you said. My lawyer sent me a response. It reads.
If you or your lawyer have any questions concerning the closing, please respond back to his lawyer!!! My lawyer has his own lawyer? Why does he need a lawyer?? I had only asked for a clarification of what happened.

**A: I don't know. I will check with my lawyer.

 

[hsresllc]

I guess you, in essence, asking whether all "commissions" must legally be paid out of sale proceeds, and whether it is "kosher" to pay them, (or not), outside of closing?

If a person sells at a lower price, by owner, NOT paying a commission at all, are they "cheating" by paying lower revenue stamps because they agreed to a lower sale price?

I don't think you understand the question. Lets say I owed my realtor 20,000 for both sides of the commision. He took 10,000 (1/2) of his commision at closing which was disclosed. The other 1/2 of the commision ( the buyers side) was not given to the buyers broker but directly to the buyer. This lowered the sales price of the property he was buying by 10,000.

I think he should have disclosed this to me. He had to have had some conversation with the buyer to set this up! (not to mention my lawyer had to have known something was up). Shouldn't I know all that he knows? I feel the proper thing for him (my broker) to do was to take his full commision, pay the other half to the buyers broker, and if the buyers broker wanted to give the buyer his 10,000 commision towards the purchase of the building, then that would have been o.k. .

What if?? While as the deal was coming together my broker had approached me with this? Maybe I could or would have negotiated for a better deal on my behalf? I don't know this because my agent did not disclose all he knew to me. Would you agree?

 

[hsresllc]

Serious?

**A: I don't know. I will check with my lawyer.

r u serious?
Thanks for the help, sa !!!

 

[HomeGuru]

I don't think you understand the question. Lets say I owed my realtor 20,000 for both sides of the commision. He took 10,000 (1/2) of his commision at closing which was disclosed. The other 1/2 of the commision ( the buyers side) was not given to the buyers broker but directly to the buyer. This lowered the sales price of the property he was buying by 10,000.

I think he should have disclosed this to me. He had to have had some conversation with the buyer to set this up! (not to mention my lawyer had to have known something was up). Shouldn't I know all that he knows? I feel the proper thing for him (my broker) to do was to take his full commision, pay the other half to the buyers broker, and if the buyers broker wanted to give the buyer his 10,000 commision towards the purchase of the building, then that would have been o.k. .

What if?? While as the deal was coming together my broker had approached me with this? Maybe I could or would have negotiated for a better deal on my behalf? I don't know this because my agent did not disclose all he knew to me. Would you agree?

**A: you are a correct. The broker violated various provisions in the state real estate licensing law and the Realtor Code of Ethics and Standards of Practice.