What is the name of your state (only U.S. law)? PA
My husband and I wanted to make an offer on this condo that was on short sale. Our realter contacted the real estate company who was selling the condo and told us they want to downpayment of 20K no less. We were originally planning on putting 15 K down but figured we could borrow 5K from someone sinc ethe condo was worth it. We agreed but then I thought it was strange since 20K was more than 10% and less than 20% and downpayment usualle 3,5, 10 or 20%, not somwhere in the middle. Our agent said she is just telling me what the selling agent has told her. So she got me on a three-way call with the selling agent and here is what I found out - the condo was on the market for a long time and real estate selling it lost money somehow ( I am not sure exactly how), for whatever resason they were not paid and they want to be reimbursed - hence the 20K. The bank wanted 150K and the real estate agency put up the condo for 170K. In addition to this 20K we were supposed to pay at least 5% downpayment of the 150K price and settlement cost. So none of the 20K were going towards our mortgage. It was just a payment for the right to actually buy the property
Of course we got rid of the realter on the spot and she kept on calling us saying that she apologizes and that she is there to represent us.
Represent us??? Thank you, but no.
My question is - is it even legal to do that? and also wasn't it our realter's responsibility to find out the details? I mean what if we went through with it and at the end found out that 20K were waisted?
My husband and I wanted to make an offer on this condo that was on short sale. Our realter contacted the real estate company who was selling the condo and told us they want to downpayment of 20K no less. We were originally planning on putting 15 K down but figured we could borrow 5K from someone sinc ethe condo was worth it. We agreed but then I thought it was strange since 20K was more than 10% and less than 20% and downpayment usualle 3,5, 10 or 20%, not somwhere in the middle. Our agent said she is just telling me what the selling agent has told her. So she got me on a three-way call with the selling agent and here is what I found out - the condo was on the market for a long time and real estate selling it lost money somehow ( I am not sure exactly how), for whatever resason they were not paid and they want to be reimbursed - hence the 20K. The bank wanted 150K and the real estate agency put up the condo for 170K. In addition to this 20K we were supposed to pay at least 5% downpayment of the 150K price and settlement cost. So none of the 20K were going towards our mortgage. It was just a payment for the right to actually buy the property
Of course we got rid of the realter on the spot and she kept on calling us saying that she apologizes and that she is there to represent us.
Represent us??? Thank you, but no.
My question is - is it even legal to do that? and also wasn't it our realter's responsibility to find out the details? I mean what if we went through with it and at the end found out that 20K were waisted?