What is the name of your state? Ohio
I need some advice on what steps or rights I may have concerning a real estate transaction on commercial property that me and my husband own.
We listed the commercial property (a bar & grill/5 apts above restaurant) with a real estate agent in May 06. The agent started the listing at $250,000.00. In August, the real estate agent decided that he would buy the property from us himself and have another gentelman run it. We agreed upon a price of $175,000.00 with him receiving a 10% commission at closing. He wanted immediate occupancy, (has changed the name and dining area), so we granted him that and wrote up a managerial agreement with him (liquor license involved).
He agreed to pay us $1,700.00 a month until the close which was supposed to take place by October 31st, 2006. In the agreement he took over the business as well as the apartments above. He has been keeping the rents from the rental units.
In the beginning of November he advised us that he needed more time to get his loan, so we granted an extension until the end of the month. The check his manager wrote us for our November rent bounced, he has been fired, and we still have not received our December rent.
He went through a mortgage company that only appraised the property at $130,000.00 on a comparable. He is now going through another bank that said they will use the sales approach appraisal that came in at $170,000.00
He wanted to buy this place without using any of his own money, but told me in early Novemeber that he would put an equity line of credit on his house to make sure that we would get our money. My question is, now that he is unable to get as much as he wanted from the banks, now he is telling my husband that we are going to receive $134,000.00 net from him at closing. We agreed upon receiving approx. $156,000.00 net at closing when all of this started. He rewrote up a new contract putting down that the selling price is $175,000.00 pending him receiving a loan for $140,000.00
What rights do we have at this point? The real estate agent seems to be working more for himself than us. We would have never took the property off the market if we knew then that he would lower our net result.
Any suggestions would be greatly appreciated.
Thank you!!!
I need some advice on what steps or rights I may have concerning a real estate transaction on commercial property that me and my husband own.
We listed the commercial property (a bar & grill/5 apts above restaurant) with a real estate agent in May 06. The agent started the listing at $250,000.00. In August, the real estate agent decided that he would buy the property from us himself and have another gentelman run it. We agreed upon a price of $175,000.00 with him receiving a 10% commission at closing. He wanted immediate occupancy, (has changed the name and dining area), so we granted him that and wrote up a managerial agreement with him (liquor license involved).
He agreed to pay us $1,700.00 a month until the close which was supposed to take place by October 31st, 2006. In the agreement he took over the business as well as the apartments above. He has been keeping the rents from the rental units.
In the beginning of November he advised us that he needed more time to get his loan, so we granted an extension until the end of the month. The check his manager wrote us for our November rent bounced, he has been fired, and we still have not received our December rent.
He went through a mortgage company that only appraised the property at $130,000.00 on a comparable. He is now going through another bank that said they will use the sales approach appraisal that came in at $170,000.00
He wanted to buy this place without using any of his own money, but told me in early Novemeber that he would put an equity line of credit on his house to make sure that we would get our money. My question is, now that he is unable to get as much as he wanted from the banks, now he is telling my husband that we are going to receive $134,000.00 net from him at closing. We agreed upon receiving approx. $156,000.00 net at closing when all of this started. He rewrote up a new contract putting down that the selling price is $175,000.00 pending him receiving a loan for $140,000.00
What rights do we have at this point? The real estate agent seems to be working more for himself than us. We would have never took the property off the market if we knew then that he would lower our net result.
Any suggestions would be greatly appreciated.
Thank you!!!
