Belt Auction

Opinions on an incompentant real estate agent?

This is just to get an idea of how someone else would have handled this situation. I don't plan on taking any action on if for no other reason the statute of limitations has probably expired. Three years ago I entered into a contract for a condo in NJ using a VA loan. Long story short, my VA funding was denied AFTER I entered into contract when it was revelaed the property did not qualify for VA funding, which is something I never heard of. I did get my deposit back but the whole ordeal also cost me about $1200 in non-refundable attorney and other fees. When I asked my RE agent why I'm finding out about a property I was never qualified to purchase after I signed a purchase agreement his response was evasive and seemed just as suprised as I was. Don't you think a qualified agent should have known that? I took the hit and moved on but it did enter in my mind to sue Coldwell Banker for liquidated damages. I never did. Do you think the agent hosed this up and cost me a lot of money? The agent was a dual agency, so they were also th elisting broker. I did not sue, I let it go. The attorney I mentioned was a real estate attorney who performed the title search and looked over the purchase agreement among other things. There was never any lawsuit. I'm just wondering if there should have been. I strongly believe SOMEONE should have picked up on it.

Public Comments

1. Um...did it ever occur to you that YOU should have known what might or might not qualify for VA funding? Real estate agents are not expected to know everything about everything. It's nice if they know something that you don't, but the funding was something that YOU brought to the table. If you were concerned about this issue, you should have selected a real estate agent who had experience working with VA funding. You could easily have interviewed a dozen agents until you found one who had experience with VA. Not everyone can be a specialist in everything, and I think it's your fault for not seeking out a specialist.
2. The Realtor probabbly was just flat unaware or didn't know this could happen. Though I suppose technically the first answer you got, may be somewhat right, I would be very upset that the person you hired as a Professional really wasn't one. He gets paid to know the stuff you don't!!! I don't know if you can sue. For that amount you could file a small claims action and see what happens.As an Investment Consultant I know my client always expected that what ever route we chose to go, that I knew the ins and outs of it, or would find answers before any type of contract was entered into. Wonder if this Realtor is still in the Biz.????? Oh and as far as it being your fault for not hiring a specialist in VA Loans???? Thats nuts..... If your Realtor dosn't know there are rules surrounding VA, FHA and other types of common everyday loans, that isn't much of a Realtor.....
3. OK, you made an offer on a property (entered into a contract.) The offer had contingencies (a loan contingency, appraisal, etc.) I assume your agent did a good job putting those contingencies into the contract, otherwise it would have been very hard for you to get out of the contract and get your deposit back. Why was an attorney involved? I know that in some States an attorney does what an escrow company does here in California. Was this the case? If this attorney did some work for you, he or she has to be paid. Now, who is to blame for not telling you that this property might not qualify for a VA loan? I think the listing agent (the agent of a seller) is more at fault than your agent. The agent of a seller should have investigated if the property would qualify, the moment he or she heard you were going with a VA loan. Well, too late now anyway.
4. our purchase contracts have it spelled out about VA/ FHA financing--and if it does not appraise, the buyer gets out of the contract and their earnest money back, etc. the LISTING agent should usually know if a property will not pass VA/FHA inspections/appraisal --usually older homes in need of work may not "pass" and i forget what it is about condos & homeowners associations--but VA does not approve all of them--i dont understand why you had to sue or pay an atty to get involved? unless it was a for sale by owner?? if one of my sellers tried to refuse to let you out of a deal when the VA loan could not go through--i think i could talk them into releasing the earnest money and moving on to the next buyer--thats the part i dont get in your situation--what was the listing agent doing? was your agent a dual agent?? did they think you were just trying to flake out on the purchase? i also wonder if they let you get all the way to the point of suing/threatening to sue--and for what? time off the market? they could have just put it back on the market as available and sold it in the amount of time it took to fight you--i just dont get it