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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 100583
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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I have been in the process of trying to sell my house

Customer Question

I have been in the process of trying to sell my house for quite some time. My realtor was contacted by a potential buyer on February 1st and the paperwork was started immediately. After a price was agreed upon between myself and the buyer, the buyer applied for a mortgage (at a bank recommended by the realtor). He was approved with the stipulation that he put 20% down, which he did. After that the contract stipulated that the closing would be at the end of the month at the request of both myself and the buyer. About a month later, the bank requested an additional 20% and a signed letter from the Department of Environmental Control stating that the stream running through the property was passable. The buyer immediately put up the additional funds and the bank was sent the requested letter. They have now requested a signed letter from the real estate attorney stating that the attorney take full responsibility if anything occurs to the property that makes it inaccessible or damaged or destroyed. I have never heard of requirements like this to get a mortgage to buy a home. Are there any laws that the lender is violating by requiring so much unnecessary paperwork? Is there any legal recourse I have against the lender in the event the buyer pulls out of the deal? He has already put up $60k of the original $150k. Is there anything legally I can do to the realtor as he has not been helpful in any way, shape, or form in the entire process? Everything has either been done by myself or the buyer and the standard response from the realtor is 'I don't know' or 'let me look into it' or 'you'll have to do that yourself.'
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  Ely replied 9 months ago.
Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms. I am sorry to hear about this situation. Are there any laws that the lender is violating by requiring so much unnecessary paperwork? No, there is no such law. While a myriad of laws and regulations apply to lenders, "too much paperwork" is not one of them. Is there any legal recourse I have against the lender in the event the buyer pulls out of the deal? I am sorry, but no. The buyer may have recourse here, to possibly file a suit to force the loan if he has already been approved but the lender keeps placing more roadblocks and demands even after approving the buyer. However you have no contract with the lender and cannot sue to force them to loan to the buyer. He has already put up $60k of the original $150k. Is there anything legally I can do to the realtor as he has not been helpful in any way, shape, or form in the entire process? Everything has either been done by myself or the buyer and the standard response from the realtor is 'I don't know' or 'let me look into it' or 'you'll have to do that yourself.' I am sorry, but not really. This is a matter between the buyer and the lender, not the seller and the lender. So here the seller cannot do anything but simply wait until/once the buyer qualifies and gets a lender. Please note: If I tell you simply what you wish to hear, this would be unfair to you. I need to be honest with you and sometimes this means providing information that is not optimal. Negative ratings are reserved for experts who are rude or for erroneous information. Please rate me on the quality of my information; do not punish me for my honesty. I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

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