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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39155
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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Effective Jan.30,2009 we have officially filed bankruptcy (Chapter

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Effective Jan.30,2009 we have officially filed bankruptcy (Chapter 7). We own several properties, one of which we have had on the market since 10/01/08 (6 mo. contract) We notified the agent of this and she wanted us to ask our attorney could she do the short sale. hold it. I do not know enough about this to go through with her request. should we cancel our contract? Our we liable to the agent for anything? Do we owe the R/E agent anything for whatever services she rendered. Are we in violation of the agent/prinicple agreement, because we are filing Bankruptcy without her prior knowledge? The agent wants to try to sell the property as a "short sale" so long as it gets done before the trustees take over. That made uncomfortable, she is talking to me vial email, and she is a Broker, who should know what short sales are all about. She could not get one offer for the property, but now she sounds confident that she can get a contract before the trustees take over. What are my rights?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 8 years ago.

You can't sell anything without the bankruptcy trustee's consent. The trustee will probably consent to a short sale, because there's no money in the property for any creditor -- short sale or not. But, without that consent, you coud have the entire deal signed, sealed and delivered, and the trustee could simply say, "no," and that would be the end of it -- after which, you could get sued by the buyer for misrepresentation, and because the sales contract was entered into after the bankruptcy was filed, you would be personally liable to the buyer for damages, with no protection available from the bankruptcy court.

 

So you may want to consider getting the bankruptcy trustee's consent first.

 

 

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Customer: replied 8 years ago.
Have I violated any of the terms of agreement between the broker and I?