OfflineHello DG Fam!
Have an issue here in South Florida and would need some advise...
We got a property from an REO (Ocwen Loan Servicing) and we went to see the house as we usually do it being close in the area. We typically put a "House for Sale 3/2" sign outside the house if it is vacant for exposure. It has worked well for us in the past until now.
This morning we get a call from an individual saying they are from Ocwen that we should not have put our sign in the premises of the home since it was not yet sold to us. We explained we had the house under contract and we were just trying to get some additional buyers in the area, it was not for the house specifically. He said he was going to report us to the Legal Dept, reprimand my Agent's License and we should contact our Attorney. That they were also going to put the house back on the market. I did some research on the number and it seemed to be an Inspector for a Property Preservation Company servicing REO Banks, Homes under pressure etc.
I do not know how far they can go...
Wanted some feedback, if anyone has undergone a similar situation?
Do you have an atty there that you work with? It would be best if you contact him/her about this.
Every state is different and any feedback you get on here about this is going to just be opinion and not worth much if they decide to be ugly.
Good luck and keep us informed as to how this progresses.
Karen
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about this matter. Someone in Ohio is also having to secure an attorney for doing this same thing.
Essentially he said, that he received a nasty letter from the City Dept. of Commerce stating that they are investigating him for concerns that I he is acting as a broker; ie practicing real estate without a license and could face massive fines etc. etc. In the process of sending in copies of his contracts to show them the contrary. However he believe they are acting in response to his marketing/ads (marketing a property he didn't actually own etc).
Also is it a cease and desist letter? They need to quote the statute that you are violating give you a set amount of time to comply with a cease and desist. In any event I would contact an attorney.
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If you have not done so, immediately remove that sign. As stated above you should contact a knowledgeable attorney that specializes in Real Estate Law.
This is my opinion. You can not market a property for sale that does not belong to you. By having it under contract you do have "equitable interest" I don't think that would allow you to put a sign on the property.
Of course we ALL market our properties to our buyers before we close when we are wholesaling. We actually have an addendum to our contracts that state that during the inspection period we will have money lenders, investors, contractors and inspectors coming in and out of the property multiple times. We will give reasonable notice before their arrival. Usually one hour if a vacant property, 4 hours if occupied.
We walk a thin line when wholesaling REOs and Short sales. There is a reason they don't allow assignable contracts!! Discretion is the best idea.
Good luck,
Michael
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http://www.mdhomeacquisitions.com Seller site
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The reality is that many wholesalers attempt to put up signs in yards where the property is under contract. This is just one of those instances where a wholesaler was caught.
Legally speaking, you do not have the right to post advertisements in a yard that either you do not own or that has not given permission to do so. You could try to "sneak" a clause in the purchase agreement allowing advertising, but this is going to significantly reduce contract acceptance.
I would recommend doing everything you can to soften the situation before attorneys get involved. This would entail removing the sign ASAP and writing a letter of apology. I know it will be hard to do but it will go a long way and is better than receiving legal action.