Work with a bad real estate agent?

On Behalf of | Nov 3, 2021 | Real Estate Transactions |

Many people in Louisiana and elsewhere depend on real estate agents to guide them through the process of buying homes. Unfortunately, not all real estate agents are created equal. Recently, a woman shared her story about how working with a bad real estate agent cost her thousands.

What happened?

The woman, who lives in another state, was residing in a mobile home and wanted to purchase a house. She employed a realtor to help her find a property that fit the bill, and he did, but her debt-to-income ratio was too high to afford the mortgage. Her realtor advised her to sell a trailer she was currently making payments on to rid herself of that debt so she could afford the home — which is where things went horribly wrong.

The realtor printed out fill-in-the-blank contracts he found online to sell the trailer. These contracts offered his client zero security, and the man to whom she sold the trailer essentially walked away with it for free — having only made a couple of payments on it. She, not realizing her original contract prohibited her from selling the trailer until she paid her loan in full, was stuck making payments on it, even though it was no longer in her possession. On top of that, she qualified for the home loan based on information from the realtor saying her debt-to-income ratio had gone down when, in all reality, it had not. So now she is in a home she cannot afford and paying for property she no longer has.

Now what?

This woman is in the process of seeking compensation for her losses through legal means. Her realtor has since passed away, but she has filed claims against the agency for whom he was employed. The owner of the agency has not publicly responded to the complaint. She is seeking $17,500 in damages plus the reimbursement of legal fees.

Be careful who you trust

Buying a home is a big deal, with a lot of money involved. This womans story is a prime example of why people in Louisiana and elsewhere need to be careful who they trust to help them with the process — particularly where contracts are involved. There are a lot of good realtors out there, but when it comes to contracts, having legal counsel for drafting or reviewing these legal documents, is wise.