Real Estate Story 2 – A Lesson Learned

May 20, 2015 at 6:31 pm Leave a comment

by Maria Hass

The Chandelier Custody Battle“That’s My Chandelier!”

I attended a Purchase Contract Writing class earlier this year. The instructor – let’s refer to him as “Realtor X” — told a story that happened during one of his transactions years ago. This story was meant to let Realtors know how writing contracts is very important in closing deals.

The buyer represented by Realtor X went under contract with the seller of a luxurious home. During the walk through, the buyer noticed that the luxurious chandelier in the foyer of the home was missing. He called Realtor X to get the chandelier back, because this chandelier was key to him making the decision to purchase the house.

Realtor X got in touch with the listing agent to recover the chandelier. The listing agent said that the seller wanted to keep it and that the MLS information mentioned that the chandelier would NOT convey with the purchase of the home, and therefore stay with the seller.

The buyer was not happy. He demanded that the seller return the chandelier or credit him the value of the chandelier in order to close escrow. The one-of-a-kind chandelier was appraised and was worth thousands of dollars.

In order to close the deal, Realtor X and the listing agent gave all of their commission towards the chandelier value, and ended up working the sale for FREE.

Lesson learned: The sales contract should have stipulated that the buyer would take possession of the chandelier at close of escrow OR that the chandelier would not convey with the purchase of the home. Both Realtors failed to write it in the contract.

Although the MLS mentioned that the chandelier was not to convey with the home, the MLS it is NOT a binding document – the purchase contract is. One missed item in the purchase contract caused both Realtors all of their commission. It is a lesson not to be forgotten.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate. Tags: , , , , , .

Realtor Story 1 – Lessons To Be Learned Real Estate Story 3 – Why Didn’t You Tell Me the House was Haunted?

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