This isn’t nice

There’s a house in the Back Country listed for sale for just under $5 million which would be a good price, if the house and its location were better. They aren’t, so I’m not showing it, but I did discover, no thanks to the listing broker, that there’s a $10 million lien on the property, the result of some unfortunate business decisions of the owner. It’s not impossible to sell a house that’s so burdened, but the banks have to cooperate and, since there won’t be any cash coming out of the sale, there’s a real possibility that the buyer’s broker won’t get paid unless an agreement with the liening banks is reached ahead of time.

The Greenwich Board of Realtors is supposed to have a rule requiring listing brokers to show a listing as a “short sale” precisely so as to warn buyers’ agents of this possibility. I could be wrong, but it seems to me this particular broker has violated that rule. If so, nothing would surprise me less.


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5 responses to “This isn’t nice

  1. who who who

    I’m guessing everyone who is a real estate agent in Greenwich must know who you are talking about, but the rest of us are in the dark.

    If someone wants to identify the agent it would help the rest of us avoid the unscrupulous agents.

    • christopherfountain

      Well, Owl (whowhowho yourself!) it’s not really a fraud on buyers, but more of a disservice to the agent and her broker’s colleagues.

  2. anonymous

    Times like these call for greater due diligence than usual

    Identifying a savvy realtor (CF, I tell all my pals considering Greenwich that you’re the guy to call) and real estate attorney will probably be dollars well-spent to uncover any minefields early in process

    Opportunity costs….

  3. anonymous

    It’s the cockroach theory….see one and know there are prob many more

    Stuff like that makes one wonder what other toxins are being misrepresented that do affect buyers and value

    Time is money….why waste one’s time unraveling a suspiciously structured property, esp in a buyers’ market of historic proportions?

    • christopherfountain

      I received a call from another agent who thought I was referring to another property in the Back Country – I was not – I’d forgotten about it – but boy, was she right to remind me. The second house is also priced at about 1/2 of what’s owed on it and there’s no mention of that in its listing.
      The proper procedure these days, my friend and I agreed, is to do a thorough title search before listing a property and a search on behalf of the buyer before wasting much time on negotiating any purchase.