Our present farm has been under threat of eminent domain for a major power line for about the last eight months -- but we do not have a contract or a negotiated price. Local real estate agents have told us that with the threat of eminent domain, we cannot place the property up for sale without disclosing, and that we will not be able to reasonably expect anywhere near fair market value if we try to sell.

We found another farm a few miles away, and, in writing, we requested two 90 day options to purchase the farm from the owner.

The owner, who is also the real estate agent who represented herself and us, was unable to make her next mortgage payment. She bought the farm for investment, and has it secured with her home. She pushed through a contract over Thanksgiving weekend, where she didn't want us to use our lawyer, and convinced us to use hers instead, due to the time constraints. I work out of town, and got the contract late one night via e-mail. I signed it. I did not see or talk to her lawyer. My wife went to the lawyer's office and signed it the next morning. We received no explanations of what we were really signing. It was a two page contract with two 90 day payment schedules and a half-page promissory note. It is all due on May 30.

We didn't know what we really signed until two months after we signed it, after we sent a letter to the owner saying we didn't want to exercise the second 90 day option. She told us we owned the property -- not her. We had to exercise the promissory note. If we default, she has announced that she will sue for approximately $1 million -- $500,000 for the promissory note on the farm, and another $500,000 for the loss of her home, which is the collateral for the property.

We cannot obtain financing for the promissory note. There is not a livable house on the property. We have been told by two banks and Farm Credit that we cannot use our current property as collateral. We've been turned down by all three.

We do have a lawyer representing us, and she has a lawyer representing her. They will not budge in any way. They basically consider it a non-negotiable issue. They have told us to put it up for sale.


If we default, are we liable for anything more than the loss of the six payments we've made so far? Can our wages be attached? Can they force us to sell our current property at a major loss?

There are too many questions here. Without knowing exactly what you signed its really hard to tell. I can't see, however, how you can own a property without a closing. Only at a closing is the deed transferred. Check with the county to see who the deed is registered to. If its not you, you don't own the property

The deed remains in her name. We've never gone to settlement. In front of our lawyers, we have requested that she put the place up for sale. Her lawyer says we both have to put it up for sale jointly. Anything it sells for below the contract price becomes our liability according to her lawyer.

That is her lawyers version, what does your guy say? If the deed is still in her name she owns the property. However, many things do not sound right. She was the real estate agent representing both herself and you, there's a conflict. What does the promissary note say, exactly?

That is her lawyers version, what does your guy say? If the deed is still in her name she owns the property. However, many things do not sound right. She was the real estate agent representing both herself and you, there's a conflict. What does the promissary note say, exactly?

OK - here is a copy of the entire Promissory Note with names blocked out:

http://i108.photobucket.com/albums/n22/arvomaki/misc/2010_05_17_14_13_580001.jpg

My lawyer is very cautious. He is concerned that they can take us to court -- with probably less than 50/50 chance of coming away with a significant judgment, if they can get one at all. He is also concerned about our legal costs of fighting this. But, he is concerned that they can get a judgment, which could force us into a very unhappy situation. At this point he does not yet want to bring a suit against them. He is a general practitioner who does spend a lot of time litigating in court. He is confiding with real estate experts as we speak. He is also a personal friend.

Thanks,
Arvo

One more piece. Here is a copy of the note that the real estate agent / property owner faxed to my wife after our initial meeting and request for an option to purchase:

http://i108.photobucket.com/albums/n22/arvomaki/misc/2010_05_17_14_37_120001.jpg

Crooks threaten to sue all the time, and try to use the court to get money from others.

... She pushed through a contract over Thanksgiving weekend, where she didn't want us to use our lawyer, and convinced us to use hers instead, due to the time constraints. ...
We received no explanations of what we were really signing. It was a two page contract with two 90 day payment schedules and a half-page promissory note....We do have a lawyer representing us, and she has a lawyer representing her. They will not budge in any way. They basically consider it a non-negotiable issue. They have told us to put it up for sale.
...

I hope you know by now that letting her persuade you to "use her" lawyer instead of your own was a very bad mistake. Particularly when you knew that you didn't understand the contract, you shouldn't have signed anything until you got a lawyer working for you to explain it to you.

If her lawyer was aware that you were thinking you were going to "use" him (i.e.: have him advise and represent you), it appears to be a serious breach of ethics for which he can be disciplined. This would be a serious conflict of interest and he shouldn't have had anything to do with it.


... Anything it sells for below the contract price becomes our liability according to her lawyer.

Don't believe what her lawyer tells you. Just ask him one question: "How do you spell 'conflict of interest'?"


... My lawyer is very cautious. He is concerned that they can take us to court -- with probably less than 50/50 chance of coming away with a significant judgment, if they can get one at all. He is also concerned about our legal costs of fighting this. But, he is concerned that they can get a judgment, which could force us into a very unhappy situation. At this point he does not yet want to bring a suit against them. He is a general practitioner who does spend a lot of time litigating in court. He is confiding with real estate experts as we speak. He is also a personal friend.


Fortunately you now have your own lawyer representing you. But since you do, why are you asking us what we think? Presumably your lawyer knows a lot more about this situation than any of us will ever know.

I hope you know by now that letting her persuade you to "use her" lawyer instead of your own was a very bad mistake. Particularly when you knew that you didn't understand the contract, you shouldn't have signed anything until you got a lawyer working for you to explain it to you.


Oh, believe me, we know we made a horrible mistake. We've bought and sold a lot of real estate over the last 40 years, and this is the first time we've done anything this dumb related to a purchase of this size. That obviously is a problem for us, as we well know that not understanding the law is not an excuse. With that said.. . We were under extreme duress from the power company, which was breathing down our neck before they got a 400 day extension in our area, and just plain disappeared from our immediate area. Moving a farm, especially an aquaculture farm that needs lots of water and special facilities, is not something easily done in 90 days.



Don't believe what her lawyer tells you. Just ask him one question: "How do you spell 'conflict of interest'?"

She has multiple lawyers. As this was happening, she was in her 3rd or 4th divorce. The real estate lawyer is not the same lawyer handling her recent divorce and the case against us.


Fortunately you now have your own lawyer representing you. But since you do, why are you asking us what we think? Presumably your lawyer knows a lot more about this situation than any of us will ever know.

I think our lawyer is just as flabbergasted as we are. There is more to this than I can reasonably post. But, if I had an obscure disease, I'd be looking for lots of other suggestions from lots of experts. Well, I have a case that involves more than just normal reasoning. That is a big reason why my lawyer is from three counties away.

Also since the person selling is a real estate agent ( or broker) report them to the license board for this. After you get it straighted out

Also since the person selling is a real estate agent ( or broker) report them to the license board for this. After you get it straighted out

We've looked at that. Actually, in WV we only have 180 days to do so, and that expired on April 30. But, my lawyer said that all they would get would be a slap on the hand that could backfire on us. And, we'd spend a lot more time attempting to discredit them than we'd ever recover.