On March 27 my wife and I signed a contract to purchase a home. The seller was represented by Reece and Nichols. We put $1000 down on this home and had financing for the rest. We also spent $500 in home inspections. According to the contract we signed the earnest money was to be sent to the title company. My wife and I sold our trailer and prepared to move into our first home on the closing date. We sold for less than what it was worth so we wouldn't be making payments in two places.
Shortly before closing Reece and Nichols called and at the sellers request wanted to amend the contract. Apparently the seller failed to pay his child support and a lien had been placed on the house many month prior. A lien that the seller failed to disclose and Reece Nichols failed to find before listing the house. They asked if we wanted to pay his child support to clear the title. This would have put us over what market was on this house so we told them we were holding to the contract. Three days before closing the seller notified us he was not closing.
Reece and Nichols wanted us to sign a release feeing their client from suit and if we would they would authorize the return of our earnest money. Their client would refund our $500. Our losses exceeded $500. Our mobile home had to be sold $5000 below list value, all of our stuff had to be put into storage, and we were homeless. We refused.
We called the title company to explain the issue to them, they were sympathetic and agreed that returning the money was proper, only Reece and Nichols had not given them the money as the contract specified. They had kept it. We contacted them in person and in writing requesting the return of our earnest money. Each and every time they refused. We contacted an attorney. The attorney has fought with them years now.
Their client filed bankruptcy to avoid the suit which further complicated things. Now Reece Nichols has to be sued separately. Two years ago we were notified by Reece and Nichols they were turning our unclaimed money to the state. Our realtor called them and again explained things to them and again notified them of the claim. He further notified them due to their unscrupulous behavior he would no longer show Reece and Nichols homes. The attorney also verified the claim so the negations continued.
October Reece and Nichols agreed to return the money if we obtained a release from the seller. We obtained that release but no check. Each and every time they dangle the check and make us jump through hoops, each and every time they find another excuse not to give us the check. They stated they gave the money to the state and that it was not recoverable. If they didnt have the money why have us obtain the release? They further stated to the attorney that they did not feel the suit over the earnest money mattered. Legal action will continue, but this is a warning to all home buyers. If you have to buy a home from a Reece and Nichols seller send your earnest money to the title company direct. No not trust Reece to do it for you!
I have purchased a home since. These are hard times for home sales and I was lucky enough to have money to buy. I looked at 5 homes in my neighborhood, 4 were shown by Reeceand Nichols 1 was not, all were equal homes. I purchased the home not represented by Reece and Nichols. They already ripped me off once, never again. Let that be a lesson to home sellers.
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