IndiaPost.com

Laws protect elderly in dicey sales transactions
Wednesday, 10.24.2007, 10:09pm (GMT-7)

Dear Steve,
My elderly mother in her early 80s had been tell ing a few people that she wants to sell her large rural property in the near future. Soon, one "friend" brought papers over to her that he said would give him first option to purchase it. She signed with a witness present. It turned out that the papers were part of a real estate sale contract, of which she didn't get a copy. She's received no earnest money either. I've since contacted the buyer's lender to try to stop the sale. I've been told this person has retained an attorney and intends to force her to sell. What can I do to prevent this?

-- Nell

Dear Nell,
Your first move should be to contact the Attorney General's office. Different states have different laws that protect the elderly in questionable or fraudulent sales transactions. You also might try the toll-free Eldercare Locator at (800) 677-1116 to find you state's Area Agency on Aging office, or contact the National Consumer Law Center. However, you should know that it's relatively rare for a party to force an individual to sell a house based on a signed sale contract -- especially a questionable one.

That doesn't mean you won't have to hire a real estate attorney or other qualified attorney to reconcile this mess. Any hints that there was fraud, misrepresentation and inducement in this deal could be grounds to rescind the contract. Without seeing a copy of this signed contract, which the seller apparently "forgot" to leave with your mom, it's hard to say what she agreed to and what your remedies might be.

There is always the possibility she was tricked into signing a portion of a document that was later changed into a contract. (I'll assume you've corralled a copy of it by now.) Meanwhile, other contractual questions loom about the deal's validity. For instance, was there a dollar figure mentioned in the contract? Were there any unusual stipulations or penalties tied to performance or nonperformance by either party? Was the witness to the signing a business associate of the man?

The lending institution you contacted will likely question the "buyer" about your allegations but if the contract appears to be on the up and up, there's a chance it may decide to proceed with the deal. Your attorney might decide to copy the institution on any legal activity involving the case and even threaten to make them a party to the action. (Lenders don't relish dicey transactions these days.)
Steve McLinden