ERA Statewide Realty Duped Grandma!

by Jim Haustein on November 14, 2009

Company Name:: ERA Statewide Realty

A client of ERA Statewide Realty of Cranford, New Jersey put an offer on my mother’s home of 52 years. According to the contract, an additional $33,490 deposit was supposed to be paid by the buyer and held in escrow by ERA Statewide prior to closing. When the buyer walked away from the deal, we put the house on the market again and sold it for considerably less than the first offer. When we tried to collect damages from the deposit, it was brought to our attention that the second deposit was never paid. According to the managing broker for ERA Statewide, their agent knew that the buyer did not pay the second deposit but elected not to advise my mother, her agent or her attorney that this clause of the contract was never executed. ERA Statewide’s managing broker expressed frustration over this incident, adding a comment that she told her agent that she hoped we “sue the bejeezers out of him.” She also indicated that she is in no position to monitor the activities of her agents.

Since we lost all leverage with the original buyers in so far as trying to recoup damages, I advised ERA Statewide that we are holding them liable. ERA Statewide’s managing broker denied all previous statements and indicated that we would “have to go to litigation.” I mailed a certified letter to the CEO of ERA Franchise. He did not have the professional courtesy to respond but his office did advise me that ERA Statewide is independently owned and they could do nothing. Well, they CAN revoke the franchise, you know!

So basically, ERA Statewide duped grandma and the franchise management could care less. ERA Statewide exhibited, in my opinion, unscrupulous and unethical practices; regarding the intentional and willful withholding of information relevant to a real estate sale. Avoid these people like you would avoid Swine Flu!

This post was submitted by Jim Haustein.

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Josh Kaufman August 18, 2010 at 1:42 pm

Jim:

It seems the agent failed his duty as the escrow agent. Did you file a complaint with the NJ Real Estate Commision?