Comments on: When a relocation company is involved, who owns it?

By: Jim brenneck

Jim brenneck — Fri, 28 May 2010 23:14:33 +0000

Hi Brett
Thanks for both an informative and timely article, I say this because I am involved with a relo property and my dilemma is;
I was informed both verbally and an email telling me the relo company took title to the property,I have an executed agreement of sale with the relo company’s name as owner only to find out that they never took title, what position have I put myself in as a result of this.
I will add that I have consistently requested documentation asking for proof that they have taken title only to be ignorred.
Should this transaction fall apart for whatever reason I feel like I am the only one holding the bag? Any thoughts? And how do I protect myself in the future from this kind of situation,agent beware?
Thanks again,
Jim

By: Pat Moyer

Pat Moyer — Sun, 01 Nov 2009 23:02:54 +0000

Brett,
How would we, as agents working with buyers, know what kind of contractual agreements exist between seller and relocation company? What questions would we need to ask? I’m assuming there are a variety of documents that could be signed by sellers giving authority to relocation company to sign on their behalf. Is the relo company an equitable owner? What are the rights of an equitable owner in PA? The scenario you described seems unusual but then no two transactions are ever the same. Very thought provoking at least.

By: Melanie McLane

Melanie McLane — Sat, 31 Oct 2009 12:05:43 +0000

Brett
Great article! In a class I was teaching the other day, another issue with relo companies came up–which was the relo company receiving, accepting an offer but not returning the written contract for up to two weeks. When it comes back, the acceptance date is two weeks earlier, which may lead to buyer default if the buyer cannot start a loan application without the written agreement. Since delivery is vital, perhaps you and others could draft some language for these circumstances to use as an addendum, stating basically that the clock doesn’t start ticking until delivery.

By: Brett Woodburn, Esq.

Brett Woodburn, Esq. — Fri, 30 Oct 2009 20:08:04 +0000

Any time you introduce additional documents, such as a POA, it is prudent to have the document reviewed by an attorney. The rights conveyed by the POA may be limited, may reserve rights to the seller or may not be drawn in such a way as to meet Pennsylvania statutory requirements. It’s not always easy to determine who owns the property or who has the unilateral right to dispose of it.

By: John Badalamenti, CRS, Prudential Fox & Roach, Wayne, PA

John Badalamenti, CRS, Prudential Fox & Roach, Wayne, PA — Fri, 30 Oct 2009 18:28:35 +0000

Hi Brett:
This article raises a very important question: What about the relo company that has POA which is often the case prior to any relo or corporate client buy-outs?