ComplaintsforGlen Oaks Escrow, Inc.

• Initial Complaint

  12/07/2022

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  We are currently with Glen Oaks Escrow of *************. The issue we have had dates to February 2022. We are the buyers of a restaurant. Both Parties signed Escrow as of February 2022 with no further contingencies other than the transfer of the *** license. Once that was completed ********************** was allowed to close. *** was completed and escrow hasn't closed since. We have requested Since March 2022 for escrow to close however the Sellers of the business refused to close escrow without cause. During the process we have evidence of the escrow company's negligence towards the process allowing the sellers to make up their own documents and send from **** Oaks for a docusign without reviews. The escrow company still refuses to close escrow simply because the sellers say no without any reason. We have evidence of negligence and biased performance for the benefit of the seller. We are still waiting for escrow to close and they continue to rely on the seller to allow the closure even though there are not additional contingencies or terms needed to be completed. Escrow has the deposit and all the fees to this date. I will be able to provide supporting documents once I understand the process and get some feedback from the BBB since I am unsure of the process

  Business response

  12/12/2022

  In response to complaint # ******* - In order to close escrow, Escrow must receive mutual written agreement from buyer and seller. Both buyer and seller were unable to come to the agreement for the closing date. Since this is a Bulk sale transaction, the form 226 needs to be resubmitted for transfer of the *** license. ********************** also has prepared an attached amendment for buyer and seller to sign and authorize escrow to close upon approval from *** of transfer license.
  See Attachment/File: BULK - Amendment_ Authorization to proceed.pdf

  Customer response

  12/15/2022

  (The consumer indicated he/she DID NOT accept the response from the business.)
  The response further provides evidence that Glen Oaks Escrow has consistently failed to act as a neutral party and has failed to uphold their professional and legal responsibilities. In this response and attached I will provide details on how Glen Oaks Escrow acted upon the request of a non participant, neither the buyers or seller, multiple times.
  
  Today, December 15, 2022 is the first day we were informed of the reason for the failure to close escrow which was through this BBB complaint. We requested numerous times for Glen Oaks Escrow to disclose why escrow has failed to close since we the buyers fulfilled all contracted agreements and terms. It is not the seller and buyer are unable to come to an agreement for the closing date. It is solely the seller refusing to agree to a date and refusing without cause. Since March 2022, we have provided Glen Oaks Escrow on multiple occasion our approval and agreement to close escrow. It is only the seller refusing to close and Glen Oaks Escrow allowing the seller to dictate without a justifiable cause or cause at all. The seller has not fulfilled their contracted terms, however, we still approved Glen Oaks Escrow to close escrow.
  
  In regards to the bulk sale transaction and the 226 form, we approved and requested Glen Oaks Escrow to proceed with resubmission in September of 2022. Today December 15, 2022 through the BBB is the first time Glen Oaks Escrow has acted upon and provided the requested documentation.
  
  Glen Oaks Escrow is continuing to allow the seller to dictate when to close because the seller wants to add new terms outside of the original signed agreement. We have repeatedly requested Glen Oaks Escrow to close based on the agreement both parties have already signed. While we have agreed and still agree to close on the signed terms by both parties, Glen Oaks Escrow continues to allow the seller to dictate the closure without cause. Glen Oaks Escrow has not put any pressure on the seller to perform or request the seller to provide any information to progress the process. Glen Oaks Escrow is deliberately protecting the seller and allowing the seller to deliberately to prolong closure for their own interest. Why has Glen Oaks Escrow been allowed to deny closing because of the seller's want to add new terms outside the original and signed agreement?
  
  As the buyer, we have completed all of our terms of the contract and have do not have any outstanding. The seller has no justification to deny closure base on the signed terms.
  
  Outlined below and attached are other events Glen Oaks Escrow favored the seller, failed to act as a neutral party, and displayed professional negligence.
  
  In December 2021, Glen Oaks Escrow requested us to sign a new agreement that was not at the seller's request. The new agreement that included:
  Terms that were not discussed
  Revisions to previously approved terms
  Removal of previously agreed terms
  An undiscussed increased sale price
  
  Prior to December 20, 2021 - us and the seller had finalized and had an understanding of agreed upon escrow terms. Due to a particular incident, both parties agreed to and provided Glen Oaks Escrow with a minor amendment which was to include the seller to provide training of operations prior to the close of escrow. It was clearly communicated there are no other changes. On December 20, 2021 we received a request from Glen Oaks Escrow to submit the *** 226 transfer form. At this time, **** Oaks also requested us to sign new escrow terms. However, upon review, Glen Oaks Escrow requested us to sign a document that added terms that weren't discussed, terms that were previous agreed to suddenly altered, and with a price increase to the sale. When questioning the changes, Glen Oaks Escrow said it was at the request of the seller and stated the seller discussed the terms with us and that we approved the changes. This was not true. We confronted the seller, the seller stated he was unaware of the adjustments and were not at his request. It was then realized the request was by his girlfriend. An individual not associated in the sale and explicitly stated in the purchase agreement her role was to assist both parties in the process and was not acting as a realtor, or third party agent.
  
  The issue with providing us with the 226 simultaneously with the undiscussed escrow instructions is the 226 would allow the release of contingencies. Why was Glen Oaks Escrow allowing a neither the seller, buyers, or a qualified/document participating agent facilitate a significant transaction in the process?
  
  The purchase agreement clearly states there is a single Seller in the transaction, ********************************. The purchase agreement also states "Buyers and Seller are known as the "Parties". Agents/Brokers are NOT parties to this agreement."
  
  While the purchase agreement is acknowledged to be a separate agreement outside of escrow. Glen Oaks Escrow stated in the Revised *** Escrow instructions that they received and undersigned the principals of the Business Purchase Agreement. In the same document it states "Escrow Holder is not to be concerned with or liable for any obligations between the parties or their brokers or any items in the Purchase Agreement".
  
  Glen Oaks Escrow at this point was clearly aware of the parties involved which did not include anyone other than the seller, ********************************, and the buyers.
  
  Why was Glen Oaks Escrow allowing a non participant dictate terms and conditions without the seller's or buyers approval? It is perceived the reason is due to negligence or the personal relationship and business interests Glen Oaks Escrow has directly with the seller's girlfriend. Who happens to bring them this escrow contract and is a practicing realtor in the area.
  
  However, this is the first of many incidences Glen Oaks Escrow performed tasks not at the request of the seller or buyer and displayed professional negligence or acted without neutrality.
  
  After our request to now allow *************************** to continue to hinder the process, we requested Glen Oaks Escrow not to perform upon ********************'s requests and to perform solely on the seller's, *********************************
  
  During January 2022 & February 2022 there are significant delays with responses from the Seller and Glen Oaks Escrow. Many communications went cold even with persistent follow *** on our behalf.
  
  In March 2022, Glen Oaks Escrow stated they will willingly close escrow upon the transfer of the liquor license regardless if the append ********************** instructions were met by the seller. Conversation attached
  
  On March 2, 2022 there is a documented phone conversation between us and Glen Oaks Escrows' agent ***************************. In this conversation *************************** openly stated she would close escrow whether or not ************************* completed the pre-close training. The following day we sent an email to verify if there was any confusion, ******* failed to address.
  
  In March 25, 2022, Glen Oaks Escrow continued to neglect our request for the non selling participant to coordinate and dictate the sale. On this day ***************************, the seller's girlfriend, emailed Glen Oaks Escrow falsely claiming we approved the closing of escrow on March 28, 2022. Glen Oaks Escrow then pursued to close escrow. Out of confusion we once again confronted the seller, ********************************, of the request. He again stated he had no idea and was unaware of this request. At the time the email was sent, the buyers were on premise with the seller. This incident is also attached
  
  While many little things in between happened. The most significant display of negligence occurred on April 18, 2022. The seller's girlfriend and licensed realtor who is not listed on the sale, sent a buyer to perform amendment with undiscussed terms and demands. An individual who is not listed as the seller, agent, or any relating or applicable positions sent us a buyer to perform that was illegitimate. We asked Glen Oaks Escrow to elaborate and to explain if it's a valid documentation and binding. Glen Oaks Escrow didn't say anything other than to obtain legal representation. Why is it that a non participant and fraudulent documentation allowed Glen Oaks Escrow to not do their due diligence and inform the seller or us of the illegitimate request. But requested us, and not the seller nor the non participant to get legal representation. At this time we endured additional legal expenses due to Glen Oaks Escrow's negligence of the process and their failure to perform. See full response and appropriately formatted response attached
  See Attachment/File: BBB_Response

  Business response

  12/19/2022

  In regards to the buyer's response We, "Glen Oaks Escrow" continue to strain the fact that we are a neutral third party which is exactly why we need the amendment to be signed by both parties before proceeding with closing the transaction. Because we are a neutral third party, we must have the signed instruction that authorizes us to proceed with the 226 and closing from both the buyer and the seller. And *************************** (Escrow Officer) has expressed this to both the buyer and the seller throughout the transaction. As of today, December 10, 2022, ******* has not received the signed instruction from the Seller. ******* has further reached out to the seller to follow up on the amendment and has also communicated this information to the buyer today.

  Customer response

  12/27/2022

  (The consumer indicated he/she DID NOT accept the response from the business.)
  Glen Oaks Escrow continues to be biased that is impacting us and favoring the seller. During a recent discussion, Glen Oaks Escrow confirmed that both the seller and buyer have completed all terms and contingencies. Their reason to not move forward is due to their willingness to protect the seller and/or themselves. All at our expense. We have constantly requested escrow to close. We've waited weeks and months to hear back from Glen Oaks Escrow prior to the BBB reporting. This is either negligence or at the request of the seller. At the moment **** Oaks is refusing to proceed with the contracted terms themselves. They are creating a new agreement that is not needed by the state, **** or any other organizations or contractually. It is an internal decision among themselves. They are refusing to submit the 226 form to the ************** which would allow escrow to proceed. It is one thing to get a mutual agreement to close escrow, however it is another and separate operation to impose an unnecessary agreement in order to submit documentation to the **** They are simply withholding the submission to the *** at their own decision. The previous times **** Oaks submitted the 226, they did not need such a form since it is not required. The seller and **** Oaks have a relationship that allows the seller to feel comfortable that **** Oaks will not proceed. If **** Oaks did their job and performed the signed and contracted escrow terms, the seller would have to make a decision. However, since **** Oaks imposed a new and not required documentation, the seller knows they do not need to perform because **** Oaks is not willing to perform. If it was a neutral matter, they would inform the seller they are proceeding with submitting the 226 form. Not because it is at our request, but by the contracted terms the seller, the buyer, and **** Oaks have all signed. Glen Oaks Escrow continues to display and act as a biased party by not acting upon the contracted terms. They are simply required to submit the 226 to proceed with the next process of escrow. And why is Escrow allowing the seller to append new terms and purchase agreement items after all parties have signed?

  Customer response

  01/09/2023

  Glen Oaks Escrow and their affiliate, ***********, keep avoiding answering questions we are entitled to know as a customer. We have asked several times when they notified us of specific incidences and they continue to fail to provide the answer. Our most recent response from Glen Oaks Escrow was "UGH>>>>>>>>>>" We simply want to know when we were notified of the seller's denial of closing since they never provided to us and want to know if they notified the seller of each time we requested to close.

  Business response

  02/16/2023

  We have communicated with the buyer through his representative to explain that, as a neutral third party, escrow cannot act without the mutual instructions from both parties. The buyer's representative indicated that this complaint will be withdrawn. 

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