ComplaintsforKC Property Group

• Initial Complaint

  07/23/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  KC Property Group renege on their contract two days ago and said they wanted to only pay me 175,000 instead of the 195,000 as in contract. Everything was fine and confirmed with title company everything was a go. I called their office and said the August 15th date to close and they said that would work. And then the lowball phone call. He said because interest rates increased, housing has slowed and needed the 20,000 concession so he wouldn't lose money and that I should take the loss. I told him that is part of business and if the house went up 20,000 would he have given me 215,000? You know the answer. I honestly think he waited to spring it on me near closing date, knowing I was going to help my son for his new house. I also made commitments on other matters knowing I would have that money on the 15th. I wanted more than 500 earnest money but he said he needed to keep it low for cash flow reasons. He said look up his ratings and references and there was no worry that he wouldn't pay as agreed. Having an A+ with you was very reassuring. I can't believe he would do this and told him I would get the truth out there and he replied "one bad review won't hurt me. Very arrogant individual. Only thing I can think is that he always done well on up market and maybe first time he encounter a down market. Please see if he can honor his contract. I'm a senior citizen am filling scammed and hopefully you can convince him this is not a way to get 20,000 dollars from me.

  

  Business response

  07/23/2022

  Our company recognizes that price reductions and retrades are never optimal. We entered into this contract on 6/7/2022. At that time, the real estate market was much different than it is today (7/23/22). We've seen relentless interest rate hikes and lots of price reductions and pending contracts on the market fall through. In fact, ****** just came out with a statistic that there were 60,000 pending contracts cancelled in June alone nationally, representative of 14.9% of all homes that went under contract. Nevertheless, we are inside of the bounds of our rights as a buyer in this contract as I will explain:

  We decided as a company that because of the external market shift with interest rates, we needed to be at a lower price point on this property in order to make the deal work (we unfortunately also had to have similar conversations with others) - roughly a 10% price reduction. I called Mr. ***** and gave him this unfortunate news as soon as possible - 7/21/22, which is the day that we had 4 cancellations happen to us on our pending contracts (where we were the seller on those). I told him there are three options 1) we can cancel our contract and I can forfeit our earnest money deposit 2) we can have a price reduction or 3) we can help him find a different buyer in good faith. He seemed more interested in option 3, so I reached out to a contact of mine whom represents a hedge fund that buy a lot of properties. He went over to the property, and we received great news! He was able to offer cash even more than what our company's original contract price for Mr. ***** was - our original contract was $195,000 and that hedge funds' offer was $200,000 - a $5K price increase for Mr. *****. I was really happy for Mr. ***** to be able to provide him with a ready, willing and able buyer. However, I was stunned to find out that he did not want them to buy his house. He continued to want to vindictively want to enforce our contract, and my make-right efforts were unfortunately aggressively declined for what I would consider illogical reasons. I am not sure why he did not want to proceed with them as it is his by far his best option. After taking the time speaking with Mr. ***** and trying to encourage him to proceed with that hedge, along with talking to the hedge fund, Mr. ***** just unfortunately did not want that option. 

  At this point, I am left with either cancelling or requesting a price reduction which he also did not agree to. I am within the bounds of our contract to cancel, as with all standard real estate contracts for buyer protection. In fact, I did not have to give up my earnest money deposit either, but I thought that would help him out and let him realize that this is never something that I wanted to have happen. Line Item #5 gives us as a buyer the contingency of the physical condition of the property. According to #5, I could have cancelled the contract as the property condition is not satisfactory at the original price of $195,000, and could have recouped the earnest money. Instead, i realized the inconvenience this caused to Mr. *****, and not only was referring a ready, willing, and able buyer to pay a higher price not good enough, the earnest money deposit did not seem to appease him either. These are  the damages he is entitled to for a buyer breach according to 11.B. So, I have tried very hard in this scenario to make it right by the options mentioned above, and Mr. ***** has unfortunately declined my efforts at every turn even though I referred a cash buyer that offered him more money to buy his house on the same closing date that he had always wanted. 

  Customer response

  07/24/2022

  KC Property group is pretty much lying to you.  He did send a person to make a cash offer. This guy says I can give you more than them. I said Great. He said I would have to release KC Property Group and return their deposit. I said Huh? He said I will give you over twice their escrow. I said Great. Then the bombshell. I will need commissions, a 16 page contract signed, Home inspections, etc . I said if I wanted a real estate company, I would have done that 50 days ago when I signed with *****, a cash buyer. Told him I was not interested. Curriosity got the better of me so I looked up **** ********* that ****** sent over. He is a realtor with ******** ******. So I looked up the house for sale that ****** showed me that he was working on at ***** ****** *** It is being sold by ******** ******. The guy he sent over was his realtor not a cash buyer so think he not only lied to me but is lying to you on his statement.
  
  Bottom line is he offered 195,000 on a contract, things turned bad for him because of interest rates, He waited 50 days and approximate 2 weeks before closing to try to get 20,000 dollars concession out of me knowing that I was in a pickle helping my son to buy another house that he was closing on next week or so. My feelings are if house went up 20,000 would he say I should get the increase. I don't think so. He is in business and makes decisions and contractual obligations based on that time.
  
  I think he should go through with the contract or reimburse me 20,000 dollars, the decrease amount he said happened during the contract period.
  
  Hope you will verify the info I found and question his tactics. I think his realtor buddy was scheming to release *****e and get him back his escrow, sign a new contract with me, with inspections, find something in inspection to void new contract and walk away. 
  
  I think ****** had a good thing going during an up market but true colors came out during this down market.
  
  There is now way he should keep his A+ rating and have people like me rely on. 
  
  Thanking you in advance
  ****** *****
  
  Any questions call me ************

  

  Business response

  07/26/2022

  I sent over **** ********* to Mr. ***** house in good faith to help him get his house sold. **** is a real estate agent and exclusive representative for ** ********* ***** ***** **** - a hedge fund that owns over 15,000 homes nationally. As a hedge fund, they purchase homes for cash and as-is, and they are a ready, willing, and able cash buyer that was able to offer more than I did on Mr. ***** house and close on the same date he wanted. He is one of my best contacts in the business. Quite frankly, sending him over to the house is not something that I needed to do, I just wanted to help Mr. ***** out. I could have exercised my contingency on line item #5, recouped my earnest money, and walked away from the deal. I did not do that either. Instead, I referred him a buyer with a better deal and when he declined that buyer, I even willingly forfeited my earnest money to Mr. *****. I am unclear as to why a standard real estate contract is a bomb shell, or getting an inspection on a house being sold is a problem? I am unclear as to what Mr. ***** means "if I wanted a real estate company" in his response. KC Property Group is a real estate company. And, **** is a real estate agent with his license hung at ******** ******. We have no shared business interests other than arms-length transactions to where **** *** has acquired properties that KC Property Group has sold them in prior deals. Other than previous transactions, **** is not a representative nor affiliated with our company. He's simply a business colleague that I've done deals with in the past. Entirely unrelated to him, ******* ****** has our house listed down the street at **** * ****** **, and she happens to also hang her license at ******** ****** ********* (as do many agents in Kansas City). 

  I called Mr. ***** as soon as I calculated the deal would not work for our company any longer. In fact, that day was a very bad one for our company with numerous cancellations happening to us as the seller. I made sure to call him with haste because I knew of his desired 8/15 closing date, and wanted to make sure that a solution could be provided to still have his property get sold by that time. I did not wait until "2 weeks before closing" - this date of 7/22 is over 3 weeks before the 8/15 closing. Regardless, I found a solution for him and he rejected it.

  I don't know what else to say here, other than I tried to help him out. It is unfortunate that our company could not purchase the house for $195,000. But, we have every right contractually as a buyer protection for these exact circumstances (Major market shifts) to cancel a contract or renegotiate. I've not seen a transaction in our many hundreds of deals where a buyer does not have this right. I could have walked away from this contract and left him high and dry, but as you see with my efforts I went above and beyond to provide a solution that is being rejected, and now he is making allegations to us like we planned this intentionally, using phrases such as "my tactics", "realtor buddy", etc. Keep in mind, this is also after I willingly forfeited the Earnest Money on the deal when I did not need to. 

  Customer response

  08/03/2022

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Assumed Answered]
  
  Complaint: ********
  
  I am rejecting this response because:
  
  Regards,
  
  ****** *****

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