Requesting Proof of Funds

[BananaE29]

I have two "interested" parties now in my B&B. Both have come for a showing, I've spent about an hour with each. One has booked a couple of rooms for a week from now, so she can get a second look and discuss it with her family who is joining her on her stay. I've no doubt that she is going to ask for financial info, and so my realtor has already advised her to send her pre-qualification letter and non disclosure statement ahead of her stay.

The other party is now asking for financial information (without a second showing), but claims he would be paying cash and doesn't have a pre-qual letter. When asking him for proof of funds, what exactly am I requesting? A bank letterhead monthly statement showing his funds, or ?

 

[EmptyNest]

OH WOW..St. Joseph must be working overtime for you.
Sorry but no one sees the REAL full disclosure finanacials without either of things even if they are paying cash. How do you know what they have? Trust them...I doubt it!!!!
Ask your attorney what you need. It must be official.

 

[BananaE29]

OH WOW..St. Joseph must be working overtime for you.
Sorry but no one sees the REAL full disclosure finanacials without either of things even if they are paying cash. How do you know what they have? Trust them...I doubt it!!!!
Ask your attorney what you need. It must be official..

I don't have much faith in this second person, but you never know. And I don't have an attorney - have never had a need for one, thank goodness. The realtor seemed at a loss what to really ask for also (sigh - I know).

 

[gillumhouse]

Now is the time to GET a lawyer. You are selling something that is NOT chump change. #1 - lawyer should have gone over realtor contract. #2 - lawyer needs to go over sales contract with you - listing what goes with B & B, what goes with you, what gets conveyed at extra cost and what that cost is. AND you need someone looking at tax implications. I am so glad we took the "one time exemption" when we sold the Illinois house. It no longer exists is the main reason but at the time we did it because I knew we would never have that much profit on a house in WV.
And ask someone you trust - someone who actually HAS money - which lawyer you should get. Do not just pick a name from the phone book.

 

[Madeleine]

You want the same non disclosure from cash guy. Along with a letter from his bank stating he has the cash he says he has.
If it's in cash in his mattress you have no idea if it's legit and if he's going to get caught and you're in the middle of something shady.
You're selling your business without a lawyer looking over the paperwork? You know THEY will have a lawyer working for their interests.
You also want a Realtor who knows how to sell businesses. You shouldn't have to ask us!

 

[Copperhead]

You want the same non disclosure from cash guy. Along with a letter from his bank stating he has the cash he says he has.
If it's in cash in his mattress you have no idea if it's legit and if he's going to get caught and you're in the middle of something shady.
You're selling your business without a lawyer looking over the paperwork? You know THEY will have a lawyer working for their interests.
You also want a Realtor who knows how to sell businesses. You shouldn't have to ask us!.

You're selling your business without a lawyer looking over the paperwork? You know THEY will have a lawyer working for their interests.
You also want a Realtor who knows how to sell businesses. You shouldn't have to ask us!

DITTO - Get a real estate lawyer, not just any one in the book. And just because someone has a realtor license does not mean they know about business sales. If you signed an agreement with this realtor, you need to have them get their broker to work this deal, the broker should be savvy in business sales and work with your lawyer to handle this.
Do not disclose anything unless they can prove to you they are qualified.
Good luck! Hope #1 works out.

 

[TheBeachHouse]

Th eperson with cash needs proof of funds. If your realtor doesn't get that, ask him to ask his supervisor. Or get a different realtor. This is a business deal. If the guy really has the cash, there is no reason on earth not to prove it to you at this point.

 

[BananaE29]

The problem here does appear to be with my realtor. She does not seem to know what type of documentation would be satisfactory in providing proof of funds. I emailed her last night and expressed my concern that I was the one doing the leg work here, trying to figure out what a potential buyer needed to show. I would think this is standard protocol. She knows I wanted pre-qualified buyers only so as not to waste my time. So when the potential buyer says he has cash, and doesn't need a pre-qualification letter, why doesn't she know exactly what is needed?

This is not a small town, but everyone knows everyone. She came highly recommended and is one of the top agents here. If I "fire" her (not just for this instance, there have been some other smaller things that have bothered me also), I'm worried that other agents may keep their buyers away. It has happened, believe me. I'm documenting the various things that are occurring, but I am quickly becoming very unsatisfied with my realtor!

 

[EmptyNest]

The problem here does appear to be with my realtor. She does not seem to know what type of documentation would be satisfactory in providing proof of funds. I emailed her last night and expressed my concern that I was the one doing the leg work here, trying to figure out what a potential buyer needed to show. I would think this is standard protocol. She knows I wanted pre-qualified buyers only so as not to waste my time. So when the potential buyer says he has cash, and doesn't need a pre-qualification letter, why doesn't she know exactly what is needed?

This is not a small town, but everyone knows everyone. She came highly recommended and is one of the top agents here. If I "fire" her (not just for this instance, there have been some other smaller things that have bothered me also), I'm worried that other agents may keep their buyers away. It has happened, believe me. I'm documenting the various things that are occurring, but I am quickly becoming very unsatisfied with my realtor!.

The realtor works for YOU! FIRE THE PERSON and get someone who knows what they are doing. This is your business..not just a house. She needs to understand that and be a professional. If she can't find someone who is.

 

[TheBeachHouse]

The problem here does appear to be with my realtor. She does not seem to know what type of documentation would be satisfactory in providing proof of funds. I emailed her last night and expressed my concern that I was the one doing the leg work here, trying to figure out what a potential buyer needed to show. I would think this is standard protocol. She knows I wanted pre-qualified buyers only so as not to waste my time. So when the potential buyer says he has cash, and doesn't need a pre-qualification letter, why doesn't she know exactly what is needed?

This is not a small town, but everyone knows everyone. She came highly recommended and is one of the top agents here. If I "fire" her (not just for this instance, there have been some other smaller things that have bothered me also), I'm worried that other agents may keep their buyers away. It has happened, believe me. I'm documenting the various things that are occurring, but I am quickly becoming very unsatisfied with my realtor!.

I get the small town thing. You have to be careful when p!ssing off someone who everyone likes. I would have a chat with her and tell her, I don't want to talk to them without qualification. Simply stating that one has cash does not count as qualification.

 

[BananaE29]

The problem here does appear to be with my realtor. She does not seem to know what type of documentation would be satisfactory in providing proof of funds. I emailed her last night and expressed my concern that I was the one doing the leg work here, trying to figure out what a potential buyer needed to show. I would think this is standard protocol. She knows I wanted pre-qualified buyers only so as not to waste my time. So when the potential buyer says he has cash, and doesn't need a pre-qualification letter, why doesn't she know exactly what is needed?

This is not a small town, but everyone knows everyone. She came highly recommended and is one of the top agents here. If I "fire" her (not just for this instance, there have been some other smaller things that have bothered me also), I'm worried that other agents may keep their buyers away. It has happened, believe me. I'm documenting the various things that are occurring, but I am quickly becoming very unsatisfied with my realtor!.

The realtor works for YOU! FIRE THE PERSON and get someone who knows what they are doing. This is your business..not just a house. She needs to understand that and be a professional. If she can't find someone who is.
.

I agree with both you and Beach House. It's a slippery slope here, and I'm at a place with two serious parties. So I have to be careful. I don't want to screw myself. Those realtor contracts are long with a lot of legal terms, so it's not as though I can fire her and still sell to either one of these people. Realtors are protected against sellers doing this, to get out of paying commission. My brother in law is a realtor, and he is advising me on several points, so it's not as though I'm totally without someone knowledgeable helping me. I just need to be careful - not only for legal purposes, and possibly losing a sale, but again, because it's a small town.

 

[MtnKeeper]

You want the same non disclosure from cash guy. Along with a letter from his bank stating he has the cash he says he has.
If it's in cash in his mattress you have no idea if it's legit and if he's going to get caught and you're in the middle of something shady.
You're selling your business without a lawyer looking over the paperwork? You know THEY will have a lawyer working for their interests.
You also want a Realtor who knows how to sell businesses. You shouldn't have to ask us!.

You're selling your business without a lawyer looking over the paperwork? You know THEY will have a lawyer working for their interests.
You also want a Realtor who knows how to sell businesses. You shouldn't have to ask us!

DITTO - Get a real estate lawyer, not just any one in the book. And just because someone has a realtor license does not mean they know about business sales. If you signed an agreement with this realtor, you need to have them get their broker to work this deal, the broker should be savvy in business sales and work with your lawyer to handle this.
Do not disclose anything unless they can prove to you they are qualified.
Good luck! Hope #1 works out.
.

I was a realtor for years but I did residential real estate sales - it's a whole different ballgame selling commercial properties. You need to ask your broker to get someone on their staff who is a pro with commercial sales to help them work this deal. If they have to pay that person a % of their commission to do so, then that's their issue, not yours. They took the listing to sell a commercial property so they darn well need to get themselves up to speed or bring on a helper to get this done. I know their contracts are long and involved, but they have a fiduciary duty to you to do their best and not knowing what to do is not living up to their fiduciary duty to you the client.

 

[Sunshine]

The problem here does appear to be with my realtor. She does not seem to know what type of documentation would be satisfactory in providing proof of funds. I emailed her last night and expressed my concern that I was the one doing the leg work here, trying to figure out what a potential buyer needed to show. I would think this is standard protocol. She knows I wanted pre-qualified buyers only so as not to waste my time. So when the potential buyer says he has cash, and doesn't need a pre-qualification letter, why doesn't she know exactly what is needed?

This is not a small town, but everyone knows everyone. She came highly recommended and is one of the top agents here. If I "fire" her (not just for this instance, there have been some other smaller things that have bothered me also), I'm worried that other agents may keep their buyers away. It has happened, believe me. I'm documenting the various things that are occurring, but I am quickly becoming very unsatisfied with my realtor!.

The problem here does appear to be with my realtor. She does not seem to know what type of documentation would be satisfactory in providing proof of funds. I emailed her last night and expressed my concern that I was the one doing the leg work here, trying to figure out what a potential buyer needed to show. I would think this is standard protocol. She knows I wanted pre-qualified buyers only so as not to waste my time. So when the potential buyer says he has cash, and doesn't need a pre-qualification letter, why doesn't she know exactly what is needed?

This is not a small town, but everyone knows everyone. She came highly recommended and is one of the top agents here. If I "fire" her (not just for this instance, there have been some other smaller things that have bothered me also), I'm worried that other agents may keep their buyers away. It has happened, believe me. I'm documenting the various things that are occurring, but I am quickly becoming very unsatisfied with my realtor!

Are you sure you don't live in 'my town'?? Thats exactly what realtors here do!!!

 

[BananaE29]

The problem here does appear to be with my realtor. She does not seem to know what type of documentation would be satisfactory in providing proof of funds. I emailed her last night and expressed my concern that I was the one doing the leg work here, trying to figure out what a potential buyer needed to show. I would think this is standard protocol. She knows I wanted pre-qualified buyers only so as not to waste my time. So when the potential buyer says he has cash, and doesn't need a pre-qualification letter, why doesn't she know exactly what is needed?

This is not a small town, but everyone knows everyone. She came highly recommended and is one of the top agents here. If I "fire" her (not just for this instance, there have been some other smaller things that have bothered me also), I'm worried that other agents may keep their buyers away. It has happened, believe me. I'm documenting the various things that are occurring, but I am quickly becoming very unsatisfied with my realtor!.

The problem here does appear to be with my realtor. She does not seem to know what type of documentation would be satisfactory in providing proof of funds. I emailed her last night and expressed my concern that I was the one doing the leg work here, trying to figure out what a potential buyer needed to show. I would think this is standard protocol. She knows I wanted pre-qualified buyers only so as not to waste my time. So when the potential buyer says he has cash, and doesn't need a pre-qualification letter, why doesn't she know exactly what is needed?

This is not a small town, but everyone knows everyone. She came highly recommended and is one of the top agents here. If I "fire" her (not just for this instance, there have been some other smaller things that have bothered me also), I'm worried that other agents may keep their buyers away. It has happened, believe me. I'm documenting the various things that are occurring, but I am quickly becoming very unsatisfied with my realtor!

Are you sure you don't live in 'my town'?? Thats exactly what realtors here do!!!
.

Apparently a lot of things are done different here.

 

[Kay Nein]

I'm so sorry you are going through this. I agree, that you really, really need that lawyer on your side. As soon as this inept realtor sees that you've enlisted the help of an attorney, she will do whatever she needs to do to step up her game. It's a big expense, but in the long run it could save you money paying for itself.
I work with a mortgage company and just called them to get their take on the "cash" dude. They said to make him get a letter from his bank. I'm skeptical, so they said that you can then call the bank and speak with the person who signed the letter to verify that it is correct. I would call the number from the phone book (haha, do you have one of those things?), not the phone number on the letterhead.
They also said that a cash deal can be closed within a week or two, whereas a mortgage deal will take a month or more.
Is there any way that you could call into the real estate office anonymously and ask if they have an expert on commercial sales? Ask a bunch of questions in general and then throw in these "pre-qual" questions also. Maybe have a friend call with a fake business and you listen in.
Good Luck!!

 

[TheBeachHouse]

The bank mortgage officer should know how this works, too.

 

[Skamokawa]

I'm so sorry you are going through this. I agree, that you really, really need that lawyer on your side. As soon as this inept realtor sees that you've enlisted the help of an attorney, she will do whatever she needs to do to step up her game. It's a big expense, but in the long run it could save you money paying for itself.
I work with a mortgage company and just called them to get their take on the "cash" dude. They said to make him get a letter from his bank. I'm skeptical, so they said that you can then call the bank and speak with the person who signed the letter to verify that it is correct. I would call the number from the phone book (haha, do you have one of those things?), not the phone number on the letterhead.
They also said that a cash deal can be closed within a week or two, whereas a mortgage deal will take a month or more.
Is there any way that you could call into the real estate office anonymously and ask if they have an expert on commercial sales? Ask a bunch of questions in general and then throw in these "pre-qual" questions also. Maybe have a friend call with a fake business and you listen in.
Good Luck!!.

A cash deal two year ago took 3 months for us. (We were the buyers). It was a short sale with few complications. Get as much info as you can and work with the most knowledgeable person you can find. Worth the $.

 

[Kay Nein]

I'm so sorry you are going through this. I agree, that you really, really need that lawyer on your side. As soon as this inept realtor sees that you've enlisted the help of an attorney, she will do whatever she needs to do to step up her game. It's a big expense, but in the long run it could save you money paying for itself.
I work with a mortgage company and just called them to get their take on the "cash" dude. They said to make him get a letter from his bank. I'm skeptical, so they said that you can then call the bank and speak with the person who signed the letter to verify that it is correct. I would call the number from the phone book (haha, do you have one of those things?), not the phone number on the letterhead.
They also said that a cash deal can be closed within a week or two, whereas a mortgage deal will take a month or more.
Is there any way that you could call into the real estate office anonymously and ask if they have an expert on commercial sales? Ask a bunch of questions in general and then throw in these "pre-qual" questions also. Maybe have a friend call with a fake business and you listen in.
Good Luck!!.

A cash deal two year ago took 3 months for us. (We were the buyers). It was a short sale with few complications. Get as much info as you can and work with the most knowledgeable person you can find. Worth the $.
.

Yuck!! Wonder if it is due to different states and regulations. The MTG company I spoke with was in FL.

 

[BananaE29]

I am so exhausted from dealing with my realtor that I've drafted a letter (not sent yet) terminating our contract. Selling your home and your business is stressful enough, but I am finding myself more upset with the realtor's actions, or lack thereof, than anything else. I am basically holding her hand through this process - finding disclosure statements on line for her to supply buyers with (because their office has never used one!), repeating to her that I need pre-qualified parties before I release info (seriously have told her this at LEAST four times), and now she's questioning why I need these things, because well "No other business transaction that I've handled have ever requested these things". WTH?!?! This person is one of the top three realtors in the city. And their office is very well known. It's crazy scary how informal things are done around here.

I'm at my wit's end. I am a bit worried about scaring off the one prospective buyer that booked a couple of rooms for next week, but I can't keep dealing with this realtor. My plan is to phone her after firing the realtor and to let her know that I am no longer represented. I know there is a 30 day waiting period before I can sell to her without having to pay the realtor the commission, but I'm more worried about making her nervous and scaring her off.

Edited: The buyer that said he had cash and was told I needed a notarized statement from his bank stating same will not provide a letter as he claims his funds are tied up in stocks and bonds. So be it. Adios.

 

[EmptyNest]

I am so exhausted from dealing with my realtor that I've drafted a letter (not sent yet) terminating our contract. Selling your home and your business is stressful enough, but I am finding myself more upset with the realtor's actions, or lack thereof, than anything else. I am basically holding her hand through this process - finding disclosure statements on line for her to supply buyers with (because their office has never used one!), repeating to her that I need pre-qualified parties before I release info (seriously have told her this at LEAST four times), and now she's questioning why I need these things, because well "No other business transaction that I've handled have ever requested these things". WTH?!?! This person is one of the top three realtors in the city. And their office is very well known. It's crazy scary how informal things are done around here.

I'm at my wit's end. I am a bit worried about scaring off the one prospective buyer that booked a couple of rooms for next week, but I can't keep dealing with this realtor. My plan is to phone her after firing the realtor and to let her know that I am no longer represented. I know there is a 30 day waiting period before I can sell to her without having to pay the realtor the commission, but I'm more worried about making her nervous and scaring her off.

Edited: The buyer that said he had cash and was told I needed a notarized statement from his bank stating same will not provide a letter as he claims his funds are tied up in stocks and bonds. So be it. Adios..

get a lawyer and sell the place yourself. youare doing the realtors work for her! Get rid of her asap!