Legal Question in Real Estate Law in California

we are going through shortsale and our agent forged our signature to close the deal ASAP. Now, we not only not know what we "signed" but also were not informed that the deal was close and that we have to leave in a week, which we can't do since we don't have the money. What's worse is that it seems that we also need to pay a promisory note of $2,000.00 we did not agree with. This agent admited to my husband the fact that he forged the signature, but he want us to say that we did sign and that we are just backing up, since this is what he told the buyer and the buyer's agent. We don't know what to do or where to go since we don't have any money. What would be your advise?


Asked on 1/09/11, 1:47 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

When you hire an agent, you give them the legal power and authority to do certain things on your behalf. Usually, signing legal instruments such as sales contracts and deeds in not among the things a real estate agent can do, however, at least without very specific authority to sign that particular instrument. I point this out because I cannot say with certainty whether your agent has committed the crime of forgery, has made a (criminally) innocent mistake in carrying out his duties as your agent, or, possibly, is completely within bounds. Heck, at this point I wouldn't even guess. I do, however, think you should have a "free initial consultation," if you can arrange one, with a local real-estate lawyer A.s.a.p.

If you are unable to arrange this, or maybe as a back-up, contact your local police via a non-emergency number and arrange to make a report of a "white-collar crime" and see what the interviewing officer thinks.

Also, if you have a contact at the lending institution with whom you can work, notify him or her that there is a serious problem with the deal. A short sale takes three parties to close, and if the lender has not yet OK'd the deal, maybe you can either use the lender to stop, or at least explain to you, what is going on.

Lastly, I would remind the licensed real estate professional who is "working for you" that he or she has a duty to protect your interests to the best of his or her ability, and that includes protecting you from and advising you about all aspects of possible problems with the sale.

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Answered on 1/14/11, 3:34 pm

I find it highly implausible that your agent forged your signatures to documents that had to be notarized, unless the notary was in on the forgery. If that really happened, I agree with Mr. Whipple that you should find a local lawyer immediately, as well as reporting it to the police.

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Answered on 1/14/11, 4:50 pm


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