Marcus & Millichap - El Segundo, California

Fanny C.

AN UNBELIEVABLE OUTCOME IN AN ARBITRATION CASE

MY MISFORTUNE BEGAN ON MAY 26, 2020. THE DATE I COULD NOT CLOSE ESCROW ON TIME BECAUSE OF A LOAN DELAY ON A REAL ESTATE BUY AND SELL TRANSACTION.

THE SELLER REFUSED TO SELL THEREAFTER AND DECIDED TO KEEP MY DEPOSIT OF $125,000.00.

MY CASE EVENTUALLY PROCEEDED TO ARBITRATION. THE ARBITRATOR, HON. NICKOLAS DIBIASO (RET.), FOUND THAT I HAD ONE MORE EXTENSION REQUEST AS GRANTED TO ME BY THE SELLER PURSUANT TO THE PURCHASE AGREEMENT AND COULD HAVE USED IT. I ARGUED THAT IT WAS THE FIDUCIARY DUTY OF MY AGENT (HIU CHAN OF MARCUS & MILLICHAP) TO ME THAT MY AGENT REQUEST FROM THE SELLER ANOTHER ESCROW EXTENSION AFTER I REQUESTED MY AGENT TO DO SO, AND THAT MY AGENT'S FAILURE TO SEEK OR HIS DECISION NOT TO SEEK ANOTHER AVAILABLE EXTENSION FROM THE SELLER WAS INEXCUSABLE. UNFORTUNATELY, DESPITE FINDING THAT I HAD A SECOND EXTENSION REQUEST AVAILABLE TO ME, AND THAT MY AGENT DID NOT REQUEST IT FROM THE SELLER, THE ARBITRATOR CONCLUDED THAT MY AGENT WAS STILL NOT RESPONSIBLE FOR ANY OF MY DAMAGES BECAUSE I WAS A REAL ESTATE AGENT, AND THEREFORE I SHOULD HAVE REQUESTED MY OWN EXTENSION WHEN I WAS REPRESENTED BY MY AGENT.

AS A RESULT OF THE ARBITRATOR'S DECISION, I LOST MY DEAL WITH THE SELLER, MY DEPOSIT OF $125,000.00, THE SELLER'S ATTORNEY'S FEES AROUND $98,000.00, AND MY ATTORNEY'S FEE AGAINST THE AGENT FOR AROUND $50,000.00. MOREOVER, I HAD TO PAY FOR THE ATTORNEY'S FEE OF $37,500 INCURRED BY MY AGENT.

FANNY CHAN (BUYER)

Hunter B.

ThuHa T.