Real Estate 101: A contract signed under duress isn’t valid, but what is duress?

By
Real Estate Agent with Keller Williams Realty

I remember from real estate school that if someone signs a contract under duress, the contract is invalid, but what is duress? Duress, to me, is someone holding a gun to your head and saying sign or die. But, there are, of course, lesser meanings to it.

So, how does this come into play in real estate today? Let us look at someone in a short sale situation who has lost their job. They have two banks, the first is getting all their money and the 2nd is taking a huge hit or getting absolutely nothing. If they make the seller sign a contract to pay back the money, or they won’t agree to the short sale, is this a form of duress? Is the contract valid?

Inquiring minds want to know?

OK, here is the story behind this question. I was asked this by a client who was trying to be forced in to signing this exact contract to pay back the 2nd what they were going to lose. I told him I didn't think it was because they weren't holding a gun to his head, but I said I would ask the experts and let him watch the answers and let him decide for himself.



Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739





©2009 Todd Clark - Real Estate 101: A contract signed under duress isn’t valid, but what is duress?

Posted by


Todd Clark (broker w/ Ken's Home Team)
Keller Williams Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573

 

 

 

 Follow Todd Clark on FacebookVisit my websiteFollow me on Twitter



 I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.

 

What if there was a way you could search the  MLS for FREE just like Realtors

Now you can access the MLS using similar tools as Realtors. You are in control of what you want to search for, and you can search the MLS at your leisure. The information you submit in the form below can also be used to put you on an automated system where you'll be emailed all homes that meet your search criteria. You'll get internet access to a website that includes pictures, prices, and addresses to real estate that's listed in the MLS!

5 Star Professional 2011  5 Star Professional 2012

MyFreeCopyright.com Registered & Protected

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
Club Chaos
Diary of a Realtor
ETHICS and the REALTOR
"Whacked"!!!
Tags:
signing under duress
valid contract

Comments 11 New Comment

Rainmaker
246,885
Paula Swayne
Realtor-Land Park, East Sac & Curtis Park -Dunniga
Dunnigan, Realtors, Sacramento (916) 425-9715

Hi Todd!
It is an interesting question, but I would tend to agree with my fellow Rainers...it is a tremendous amount of stress, but there are options, ugly as they might be.

May 24, 2009 11:36 PM
Rainmaker
499,878
Lisa Wetzel
CDPE, SFR carsonvalleyland.com
RE/MAX Realty Affiliates

Todd - I don't think you will be voiding the contract on this one. Great rhetorical question, but realistically, if there was enough money in the program to fund a lawsuit they wouldn't be selling short.  Also, there are options that will not result in physical harm, i.e.- foreclosure, bankruptcy, etc. 

May 25, 2009 10:59 AM
Anonymous #9
Anonymous
jojo

Why wouldn't you advise your client to consult an attorney as this is a legal question.

May 25, 2009 11:24 PM
Rainmaker
720,883
Richard Weeks
Realtor, Associate Broker - Manager Business Development
Waller Group

Duress is defined as unlawful pressure.  The foreclosure process is not unlawful.

May 26, 2009 05:59 AM
Ambassador
2,030,429
Todd Clark
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
Keller Williams Realty

Well, everyone after I had him talk to a lawyer and read your advice he decided that those late night infomercials that wanted his $995.00 to help them avoid foreclosure were a scam.

June 21, 2009 11:41 PM
Ambassador
2,030,429

Todd Clark

Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pants to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Helping Families Home is a blog set up to help families find that perfect home for them. I have a family and I understand how hard it can be to find a home that everyone is happy with. Let me help you find that home and help your family home.


Find out why I'm a happy grasshopper