Excerpt from The Associated Press...
A federal court decision last week cleared the way for real estate companies to purchase thousands of New Jersey and New York property listings held by bankrupt discount brokerage Foxtons.
Rahway, N.J.-based Maplewood Homes will buy more than 3,400 New Jersey listings for $100,000, while Brooklyn, N.Y.-based Fillmore Real Estate is spending $110,000 for hundreds of listings in New York.
The bankruptcy court ruled that Foxtons customers who signed a three- or six-month contract would be customers of Century 21 Atlantic Realty, which has agreed to market the New Jersey homes for Maplewood, or of Fillmore Real Estate, which will market the New York homes.
What is your feedback on this ruling?
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Not a problem.
The listings are an asset of the debtor, Foxtons. They sold an asset for money to pay creditors.
Foxtons could have voided the listings which are executory contracts, but they didn't.
I think its awful. But the law does not always care about what is "fair." However, I think a case could be made that Foxtons was in breach of contract by not answering their phones for a month or personally contacting their sellers on the phone. By failing to provide service during this time, I would argue that the contracts should be null and void.
It shows Foxtons for what it is - a cheap discounter who depended on volume and could have cared less about their sellers. I wish THIS would get more press after Redfin got an hour on 60 minutes, but I'm not holding my breath.
You should see my post on this matter.
Howdy Marcia
This type of thing does need to be in the press more.
Have a good one
The right thing for Foxton's to have done was to allow the sellers to option out of their contracts to re-list with an agency of their choice. But it is no surprise they did not. Their track record, in terms of client service and concern, left much to be desired. That is just one of the reasons they are in this position now.
All, Thank you for your feedback. It's a sad state of affairs. All in all, it reflects badly on the real elstate industry at large. I guess we have to do some damage control now, expecially in the immediately affected areas.