Key West Real Estate Horror Story No.1

People who read my blog are typically looking to purchase a home in Key West. They usually find my blog by searching an address after viewing a property on Zillow, Realtor.com, or even the real Key West mls website. These new prospects often read additional blogs I have written to get a sense of who I am as a person and the services I may be able to provide to them.

Many readers think that they can get a deal by buying a bank owned home because they think they'll get it at a bargain price. During the past couple of years some bank owned properties have been offered for sale via several online auction websites.  I have helped several buyers purchase homes through these sites. One particular online auction turned into a real estate horror story.

I registered the buyer and myself as his agent so that I could be a part of the process and earn a commission if the buyer was the successful bidder. I read the TERMS before signing up.  I warned my buyer up front that the standard Florida Purchase and Sale Contract would not be used but that the contract written by the online auction company would be used instead. That contract was totally written to benefit the bank as seller. I used to be a lawyer. The law describes this type of contract as a contract of adhesion. The thing is if a buyer wants something so badly, he'll probably sign anything just for the chance to get a good deal.

My buyer was the successful bidder in a particular online auction. Thus began the saga that became a minor real estate horror story. After my buyer's bid was accepted, the buyer was required to sign the bank prepared purchase contract - the contract of adhesion I mentioned above. I did my part by providing all the documentation to the bank asset manager who is located in a faraway town.

My buyer was paying cash so there was no third party mortgage involved. The house itself was a total mess. My buyer did not do an inspection as the buyer planned to do a major renovation.

Within the first week or so we received a preliminary title report which showed that the law firm that foreclosed the mortgage omitted a necessary party to the foreclosure' This required the attorney to do a new foreclosure the omitted party. This set back the closing date by several months. Just about the same time my buyer became aware that someone had complained to City of Key West Code Enforcement about yard debris and trash in the front and back yards on the house upon which my buyer had a contract. The City of Key West Special Master imposed a daily fine of $250 on the property until such time as the mess was cleaned up and the fine paid. I got a copy of the FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER and emailed a copy to the listing agent, asset manager, and closing agent all located at the same address in the faraway Florida city. All of the asset management people and title people had Muslim last names except for the real estate agent. I checked with the Florida Real Estate Commission - he is a real person who lives in Florida.

 When neither the listing real estate agent nor the asset manager responded to me, I called both. I left a voice message for the real estate agent. The agent never returned that call nor did he ever respond to any email I sent to him. When I called the asset management company I asked to speak to M**** Mohamed, the asset manager. The first person I spoke with sounded far away, much farther away than the address in Florida where the asset management company's office was located. It was as if I was talking to someone on the other side of the world or that I was speaking on a tin can phone or both. I was asked to call back at a later time. I did and that is when I spoke to Mohamed. I knew then what I suspected earlier that I was talking to someone in India or Pakistan and not in Florida.

I told Mohamed about the code violation and ongoing fine. He asked me to send him a copy of the FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER which I had previously sent to him. I did. Then we began a series of email correspondence about the ever-growing fine.  A few weeks into the process Mohamed assured me the problem had been resolved. He said he initiated a process to hire a vendor to clean up the yard.  During the meantime my buyers left town for a previously planned vacation. I drove by the house to see if the place had been cleaned up. The front yard looked okay but I could see trash in the side yards. I went to the backyard where fallen palm fronts and other debris littered the yard. I took photos. Then I went to City Hall to speak to someone about the property. I was informed that the city would hold my buyer responsible if the bank owner did not clean up the mess and pay the fine by the time we closed.

About five months had passed since the new foreclosure was started.  The title agent emailed me a notice the bank was ready to close. I sent emails to Mohamed and others at the asset management company stating that the code violation constituted a title defect and that the buyer required the bank to pay the fine and get the code violation cleared. Mohamed and the title agent sent a series of written in English but which either intentionally or accidentally never stated that the bank clear the code violation and pay the fine before closing.

I re-read the bank purchase contract (the contract of adhesion). The contract specifically excluded the bank as being responsible for any code violations. I then engaged a local law firm to write a letter to the bank asset manager and title company reaffirming the buyer's position that the code violation constituted a title defect.  Mohamed and the title agent became more responsive to the lawyer who communicated in a non-threatening manner but simply required the bank to clear the title defect before closing. I went to city hall and got a form by which the bank could seek to mitigate (reduce) the amount of the fine which by then had risen to over $20,000. Remember the fine was $250 per day.

I sent the mitigation form to Mohamed who said the contractor he hired to clean up the yard had done so. I told him that whoever he hired picked up trash in the front yard but not the side yards or back yard. I told him emphatically not to mess the government. He finally got the message. The bank extended the closing a few extra weeks so that it could appear before the Special Magistrate to mitigate the fine. The yard was cleaned and the fine was reduced to only $15,000. The bank paid the fine at closing.

But that's not the end of the story. The TERMS disclosed at the online auction site were less than forthright in disclosing all the fees that the buyer would be required to pay. The biggest and most offensive non-disclosure appeared when we received the preliminary settlement sheet. The buyer was required to pay the Seller's State of Florida Documentary Stamp Tax which is calculated at 70 cents per one hundred dollars of sales price. This is always a seller cost, but under the bank's contract shifted this expense to the buyer. While the bank paid the title policy, all of the other title closing costs were likewise shifted to the buyer. The buyer's sole remedy upon learning all the associated fees would be to walk away from the contract, lose his deposit, and not get the property. Buyers do what buyers do: they suck it up and pay the fees.

My buyer closed on the property and got a really good price on what will end up being a very nice home once the renovations are completed. It could have ended differently, however, had I not kept pressing the bank to clear the code violation and pay the fine.  I can't help but wonder if anyone at the real bank with all the Billions of Dollars in assets has any knowledge that the bank asset management company in Pakistan or where it is that Mohamed lives cost the bank $15,000.

The Metalic Man and the Clicker

How in the world could something so innocent as a tiny little metal clicker have to do with buying a house in Key West? How, indeed!

The above photo shows Judge Joseph P. Lewis, Betty the division clerk, Velma the court reporter (stenographer), and me. The photo was taken 43 years ago. I was Judge Lewis' legal staff assistant. I had recently graduated from the University of Denver College of Law when the photo was taken. I had passed the bar and was looking for a job as an attorney. I was 25 at that time. I stood 5'8" tall and probably weighed 135 pounds.  Look at the pic. I don't look very intimidating, and I certainly never lived up to the nickname my dad gave me as a child - Butch. What happened one day at the Jefferson County Hall of Justice in Golden Colorado (that's where Coor's Beer is made) may help you understand the importance of the clicker and how it relates to me as a Realtor 43 years later.

Former Jefferson County Hall of Justice

Walkway from former Hall of Justice to Clerk's Office and County Jail

 Judge Lewis' courtroom was on the forth floor (top floor) of the building pictured above right. The county jail was located about 150 feet away in a separate building.  The county clerk's office was situated between the two. The interior of the Hall of Justice was open from the ground floor to the ceiling of the forth floor with courtrooms or administrative rooms situated on all four sides of the building. Interior walls were blond brick. Noise of any sort sounded throughout the building and even filtered into the courtrooms.

One afternoon I was in the hallway outside our courtroom talking to two Deputy District Attorneys.  A man in his 40's or early 50's exited the clerk's office and began clicking a clicker in rapid succession as he walked the hallway heading toward the elevators.  Back then we did not have police or sheriff's officers in the courtrooms or hallways. Nobody had to pass through a metal detector at the entrance to the courthouse.  We had not yet become a society that was afraid of everything and everyone. So there was nobody to stop this metallic madman from disturbing the solemnity of the courthouse.

I left the Deputy D.A.s and moved quickly to the elevator hall where I grabbed the elevator door and braced my right arm against the door to prevent it from closing. I yelled "Ralph, call the Sheriff!"  Ralph was a older man, probably in his sixties, whose office was located just off the elevator lobby. The clicker man was alarmed when I prevented his exit. He began chopping at my arm with his arm, trying to break my hold. He hit me repeatedly. And it hurt like hell.

Steve Worrell, a fellow classmate from law school, came out of his courtroom into the hall to see what was going on. Steve played football in high school and even though he wasn't much taller than me, he was definitely bigger in size and stature, and surely he wasn't the sort of guy you would want to pick a fight with. I wouldn't call myself a wimp, but I was. Oops I just outed myself as a wimp!

Steve reached past my arm and grabbed clicker man by the shirt and quickly waltzed him straight across the hallway into the marble wall.  I think Steve was about ready to punch the man, but someone either grabbed the man or Steve to prevent things from getting more difficult. Within a couple of minutes a couple of deputy sheriffs arrived. I told them what had happened. They put the man in handcuffs and took him next door to the county jail.

Later that afternoon I got a phone call from the Captain in charge at the jail that day. He asked me to come over and sign the complaint under which the man had been arrested. When I got there the captain made me an offer. He said I could go inside the holding cell and hit the guy. He even offered to have some guards hold him for me so that I could beat the hell out of him. I am as serious as I can be. I don't lie, and I don't make stuff like this up. I told him no and that was the end of that.

The next day the man was arraigned in the courtroom of Judge C. F. Johnson. The Judge had me sworn in, and I related what had happened in the hallway the day before. My recollection is that the man admitted what I said was accurate. He was taken away on a mental health hold for three days. I don't recall anything further ever happening in this regard.  But I will never forget the Captain's offer to let me beat up the guy who had hit me.

Many locals in Key West visit the Monroe County Sheriff's web page CLICK HERE several times a week where we can see who has been arrested and on what charge.  It's not uncommon to see someone we know get picked up for driving under the influence or some other infraction.  Sometimes I see images of people that disturb me.

48 years old when arrested. Disabled and held on municipal ordinance violation

68 years old when arrested for failure to appear

58 years old when arrested for failure to appear

Barbara was 62 years old when arrested for a municipal ordinance violation

None of the offenses would explain how these people got the bruises and lacerations pictured above. There is no justification in my mind that could possibly permit someone in authority to hurt these people.  These pictures are just examples of what you can and will see on a regular basis of people who are processed through the Monroe County Jail. I'm not saying the Sheriff's officers did this and I am not saying a city policeman hit these people.  Somebody did.  

I moved to Key West in December 1993 and have been selling homes since December 1996. I love living in Key West, Florida. I encourage people to move here and fulfill their dream of living in Paradise. I encourage would-be buyers to checkout the Monroe County Sheriff's website on a regular basis - not to see photos of the abused but to see where the defendants live, where they were arrested, and the charges against them. This personal search is a sure fire way to determine for oneself areas of town that a buyer may determine are better than others. Key West is a very safe place to live. Most of our person on person crime occurs between spouses, partners, roommates or people living together. Stranger on stranger crimes are normally bar fights.  

I will never regret not punching the man with the clicker. Never!

811 United Street No. 1, Key West - The Secluded Gardens of Key West

If you have been searching for a private little Key West pied-à-terre with a pool and parking priced under half a million dollars, you ought to consider the absolutely charming one bedroom Secluded Gardens of Key West condo at 811 United Street No. 1.  The listing Realtor, not me, describes this unit this way:

"This is a wonderful corner property; well-maintained, with heated pool and off-street parking. This one bedroom condo is in move-in condition with beautifully renovated kitchen and upgraded bathroom. Located at the quiet end of the island's historic district, this condo is still within easy walking distance of a plethora of activities and good restaurants, art galleries and shopping."

 I dug into my old shoebox and found a photo of the same building that was taken in 1965. The brick building looks somewhat different today. What were once apartments were converted into condominiums. A pool was added together with an additional storage building plus assigned off street parking.

The current owners renovated the kitchen and bathroom. And while all condos have kitchens and bathrooms, most are not as cute as this. The cabinets are white and crisp. A modern day pantry was added to previous wasted space next to the now enclosed washer and dryer. The storage space and functional utility is superb.  There is actually enough space and storage here to live full time and not merely to nuke a Lean Cuisine meal.

The bathroom was totally renovated as well. A storage rail lines the east wall in the very large bedroom. The current owner has a desk in what could also be a seating area. French doors open out to the private deck which looks out to the spa and pool. The assigned parking spot is just outside the white picket fence at the rear. CLICK HERE to view more photos of this property.

811 Untied Street No. 1 has 622 sq ft of interior living space plus both a private front porch sitting area and a covered rear porch that overlooks the pool.  The quarterly condominium association fees are $1275 and cover building insurances, building maintenance, pool maintenance, and management. Also there is an annual $2000 capital contribution.

CLICK HERE to see the Key West mls datasheet and listing photos. Then please call me, Gary Thomas, 305-766-2642, to schedule a private showing.  I am a buyers agent and a full time Realtor at Preferred Properties Key West.  This is a very attractive alternative to owning a larger home with a pool and home ownership bills and responsibilities. Think about that last sentence. You can be sitting on your porch or at the nearby beach instead of fixing stuff that goes wrong.

8 Golf Club Drive, Key West - Key West Golf Club Community

Tucked away and almost out of sight at the Key West Golf Club Community is 8 Golf Club Drive. Even though the house was built in 1996 the Conch style architecture and lushly landscaped yard give this new age home an old house charm. When you walk up to the front porch you see that the porch actually wraps around the side and extends to the back. The irregularly shaped (2784 s.f.) lot runs about 92 ft deep by 26ft+ wide is much larger than many similarly sized homes at the golf course.

The first floor is one large open living area. The washer and dryer art hidden behind bi-fold doors under the stairs. The glass sliders at the rear open out to the large covered rear porch that overlooks the 6th fairway. Steps lead down to the backyard. It was raining the day I took photos otherwise I would have added more golf course photos.

There are three bedrooms located on the second floor. Each bedroom has a vaulted ceiling that adds both height and spaciousness to each room. The two front bedrooms share the hallway bath. The master bedroom with en-suite bath overlook the golf course. The windows on the second floor have wind impact glass. (All first floor windows have approved shutters for windstorm insurance purposes.)  CLICK HERE to see more photos of this home.

The Key West Golf Club Community is really attractive. 8 Golf Club Drive is located near the front entrance just past the security entrance. The smaller community pool is located across the street from this home.  The much larger pool and community center is located in the middle of the development perhaps a five minute walk at most. There's a cute as can be butterfly sanctuary just to the side of the community center. It looks like a nice place to read a book.

CLICK HERE to view the Key West mls datasheet on 8 Golf Club Drive which is offered for sale at $465,900.  Then please call me to set up a private showing. I am a buyers agent and a full time Realtor at Preferred Properties Key West.