What happens when a suit is filed to collect on a prommissary note? what should I do?

Asked about 2 years ago - Seattle, WA

I signed a prommissary note for $300,000 as a partial payment for a land purchase and sale agreement. it was not collateralized. The real estate agent I was working with that had the listing on the land proposed that we partner (50/50) on the land purchase, where I would be the front man and he would arrange the private financing of the land where by the promissary note would never come into play. The real estate agent did not obtain the financing and now the note holder wants payment. The note holder has spent money on the development of a master plan for the land site to be purchased. I have a personal Umbrella insurance policy would that cover this type of thing? I do not have a contract with the real estate agent only e mails and texts. I feel I was coerced in this transaction.

Attorney answers (2)

  1. David M von Beck

    Pro

    Contributor Level 10

    3

    Lawyers agree

    Answered . You may have the right to a defense of the lawsuit under your insurance policy. You should have the policy reviewed by a lawyer. You may also have claims against the RE agent even without a written agreement.

  2. Shawn B Alexander

    Pro

    Contributor Level 20

    Answered . I agree with Mr. von Beck and the agent may have some ethical issues with the Department of Licensing. It sounds as if there is more to the story here. You should gather all of your paperwork at once and hire a lawyer and file a claim with your insurance company and demand they defend you.

    Good Luck

    Only If and until you and I sign an Agreement for Legal Services, I am not your attorney. These answers are... more

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