Dear Mr. Feichthaler:

I am seeking to relocate to Cape Coral, and I visited last week. I drove by a house that had a “For Sale by Owner” sign, so I knocked at the door. Before you know it, I signed a cash offer to purchase the house, the owner accepted. I gave the owner $7,000 cash, and left after getting his information.

Well, I have tried to reach the owner since I left, but he has not responded. I looked at the contract again and it appears to be lacking some important items, like the address or other description of the property. Do I have reason to be concerned?

– Tyler W.

Dear Tyler:

YES! I recommend you seek legal counsel immediately to assist you in this matter. I don’t normally answer the question so emphatically, but the facts you give raise a lot of red flags, some of which may take swift action to potentially recover. First, based on the facts you present, you may not even be sure you are dealing with the owner of the property. A tenant could very well have placed that sign, or the owner could have to sell a property he was renting. Either way, unless you know for sure whom you are dealing with, never give someone cash. I recommend every purchase be accompanied by a title insurance policy, and that buyers entrust their property deposit with the law firm handling the closing and title work or their own firm. If not, it could prove difficult or impossible to recover those funds if the sale does not reach completion.

The offer you signed may also have several pitfalls. With no address written on the contract or other description, what exactly are you buying? It could be an unbuildable lot in Punta Gorda for all you know. If we ever ended up in court, the contract would likely be considered void on its face for lack of specificity of the property in the contract. Also, issues like an inspection period, who is paying for costs like title insurance and date of closing are all vital to a good real estate contract. Again, I have a very bad feeling we will never get to the point of the validity of the contract, because you may not be able to identify who took your $7,000.

The owner of the property can be determined by visiting www.leepa.org and entering the address of the property. If the owner lives somewhere other than that property, that is another bad sign. They should be contacted immediately (by phone if you can find it, or express mail if not) to determine whether they have any involvement in the sale, and, if not, if they can identify who received the funds.

I do hope this is all just someone trying to sell on their own who wrote a deficient contract and will return from vacation soon. The situation needs to be reviewed carefully to determine what your options are, including a call to the Cape Coral Police Department to report the potential fraud.

Eric P. Feichthaler has lived in Cape Coral for over 30 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Historical Museum, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 18 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator.

Mr. Feichthaler can be reached at eric@capecoralattorney.com, or (239) 542-4733.

This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.