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I am writing this to you today because my next course of action is to go to the BRE with this letter and to continue the pressure on Keller Williams Danville (CTO Realty), I don't think they truly grasp the mistake they made. I am currently enrolled in a Keller Williams class to get my Agent's license, While going through this class I realized just what mistakes this Agent made and how her Broker of Record did nothing to help her or me their client with this matter that arose from my agent's actions. It discouraged me in my pursuit of my license and working for Keller Williams if they are not willing to back their clients and or their agents. I am trying to go about this nicely without bringing it to BRE, Social Media and business Review websites. I am hoping that you can contact them and let them know that my next course of action will not be good for Keller Williams This is the letter I have prepared for the BRE:
Arlo Armstrong
14850 Highway 4 Ste. A #117
Discovery Bay CA 94505
[protected]
10/30/17
Re: Reimbursement for costs due to error and process due due diligence
I was in a listing agreement with Angela Muetterties, We had a previous buyer who had an inspection done on the home and in this report it listed that a contractor or specialist needed to look at the foundation. That buyer backed out due to costs of mortgage insurance and the costs of the remaining costs to fix an older home. We disclosed this report in our new disclosures. Angela and I decided to have her foundation specialist come out and meet with us, I couldn't meet at the time she had set aside for the meeting but she said that she would handle this meeting and let me know what was said. She met with a foundation specialist that she knew, my understanding was that he didn't write a report because there was nothing to report that the foundation had natural settlement and if we needed Further information we could pay for a report and that the potential buyers could contact him with any concerns about the foundation. I asked Angela if this was enough for the disclosures, Angela insured me that there was no need for a written report and that she would note her conversation in the disclosures with the contact info of the specialist, as per her professional advice this is what was done. April 24th after the close of escrow we got an email that there was a crack in the foundation that was discovered by the new homeowner and they wanted to know what we were going to do to handle this? I asked what to do and Angela contacted "Her legal advice" who looked over the info and determined that we disclosed all the information properly and that it was the buyers mistake because they didn't get there own professional inspections on the home before they purchased it. Angela had suggested they didn't have a leg to stand on so we should wait it out. The buyers had a company come out and give them an assessment of the crack in the foundation which put the amount to fix at $38, 000+ to repair. We then got a demand for mediation. Angela sent me the demand for mediation and after reading the process I was very uncomfortable with this, I didn't understand why I was getting this when I did nothing wrong. Angela, Keller Williams (CTO) and her legal team had no answers or suggestions for me except to go into mediation and if we didn't like the outcome we go to Arbitration. I didn't feel comfortable with this because If we did everything correct why were we going to mediation? so I hired a lawyer Marcus T. Brown to help decide in fact we did everything correct, the lawyer found a critical error in the disclosure process that Angela had made. My lawyer had put Angela Muetteries and CTO Realty on notice to show at the mediation, they decided it was too short of notice and decided not to show. Angela told me that if I couldn't come to an agreement that they would definitely be there at Arbitration. I figured this was standard practice. I went to mediation and because I didn't have any representation from CTO Realty or Angela Muetterties there were many questions that I couldn't answer about the meeting with the foundation expert and how the discussions with the buyer's agent unfolded. My lawyer and I talked the buyers down from a $41, 075.00 claim to a settlement of $8, 000 so that they could repair the foundation and said other costs. My legal fees were at the time at $250 and $5, 938.95, I asked what Arbitration was going to cost because I didn't agree with what the buyers were asking for, Both my lawyers and the mediators came up with cost estimates for Arbitration ranging from $39, 000+, depending on the outcome, I couldn't afford to take this risk and decided to settle for the $8, 000. Neither Angela Muetterties or CTO Realty told me how much Arbitration would cost and with this new information I chose to settle and cut my losses at this amount because the alternative was a lot more. My lawyer asked them to help with this amount and they denied any responsibility. I then emailed a plea with a deadline and I got a response on October 11th, of: "Arlo, I forwarded your letter and you will receive a response." On November 2nd I emailed Angela and got a response that they will respond by next week.
On October 20th she emailed me to ask if I was still represented at this time and I answered back that I was not and that I closed with my lawyer for the time being and that it was ok for her lawyer to contact me. This was the last correspondence with Angela and I haven't received any more news, I am to pay this $8, 000 to the buyers by Nov. 30th 2017 and I need to pay my legal fees so I am trying to get compensation for this ASAP. After some research I believe there were a few things that should have been done to avoid this problem and that there are actual rules/laws that needed to be followed as written by my lawyer:
When you give out a reference for a professional you give out more than one and then let the client choose who they want to use.
Never recommend that someone's word is enough for disclosures
When your client is brought into mediation, you either go or request a rescheduling if more time is needed
When representing a client you need to represent to the end.
Please Respond to this ASAP so I can decide to continue my process
Thank you,
Arlo L. Armstrong III
Here is a Copy of the letter from my lawyer:
MTB
[protected]@marcusbrownlaw.com
September 22, 2017
By U.S. Mail and email: [protected]@bowlesverna.com
K.P. Dean Harper, Esq.
Bowles & Verna LLP
California Plaza
2121 N. California Blvd., Suite 875
Walnut Creek, CA 94596
RE: Liang adv. Armstrong; Property address: 3442 Middleton Avenue, Castro
Valley, CA 94546; Our file no. [protected]
Dear Mr. Harper,
Please recall that this office represents the seller, Arlo Armstrong. Mr. Armstrong was forced to mediate and settle claims brought due to Ms. Muetterties' professional negligence and breach of her fiduciary duty owed to Mr. Armstrong. Our client has mitigated his damages in this matter, and now expects to receive compensation from your client by October 6, 2017. Ms. Muetterties' actions and decisions surrounding the disclosure process involved professional negligence and a breach of her fiduciary duty to Mr. Armstrong. While engaged in an agency relationship with Mr. Armstrong, Ms. Muetterties independently chose to hire a contractor to inspect the property. Following the inspection, she then elected not to obtain a written report, but instead spoke informally with the contractor, and wrote herself an email stating that the contractor "didn't see anything that needs to be done to foundation." (See Muetterties email, Exhibit A). Ms. Muetterties then took it upon herself to include this self-authored email in Mr.
Armstrong's disclosures to the buyer. By including the note with Mr. Armstrong's disclosures, Ms. Muetterties was making clear, affirmative representations to the buyer that a contractor, who "has 18 years experience, " "didn't see anything that needs to be done to [the] foundation." Instead of considering just the information Mr. Armstrong had provided regarding his knowledge of the property, and the findings of foundation issues in the existing home inspection report, the buyer relied on Ms. Muetterties' note and elected not to conduct an independent inspection of the foundation. After discovering a large crack in the foundation after the close of escrow, the buyer asserted this claim against Mr. Armstrong.
Realtors owe fiduciary duties to their principal in the transaction. (Wyatt v. Union Mortgage Co. (1979) 24 Cal.3d 773.) In this regard, realtors owe the "highest degree of loyalty and good faith." (Burch v. Argus Properties, Inc. (1979) 92 Cal.App.3d 128, 131.) By including
K.P. Dean Harper, Esq.
September 22, 2017
Page 2 her email in the disclosures to the buyer, and making affirmative representations on Mr. Armstrong's behalf regarding the foundation without sufficient basis or her client's informed consent, Ms. Muetterties breached her fiduciary duty owed to Mr. Armstrong. Instead, she displayed disloyal conduct, and opened Mr. Armstrong up to liability. Furthermore, a realtor is under a duty to use reasonable care and, as a professional, must use a higher degree of skill and diligence in the conduct of his or her duties. (Wyatt, supra, 24 Cal. 3d 773, 782; Brady v. Carman [protected] Cal.App.2d 63, 68.) Ms. Muetterties also breached her duty to exercise reasonable care in representing Mr. Armstrong in the transaction of his property. A reasonably prudent agent would know to disclose only information of which she and her principal were certain, and would refrain from making affirmative representations regarding information about which they did not know and which contradicted the written findings of a home inspection. As a result of your clients' negligence, Mr. Armstrong has incurred damages. Mr. Armstrong was forced to hire counsel to defend the claims, incurring $5, 938.95 in attorney's fees and expenses, and $250.00 for the mediation fee. In addition, Mr. Armstrong was forced to incur liability to settle the matter. The buyer's statement of damages was for $41, 075.00. Mr. Armstrong was forced to settle for $8, 000, when the opportunity presented itself at mediation. The $8, 000 settlement is exceedingly reasonable given the buyer's claims, plus the risk of fees and costs associated with going to arbitration.
Please remit payment to this office in the amount of $14, 188.95 no later than October 6,
2017, payable to Arlo Lowell Armstrong III. Otherwise, Mr. Armstrong will be forced to seek the extent of legal remedies available under the law against your clients. Thank you for your time and attention to this matter.
Very Truly Yours,
Sophia V. Cohn
SVC/ses
Enclosure
EXHIBIT A
From: Angela Muetterties [protected]@hotmail.com
Subject: 3442 Middleton, Castro Valley
Date: March 3, 2017 at 12:26 PM
To: Angela Muetterties [protected]@hotmail.com
Follow up on foundation inspection today by Ned Clyde Construction.Paul Brown did the inspection. He has 18 years experience. He didn't see anything that needs to be done to foundation. There was nothing to write up. If you wish to talk to him, he can be reached at (925) 689-5411or [protected]@nedclydeconstrucion.com
ANGELA
Read and Received:
Buyer: ___________________
Date: ____________
ANGELA&MUETTERTIES
PRESIDENT&POINTS&OF&LIFE&1&Contra&Costa&Chapter
PAST&PRESIDENT&Women's&Council&of&Realtors&
REALTOR&LEADERSHIP&AWARD&&SFR&1&e1PRO
SRES&1&MASTER&CERTIFIED&NEGOTIATION&EXPERT&MCNE
R.E.&COLLABORATIVE&SPECIALIST/&DIVORCE&&RCS1D
CERTIFIED&LUXURY&HOME&MARKETING&SPECIALIST
Keller Williams Realty
760 Camino Ramon #200
Danville, Ca. 94526
www.AngelaAsap.com
[protected] cell
[protected] office
License #[protected]
