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Consumer Complaints

BBB Accredited Business since 07/09/2009

Scheerer McCulloch Auctioneers, Inc

Phone: (260) 356-4111

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Customer Complaints Summary

1 complaint closed with BBB in last 3 years | 0 closed in last 12 months
Complaint TypeTotal Closed Complaints
Advertising / Sales Issues1
Billing / Collection Issues0
Problems with Product / Service0
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints1

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (1)
12/13/2013Advertising / Sales Issues | Read Complaint Details
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Complaint
Negligence of not doing their due diligence prior resulted in unnecessary charges.
Auction included personal property and house of deceased father; however the title search was done way too late, only hours before the auction. It revealed liens on the house of ******* and the only bid on the house was for ******** So the house went unsold. If we had known of the liens, the house would have and should have been removed from the auction way before any charges were made to sell the house. We feel all of the charges associated with selling the house should be removed from the bill and only the personal property should be counted. We don't feel we should pay for their mistake or negligence to do a title search before they knew if the house was even capable of being sold.

Desired Settlement
A refund of all the charges that was associated with the sale of the house which we estimate to be $*******.

Business Response
Contact Name and Title: ******* S. *********
Contact Phone: XXX-XXX-XXXX
Contact Email: **********@gmail.com
Ms. **********
Thank you for bringing this complaint to may attention.
In a standard agreement for sale of real estate, the seller is ultimately responsible for disclosing and removing and liens or encumbrances against subject property.
Our agreement for sale of real estate which is signed by the consumer specifically states the following:
"Sellers mortgages , liens, and encumbrances- all sales of real estate and personal property shall be made by Seller free and clear of all encumbrances. Sellers current encumbrances are the following:
1.
2.
3.
(Note, the consumer failed to disclose any Mortgages, encumbrances or liens against the property)

"Seller represents and warrants that the foregoing are the only mortgages, liens and encumbrances against the property which will be satisfied and released on or before closing (real estate) or auction (personal property)."
(Note, the consumer did not attempt or complete this agreement portion of the contract).

Also the consumer indicated to me that this property was owned by her father's estate and she signed the agreement and the seller's representative. The consumer did not disclose to me that the real estate was not owned by her father's estate, and that is was actually owned by 3 heirs. In fact she states this again in the complaint that the auction included the home of her deceased father.
The consumer agreed to pay our company ********* for marketing the sale of the property. The ********* marketing expense was not contingent on any title discovery or title commitment deadline, and was spent 45 days prior to the auction to give bidders time to view the property and arrange to bid and pay for the property.
The failure of the consumer to disclose the true owner of the property and disclose and remedy any liens resulted in a net loss to my company of ********* in unpaid expenses and several hundred dollars in losses to the title compnay. The title company and I both thought it would not be wise to pursue the damages caused by the consumer, due to the fact that there are so many other creditors pursuing the owners for judgments against them. The cost of legal fees would end up costing us more money than what we could receive in a legal judgment (which appears to ultimately be uncollectable based on the heirs past history).
My response is that the consumer owes our company ********* and I am not interested in paying her any additional loss due to her not performing her agreed upon responsibilities in our contract agreement.
Sincerely,
******* ** *********
President,
Scheerer McCulloch Auctioneers, Inc.


OFFER:
None.

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