Case Dismissed 54-02-13 03 Pitfalls of Buying a Home

Summary

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Podcast Summary

Podcast: Harold's Old Time Radio

Episode: Case Dismissed – "Pitfalls of Buying a Home" (Original Airdate: 1954-02-13)
Release Date: August 16, 2025
Host: Harold's Old Time Radio

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Overview

This episode of "Case Dismissed," a classic dramatized legal series, dives into the common legal and financial pitfalls encountered when buying a home. A young couple, the Thomases, find themselves trapped by an ill-advised real estate transaction, losing earnest money and becoming entangled in a binding contract for a house neither suits their needs nor matches its purported value. Through engaging dramatization and legal commentary, the episode provides timeless cautionary advice for prospective homebuyers.

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Key Discussion Points & Insights

1. The Catalyst: Forced Move and Desperate Home Search

• Situation: The Thomases are notified by their landlord to vacate their apartment, leaving them in urgent need of new housing.
  • Bob Thomas: "Compared to us, Job was a light-hearted playboy. 2000 bucks stolen right out of our innocent little hands." (00:35)
• Insight: Stress and urgency can lead buyers to skip important precautions.

2. Impulse and Persuasion in the Real Estate Market

• Exploring Options: Virginia and Bob tour a seemingly idyllic suburban home, highlighting both their aspirations and naivety as buyers.
  • Virginia Thomas: "Oh, Mike and Linda ought to have the chance to grow up in the country, Bob. Out in the nice clean air... Let's make the big jump." (04:52)
• Realtor Tactics: Mr. Wardman, the realtor, employs high-pressure sales tactics and leverages the buyers' fear of losing the home to another party.
  • Mr. Wardman: "Three other couples saw it and were very enthusiastic... I expect another party to go through it for a second look tonight." (12:47)

3. The 'Simple Memo': Legal Dangers of Informal Agreements

• Signing Trouble: Wardman assures the couple the "memo" is non-binding and simple, omitting the need for immediate legal review.
  • Wardman: "It will take no lawyer to understand this simple standard form that I have here. You can decide about a lawyer for the later papers if you wish." (14:03)
• Consequences: The memo is, in fact, a legally binding contract—even in the absence of a more detailed, formal agreement.

4. Failure of Due Diligence: Overvaluation and Hidden Defects

• Financing Shock: Their bank only appraises the home at $13,500, far below the $16,500 price, limiting the mortgage to $9,000.
  • Mr. Morgan (Bank Rep): "The very best mortgage the [bank] can extend to you is $9,000, not a cent more." (15:42)
• Hidden Defects: A follow-up inspection reveals poor construction, a faulty furnace, settling foundations, and a soon-to-be-blocked scenic view.
  • Mr. Morgan (Bank Rep): "That hollow sound... means the ground underneath is settled away, leaving it unsupported... the fire brick lining [of the furnace] is worse... the chimney is settling..." (17:16–18:02)
  • Bob Thomas: "Hey, I've had enough. I know why you put a $13,500 valuation on this property." (18:41)

5. Realtor Deflection and Buyer Assumptions

• Wardman Refuses Refund: The agent insists earnest money is forfeited and a contract is binding, denying misrepresentation claims.
  • Wardman: "I've already taken my commission from the earnest money... that became due... when I successfully found a buyer..." (16:21)
  • Wardman: "I'm afraid you assumed yourself into this problem." (19:52)
• Buyer Error: The Thomases assumed financing and land inclusions without contract stipulation.

6. Legal Counsel and Salvaging the Situation

• Post-facto Legal Advice: Attorney Randolph Ross explains the binding nature of any signed document—memo, offer, or otherwise—and stresses the necessity of legal review and proper contract terms.
  • Randolph Ross: "Memo, bid, offer to buy... can look as simple as an IOU. But when you sign to buy a house, that paper may become a binding contract..." (21:13)
  • Randolph Ross: "Proper provision should be made in the contract for return of your earnest money in the event you're unable to obtain the loan..." (20:55)
• Negotiation & Resolution: With legal pressure mounted, Wardman agrees to release the couple from the contract and return their money as a gesture of ethics and to avoid court.

7. Takeaway and Caution for Buyers

• Bob Thomas: "I'm making no more real estate decision of any kind without counsel." (25:10)
• Randolph Ross: "You mean you've decided lawyers aren't just for landlords and big shots? Mr. Thomas?" (25:17)
• Bob Thomas: "Completely convinced, Mr. Ross." (25:22)

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Notable Quotes & Memorable Moments

• On Panic and Regret

  • Bob Thomas: "You mean to say just because my wife and I signed a simple little memo, we've lost two thousand dollars and we're stuck with a sixteen thousand five hundred dollar home we don't even want?" (00:35)

• On Legal Dangers of Simple Documents

  • Randolph Ross (Lawyer): "Memo, bid, offer to buy... can look as simple as an IOU. But when you sign to buy a house, that paper may become a binding contract establishing many of your important rights and obligations." (21:13)

• On Buyer Assumptions

  • Mr. Wardman (Realtor): "I'm afraid you assumed yourself into this problem, Mr. Thomas. Please don't blame me." (19:52)

• On the Value of Legal Counsel

  • Bob Thomas: "Completely convinced, Mr. Ross." (25:22)

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Timestamps for Key Segments

• 00:35 – The Thomases discover their predicament and $2,000 loss.
• 04:09–08:12 – The Thomases tour the dream house with Wardman.
• 12:47 – Wardman introduces sales pressure about competing buyers.
• 14:03 – Pressured into signing the "simple memo."
• 15:42 – The mortgage is denied due to low appraisal.
• 17:16–18:58 – Bank inspection reveals major property defects.
• 20:55–21:47 – Lawyer explains what terms should be in a real estate offer or contract.
• 22:53–24:47 – Legal intervention, negotiation, and satisfactory resolution.

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Final Counsel & Summary

Legal commentary by Dean John C. Fitzgerald closes the episode, reiterating:

• The home-buying process is legally complex and full of hidden risks—even with a simple "memo."
• Always seek legal advice before signing any document when purchasing property.
• Ensure any agreement includes all essential terms: financing clauses, property description, what is included in the sale, possession date, and contingencies.

Recommended: Chicago Bar Association pamphlet "So You’re Going to Buy a Home" (details provided for requesting a free copy).

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Tone Reflected

The episode maintains a conversational yet didactic tone, mixing the humor and colloquial frustrations of the Thomases with firmness and professional clarity from the lawyer and realtor. The dramatization underscores the real-life emotional stakes and common missteps faced by unsuspecting buyers.

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This dramatization endures as potent commentary on legal oversight, the perils of assumption, and the invaluable protection legal counsel provides when making life’s biggest purchases.

Transcript

[Lowe's Announcer]

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[Narrator]

Case dismissed.

[Bob Thomas]

You mean to say just because my wife and I signed a simple little memo, we've lost two thousand dollars and we're stuck with a sixteen thousand five hundred dollar home we don't even want?

[Narrator]

A young man and his wife have failed to use caution in the most important financial venture of a lifetime. It's too late to have their case dismissed. WMAQ, in cooperation with the Chicago Bar association, presents Case Dismissed. This is the story of your legal rights. How vital to preserve and protect them. How easily they may be lost. Our story begins in a law office belatedly.

[Virginia Thomas]

Oh, for goodness sake, Bob, stop pacing back and forth. Anybody think it was your offer?

[Bob Thomas]

Well, it isn't. And I don't know why I'm here in the first place. I always swore I wouldn't be caught dead in a lawyer's office.

[Virginia Thomas]

Now stop it, Bob. We're here because we're in trouble.

[Bob Thomas]

And the only way you're telling me we're in Trouble. Compared to us, Job was a light hearted playboy. 2000 bucks stolen right out of our innocent little hands with our Bob.

[Virginia Thomas]

We just have to get it back or.

[Bob Thomas]

Well, who was it wanted that house.

[Narrator/Announcer]

So bad we couldn't wait?

[Virginia Thomas]

Robert, who was it wouldn't think of paying a lawyer?

[Bob Thomas]

Well, if we'd never gone out looking.

[Virginia Thomas]

For a house, we didn't have any choice and univers. Come on now, just sit down. The lawyer's coming back. Let's be quiet now, okay?

[Bob Thomas]

Okay. Hello.

[Randolph Ross (Lawyer)]

I'm Randolph Ross. You must be Mr. And Mrs. Thomas.

[Bob Thomas]

Glad to know you, Mr. Ross. I'm Bob Thomas and this is my wife Virginia. How do you do?

[Virginia Thomas]

Hello, Mr. Ross.

[Randolph Ross (Lawyer)]

Sit down, won't you, Mrs. Thomas?

[Bob Thomas]

Huh? Oh, oh, yeah. Yes.

[Randolph Ross (Lawyer)]

From your phone conversation, I gather you're.

[Bob Thomas]

Involved in real estate difficulties.

[Virginia Thomas]

Oh, yes.

[Bob Thomas]

That's good.

[Randolph Ross (Lawyer)]

Perhaps you'd better tell me how it all started, Mr. Thomas.

[Bob Thomas]

All right. Actually, it began a week ago Saturday when our landlord served notice on us that we'd have to vacate our apartment on the near north side. I'm a commercial artist. Jenny And I have two children. Mike is 10 and Linda's 7.

[Virginia Thomas]

And you know how difficult it is finding apartments with two youngsters, Mr. Ross.

[Randolph Ross (Lawyer)]

Yes, I understand it's still very difficult. Now, what was your landlord's reason?

[Virginia Thomas]

Son and family want our apartment.

[Bob Thomas]

Yeah. Phony story if I ever heard one. We'd wanted to fight this. I bet we could have.

[Randolph Ross (Lawyer)]

On what grounds, Mr. Thomas?

[Bob Thomas]

Well, one of the boys at the office told me the son has to be a returning veteran or he can't throw us out.

[Randolph Ross (Lawyer)]

For your sake, Mr. Thomas, I'm glad you didn't follow that advice.

[Bob Thomas]

Why not?

[Randolph Ross (Lawyer)]

For quite a while now, a landlord in this city may legally ask tenants to vacate for any reason. Of course, that's where there's no lease. The government service in itself has never been a factor.

[Bob Thomas]

You see? Just like I said, Jenny, lawyers.

[Virginia Thomas]

Now, Bob, just calm down. Mr. Ross should know.

[Randolph Ross (Lawyer)]

I'd be interested to know what you meant by that, Mr. Thomas.

[Bob Thomas]

Oh, well, nothing. Only it always seems to me you lawyers are always on the side of the landlords and the big shots and like that.

[Randolph Ross (Lawyer)]

Mr. Thomas, you are wrong, of course. But I wouldn't think of imposing my prejudices on you. You didn't have to come to me, you know. And I suggest that feeling as you do, it might be wise.

[Virginia Thomas]

Oh, no, Mr. Ross. Bob's just upset. He didn't mean that. Did you, Bob?

[Bob Thomas]

Well, no. No, I didn't. Really, Mr. Ross, I. I'm sorry. I just can't get over this dirty deal they put over on us.

[Randolph Ross (Lawyer)]

Well, perhaps if you'd submerge your emotions for a few moments, we could get to the crux of your situation and discover just how much they've put over on you, as you put it.

[Bob Thomas]

Okay. Well, knowing our time was limited in this apartment, we went over the Sunday classified ads with a fine tooth comb. I looked at the apartments for rent.

[Virginia Thomas]

And I went through the suburban homes for sale.

[Bob Thomas]

Yeah, this one sounds good, Jenny. Modern. Five room near Lake. Ten minutes from Loop. Four blocks to schools and parks. $185 a month. Children okay.

[Virginia Thomas]

Children okay. How nice life can go on because children are okay.

[Bob Thomas]

Well, you know what they mean.

[Virginia Thomas]

Unfortunately, I do. Four blocks to school parks and all the pavement to play on their little hearts could ever desire.

[Bob Thomas]

You're being bitter, Ginny.

[Virginia Thomas]

Oh, Mike and Linda ought to have the chance to grow up in the country, Bob. Out in the nice clean air and now that we're really forced to move, let's make the big jump.

[Bob Thomas]

Well, I don't know, honey.

[Virginia Thomas]

Oh, come on now, what have we got to lose?

[Bob Thomas]

Answer. Exactly $4,500 cash. Can look at our savings book? No.

[Virginia Thomas]

Let's look at this, bob. Glenwood, height 35 minutes from the loop. Lovely. Seven room, three bedroom, colonial residence, attached garage, large porch, kitchen, dining room, large living room. And listen to this, dear. Extra room upstairs with skylights suitable for studio.

[Bob Thomas]

Hey, how about that?

[Virginia Thomas]

Near fine public school, churches, fast railroad transportation, very large yards. Beautiful. Oh, Bob, isn't this a wonderful setting?

[Bob Thomas]

Uhhuh.

[Virginia Thomas]

Oh, come on now, admit it. Just look at that line of stately pine trees. Oh, and that long unobstructed view across the meadow there.

[Bob Thomas]

For some reason, I've learned to love the line of stately old elevated girders. And the short unobstructed walk to the office.

[Virginia Thomas]

Goofy. Come on, let's walk around the house. Mr. Wardman said the Odom was in Florida, so nobody will mind.

[Bob Thomas]

Okay, but I mind. And not being in Florida.

[Virginia Thomas]

I mean, they've had more snow out here.

[Bob Thomas]

Oh, nothing a 10 ton snowplow won't clear away.

[Virginia Thomas]

Very funny. Can't you say something optimistic?

[Bob Thomas]

I admit this place looks pretty nice, honey. And this is the worst season to look at it too.

[Virginia Thomas]

Oh, it is wonderful, isn't it, dear? Oh, and just look at this wide backyard.

[Bob Thomas]

Seems to go on way past the garage.

[Virginia Thomas]

And look at all that playground equipment set up over there.

[Bob Thomas]

Pretty permanent looking too. Like a regular kid's playground.

[Virginia Thomas]

Golly, won't Mike and Linda love it?

[Bob Thomas]

Assuming we buy it. Well, okay, so I'm weakening.

[Virginia Thomas]

Bob, do you see what I see?

[Bob Thomas]

Where?

[Virginia Thomas]

Right over there.

[Bob Thomas]

A greenhouse? Yeah. Yeah, I guess it is a small greenhouse.

[Virginia Thomas]

I never dreamed we'd run into anything like. Oh, Bob, just imagine being able to grow flowers all through the winter.

[Bob Thomas]

Myself, I'm no Luther Burbank, but I know what flowers mean to you, honey. And incidentally, I'm not at all unhappy about this view back here. It's natural for painting landscapes.

[Virginia Thomas]

Oh, it's. It is. It's just perfectly marvelous here. Hey, Bob, there are all sorts of wonderful garden tools in this little tool shed. How much do you think this would cost, dear?

[Bob Thomas]

I don't know. I sure wish that fellow Wardman would show up and tell us what I know about buying a house. Well, just don't let Mr. Wardman know.

[Virginia Thomas]

Oh, I don't know, dear. After all, a real estate man represents the buyer as well as the seller, doesn't he?

[Bob Thomas]

I suppose so. Anyway, I wish he'd get here so we can look inside and get the price. Say, wait a minute. You're supposed to be the eager Beaver. Well, Mr. Wardman, we'd certainly like to have the bad news about the price of this house.

[Mr. Wardman (Realtor)]

Now, Mr. And Mrs. Thomas, don't deny me the pleasure of holding out my big surprise until the very last. Let me show you through the rooms first.

[Virginia Thomas]

Well, all right, Mr. Wardman.

[Bob Thomas]

But that big surprise better not be too big, Mr. Wardman, if you know what I mean.

[Virginia Thomas]

Oh, honey, these bedrooms for the children are simply wonderful.

[Bob Thomas]

The master bedroom is pretty great, too.

[Virginia Thomas]

Oh, especially compared to the tiny little.

[Narrator/Announcer]

Bedroom we have now here.

[Bob Thomas]

A man could actually enjoy sleeping late on Saturday mornings. Yes, sir.

[Mr. Wardman (Realtor)]

And may I say, you'll equally enjoy big crackling fires down here on Saturday nights.

[Virginia Thomas]

Oh, Bob, what a lovely living room.

[Bob Thomas]

Nice looking fireplace, all right. It seems to be a crack down there in the floor near the base of it. Oh, yeah.

[Mr. Wardman (Realtor)]

Well, that's nothing. Of course, Mr. Thomas, we'll be happy to putty it up for you.

[Bob Thomas]

No, leave it alone. Really. It kind of adds to the charm of the fireplace.

[Virginia Thomas]

You're being silly.

[Bob Thomas]

I mean it. It kind of gives the house that lived in.

[Mr. Wardman (Realtor)]

That's a fine coal furnace converted to an equally fine oil burning unit, Mr. Thomas. Extremely efficient heating, I might add. Quite inexpensive.

[Bob Thomas]

Good. I'm a great guy for saving money.

[Mr. Wardman (Realtor)]

Well, I somehow sensed you were, Mr. Thomas. And that's why the price here will delight you.

[Virginia Thomas]

And you won't tell us till later, Mr. Ward?

[Mr. Wardman (Realtor)]

No, Mrs. Thomas, I won't. But I will tell you this much so you can be prepared for the pleasant surprise. Your nearest neighbor's home is in the $30,000 bracket.

[Bob Thomas]

Shall we leave quietly, dear?

[Mr. Wardman (Realtor)]

Now, please don't jump to conclusions, Mr. Thomas. By the way, wouldn't this basement make an excellent recreation room?

[Bob Thomas]

I think we'll use all of it for a laundry, Mr. Wardman. If the house costs what I suspect my wife will be taking in washing.

[Mr. Wardman (Realtor)]

Well, here we are, folks. End of the tour. Right in the spacious living room. I hope that you'll be going to call your own before long.

[Virginia Thomas]

Well, you certainly time your tours very effectively, Mr. Wardman. Just look out through that picture window, Bob.

[Bob Thomas]

Brother, what a sunset.

[Mr. Wardman (Realtor)]

Just one of those little extras I always throw in, Mrs. Thomas. Seriously, folks, I know I don't have to sell you with the sunsets and the peace and quiet and the gracious country living. Somehow I detect that you already Know how to appreciate them.

[Virginia Thomas]

Yes. We both grew up in the country, Mr. Wardman, in Wisconsin.

[Bob Thomas]

Still have a little farm up there, as a matter of fact. Oh, really?

[Randolph Ross (Lawyer)]

Wisconsin?

[Mr. Wardman (Realtor)]

That's interesting.

[Bob Thomas]

Shall we drive back to my office.

[Mr. Wardman (Realtor)]

Now and discuss how soon you will.

[Bob Thomas]

Start really living here in Illinois?

[Mr. Wardman (Realtor)]

Now then, folks, what do you honestly think that fine house will cost you?

[Bob Thomas]

I don't know. All I can figure is that it's beyond our price.

[Narrator/Announcer]

What would you guess?

[Virginia Thomas]

Honey, I don't have any idea, really. But you said the nearest house was in the $30,000 bracket. Mr. Wardman, it didn't look much better when we passed it. Would you think about. About 25,000?

[Bob Thomas]

Gee, well, yes, I imagine about that. Maybe even a little more. I suspect you folks know more about.

[Mr. Wardman (Realtor)]

Current home prices than you let on.

[Bob Thomas]

Really? 25,000? I'm sorry, Mr. Wadman. That lets us out of the picture.

[Virginia Thomas]

Oh, yes. We couldn't possibly finance anything like that.

[Bob Thomas]

Now, hold on, folks.

[Mr. Wardman (Realtor)]

Wait a minute.

[Bob Thomas]

Wait a minute.

[Mr. Wardman (Realtor)]

We were talking about the value, not the asking price. I said you were right and you were. But it just so happens that we have some extenuating circumstances involved in this sale. In fact, I don't think you can afford not to buy it at $16,500. 16.

[Narrator/Announcer]

5.

[Virginia Thomas]

Oh, now, Mr. Warren.

[Mr. Wardman (Realtor)]

I know it's unbelievable, friends, but there's a good reason for this ridiculous price. The seller, as I told you, is in Florida. Now, he's in great need of immediate cash for one of his promotions down there. Now, if this were spring, he could.

[Bob Thomas]

Get the full value of this fine home.

[Mr. Wardman (Realtor)]

But, well, unfortunately, houses move slowly this time of the year, and he can't wait his loss. Mr. And Mrs. Thomas, is your gain, a tremendous gain.

[Bob Thomas]

That's pretty plain.

[Virginia Thomas]

It seems too bad.

[Bob Thomas]

Yes.

[Mr. Wardman (Realtor)]

Well, that's business for you, Mr. Thomas.

[Bob Thomas]

Well, what do you think, honey?

[Virginia Thomas]

I haven't a doubt about it.

[Bob Thomas]

Naturally, folks, of course.

[Virginia Thomas]

Now, there's no point in making up our minds tonight. And it's always wise to sleep on any big decision like this.

[Mr. Wardman (Realtor)]

Excuse me, Mrs. Thomas, but I'm afraid. Well, please forget it. I certainly don't want to appear to be using undue influence on any of my clients.

[Virginia Thomas]

You mean we have competition?

[Mr. Wardman (Realtor)]

All right, I'll be very frank with you because, well, I like you two young people. Three other couples saw it and were very enthusiastic about it before you called. And I expect another party to go through it for a second look tonight.

[Bob Thomas]

Boy, this could be quite a dog fight.

[Mr. Wardman (Realtor)]

Well, it wouldn't be Fair to use this as pressure on you, Mr. Thomas.

[Bob Thomas]

Not fair at all.

[Mr. Wardman (Realtor)]

That's not the way I operate, as a matter of fact. Well, nothing at all may happen tonight.

[Virginia Thomas]

But a house valued at 25,000 going for 60, 15,500. Bob, we're both convinced about that house, aren't we?

[Bob Thomas]

Sure. We looked it over pretty carefully and it fits our needs to a T. What do you think?

[Virginia Thomas]

Why don't we call a lawyer and go ahead and sign it tonight, dear?

[Bob Thomas]

I'm for it, honey, only. Well, why the lawyer?

[Virginia Thomas]

Well, I've read somewhere that you shouldn't try to buy or build a house without having the aid of a lawyer.

[Bob Thomas]

I'd just like to save as many legal fees as possible. Hunting this house will cost enough anyway. We'll have to cut some corners.

[Virginia Thomas]

But you don't understand all that gobbledygook language in real estate contracts and so forth, do you?

[Bob Thomas]

No, but that all comes later on, doesn't it, Mr.

[Mr. Wardman (Realtor)]

Certainly. All you have to sign tonight is a memo. Just a little binder to protect you against others who might decide to buy it.

[Bob Thomas]

Any gobbledygook words in that?

[Mr. Wardman (Realtor)]

No, sir.

[Narrator]

None at all, I assure you.

[Mr. Wardman (Realtor)]

Mrs. Thomas.

[Bob Thomas]

Yes?

[Mr. Wardman (Realtor)]

It will take no lawyer to understand this simple standard form that I have here. You see, you can decide about a lawyer for the later papers if you wish. However it may ease your minds, know that I have sold many.

[Insurance Announcer]

I'm here on the job site with Dale, who's a framing contractor.

[Mr. Wardman (Realtor)]

Hey, good morning.

[Insurance Announcer]

Dale traded up to Geico Commercial Auto Insurance for all his business vehicles. We're here where he needs us most.

[Mr. Wardman (Realtor)]

Yep, they sure are.

[Insurance Announcer]

We make it easy for him to save on all his insurance needs, all in one place with coverage that fits his business and bottom line. Oh, I shouldn't have looked down.

[Mr. Wardman (Realtor)]

It's all right.

[Insurance Announcer]

We're so far up here.

[Mr. Wardman (Realtor)]

Look at me. Take a deep breath.

[Insurance Announcer]

I'm good.

[Bob Thomas]

So good.

[Lowe's Announcer]

Get a commercial auto insurance quote [e-mail].

[Narrator]

And see how much you could save.

[Bob Thomas]

Get more with GEICO dollars worth of.

[Mr. Wardman (Realtor)]

Real estate in my time, and I've never once had a kickback of any sort.

[Bob Thomas]

Well, I'm ready to sign.

[Virginia Thomas]

I guess I am, too, Mr. Ward.

[Mr. Wardman (Realtor)]

Good. Now, there is just one term that may be slightly strange to you at that. I mean the earnest money.

[Bob Thomas]

Oh, I'm not quite that out of touch, Mr. Wardman. That's the money we deposit with you, indicating our willingness to go ahead with the transaction.

[Randolph Ross (Lawyer)]

That's right.

[Virginia Thomas]

Clever boy. Maybe we don't need a lawyer after all.

[Mr. Wardman (Realtor)]

You can go about arranging the mortgage with your bank as well as making your full down payment later tonight. All we need is your earnest money.

[Bob Thomas]

I'll make a check, Mr. Wardman. What's the usual amount?

[Mr. Wardman (Realtor)]

Oh, 10 to 15% is all right, I'm sure. Why not write it out for go say $2,000.

[Virginia Thomas]

This is the Robert Thomas residence.

[Bob Thomas]

Mrs. Thomas speaking.

[Mr. Morgan (Bank Representative)]

Mrs. Thomas, this is Morgan at the bank.

[Virginia Thomas]

Oh, yes.

[Mr. Morgan (Bank Representative)]

About the requested $12,000 mortgage on your home.

[Virginia Thomas]

Yes, is everything all right, Mrs. Thomas?

[Mr. Morgan (Bank Representative)]

I've inspected the home and premises today and I have assessed the total valuation at $13,500.

[Virginia Thomas]

But there must be some mistake.

[Mr. Morgan (Bank Representative)]

I regret to inform you, Mrs. Thomas, the very best mortgage the mayor can extend to you is $9,000, not a cent more.

[Mr. Wardman (Realtor)]

Why, how dreadful. I can't understand the bank letting you down that way. What do you propose to do, Mr. Thomas?

[Bob Thomas]

Well, Mr. Wardman, I'm awfully sorry we caused you so much trouble and I hope you didn't lose any other prospects. But I'm afraid we'll just have to kind of cancel out and ask you to return our earnest money.

[Mr. Wardman (Realtor)]

But, my dear Mr. Thomas, that's quite impossible.

[Bob Thomas]

Impossible?

[Mr. Wardman (Realtor)]

Yes, indeed. You see, I've already taken my commission from the earnest money that became due to me when I successfully found a.

[Bob Thomas]

Buyer for the seller I represent. Now, wait a minute, Mr. Wardman. We never spelled out all the words of this deal and signed a contract.

[Mr. Wardman (Realtor)]

Young man, while it is perfectly true that we never reached the stage of spelling out all the words, the minute you signed that little memo to bind the bargain, you and your wife definitely signed a legal contract.

[Mr. Morgan (Bank Representative)]

River national bank, Mr. Morgan speaking.

[Bob Thomas]

Well, Mr. Morgan, this is Bob Thomas. I'd like to find out just why that house is worth so much less than we figured. Do you have time to show me the defects?

[Mr. Morgan (Bank Representative)]

I'll be happy to, Mr. Thomas.

[Bob Thomas]

Great. I'll meet you at the house in just an hour.

[Mr. Morgan (Bank Representative)]

A hollow sound in this basement floor indicates one of two possibilities. Either the slab is thin in spots, or what's worse, the ground underneath is settled away, leaving it unsupported.

[Bob Thomas]

Well, that can mean a whole new floor sometimes. Yes. Now.

[Mr. Wardman (Realtor)]

Alrighty.

[Mr. Morgan (Bank Representative)]

You didn't look inside the furnace at all?

[Bob Thomas]

No, as a matter of fact, Mr. Wardman said it was a fine coal furnace with a fine oil conversion unit. True?

[Mr. Morgan (Bank Representative)]

To an extent. But look inside the furnace with this flashlight.

[Bob Thomas]

Hey, these grates look like junk.

[Mr. Wardman (Realtor)]

The fire brick lining is worse.

[Mr. Morgan (Bank Representative)]

You have a new heating plant in Your future. Come upstairs now.

[Bob Thomas]

Well, here I can say I actually saw a defect, Mr. Morgan. This crack in the floor near the fireplace. But I imagine that's pretty trivial.

[Mr. Morgan (Bank Representative)]

It could be, but unfortunately it isn't. I checked closely and it seems the chimney is settling. In an old house, you can repair it once and for all. But in a fairly new house like this one, it can give you constant trouble. We'll go outside now and wind up the inspection. That hollow sound indicates the siding is nailed right to the studding without any sheathing.

[Bob Thomas]

Bad construction all through.

[Mr. Morgan (Bank Representative)]

Let's say cheap construction. That's closer to it. Here, take this knife and chip it. Some mortar in some of those masonry joints, Mr. Thomas.

[Bob Thomas]

Real powdery. Just crumbles away. Hey, I've had enough. I know why you put a $13,500 valuation on this property.

[Mr. Morgan (Bank Representative)]

Just one more item, Mr. Thomas. You mentioned the excellent view you have from this picture window.

[Bob Thomas]

Yeah, that sunset is about the only good point left.

[Mr. Morgan (Bank Representative)]

But not after April, Mr. Thomas. How come next spring an extremely low priced housing project goes up between you and the sunset?

[Mr. Wardman (Realtor)]

Well, well, Mr. And Mrs. Thomas, good to see you again. Are your financial troubles all straightened out now?

[Bob Thomas]

No, Mr. Wardman. And they won't be until you give back that $2,000 earnest money.

[Mr. Wardman (Realtor)]

But I told you, Mr. Thomas, that's absolutely impossible.

[Virginia Thomas]

But we're not going to take the house, Mr. Mr. Wardman. We can't raise the additional money. And besides, we just don't want it.

[Bob Thomas]

Now, what my wife is trying to be nice about is the fact that you deliberately misrepresented the value of that house, Mr. Wardman.

[Mr. Wardman (Realtor)]

Misrepresented? Why, I'm sure you must be mistaken, young man. I never misrepresent.

[Bob Thomas]

You said it was valued at $25,000, Mr. Thomas.

[Mr. Wardman (Realtor)]

I am sure I never made such a statement of value.

[Bob Thomas]

Well, you certainly indicated it was worth it. Naturally, we assumed we could get at least a $12,000 mortgage.

[Mr. Wardman (Realtor)]

I'm afraid you assumed yourself into this problem, Mr. Thomas. Please don't blame me.

[Bob Thomas]

Why shouldn't I blame you for so neatly representing this as a first class house when much of it is cheaply and poorly put together?

[Virginia Thomas]

Yes, and talking about the wonderful view when you knew all the time a housing project's going up there next spring.

[Mr. Wardman (Realtor)]

I knew of no such thing.

[Bob Thomas]

Well, I know something. I know that's the last money that'll go into this phony deal, contract or no contract.

[Mr. Wardman (Realtor)]

For your sake, Mr. Thomas, I hope you won't be rash. My party not only can but will enforce the contract you signed. It's perfectly legal and binding. Now, I hope that you won't force him into court for a judgment against you.

[Bob Thomas]

There's the story of our smart real estate venture, Mr. Ross. Now, where do we stand?

[Randolph Ross (Lawyer)]

On very shaky legal ground, Mr. Thomas.

[Virginia Thomas]

I was afraid of him.

[Bob Thomas]

Can this wardman actually keep our two? Yes.

[Randolph Ross (Lawyer)]

His commission becomes due and payable the minute he succeeds in producing a buyer. Ready, willing and able.

[Bob Thomas]

But we're not able. Not since we discovered the house won't take a twelve thousand dollar mortgage. You should have thought of that possibility.

[Randolph Ross (Lawyer)]

Before you signed the contract, Mr. Thomas. If you expect to borrow a part of the purchase price, proper provision should be made in the contract for return of your earnest money in the event you're unable to obtain the loan of money needed.

[Bob Thomas]

But it was just that simple little paper. A memo, he called it. And wardman said the contract would come later.

[Randolph Ross (Lawyer)]

Memo bid offer to buy. It can go by a variety of names, Mr. Thomas, and it can look as simple as an IOU. But when you sign to buy a house, that paper may become a binding contract establishing many of your important rights and obligations in the transaction to follow. Well, this is true, even if a second paper called a contract is signed later on.

[Virginia Thomas]

Well, what other things should be in the first paper, Mr. Ross?

[Randolph Ross (Lawyer)]

Several terms should be definitely established, Mrs. Thomas. For, for instance, the date of possession. Many buyers have the idea that ownership gives them immediate possession. Then they have to wait a long time to get in.

[Virginia Thomas]

We have only 60 days to vacate our apartment. What if the owner wouldn't leave this house right away?

[Randolph Ross (Lawyer)]

That's right. Other terms that should be in the first paper are the type of deed involved, evidence of title, A, legal description.

[Narrator]

And size of your property.

[Randolph Ross (Lawyer)]

For instance, I'm wondering if that additional playground area you mentioned actually goes with the property or is merely being used by the present resident.

[Virginia Thomas]

What? That never even occurred to me.

[Randolph Ross (Lawyer)]

A complete list of personal property should be included in that first paper, too. I'm afraid that little memo you signed had nothing in it for your protection.

[Bob Thomas]

In other words, we're sunk for the.

[Randolph Ross (Lawyer)]

Earnest money and the remainder of the $16,500.

[Bob Thomas]

But we simply don't have the extra money, Mr. Ross. We can't get blood out of a turnip, as they say.

[Randolph Ross (Lawyer)]

That may be, Mr. Thomas. A lawsuit will bring out the fact that you do have more funds available.

[Bob Thomas]

I'd like to know where.

[Randolph Ross (Lawyer)]

Well, what about that farm of yours.

[Bob Thomas]

In Wisconsin, the one my folks are living on? Why we wouldn't sell that under any consideration.

[Randolph Ross (Lawyer)]

I'm afraid you'd have no choice. You could not prevent its being sold to satisfy a judgment.

[Virginia Thomas]

Then there isn't any hope of getting out of this predicament?

[Randolph Ross (Lawyer)]

Yes, there is a little hope, Mrs. Thomas. Our one hope lies in quick action. Frankly, I think there is some strength to your charge of misrepresentation, but it's far from a clear case. Since the days of the horse traders, salesmen have had considerable leeway, particularly in matters of opinion. Whether we keep you out of the courts depends largely on how your Mr. Wardman reacts to a challenge.

[Bob Thomas]

Well, Mr. Wardman, the four of us.

[Randolph Ross (Lawyer)]

Have sat here for two hours wrangling back and forth with charges and countercharges.

[Mr. Wardman (Realtor)]

That's right. And I'd like to see this situation ironed out as much as you would. You Thomases claim that I'm misrepresented. And I claim that you assumed entirely too much about the property. No one forced you to sign that memo. And I can prove that there were other interested parties at that time.

[Randolph Ross (Lawyer)]

Well, let me sum up our attitude, Mr. Wardman. There is a good case here that's evident. We feel that the seller has had his rights abused to a certain extent. However, you would have a hard time defending in court against our claim of misrepresentation. We would prefer not to force it to a showdown. Do you have any suggestions?

[Bob Thomas]

Well.

[Mr. Wardman (Realtor)]

Well, let's put it this way. It's not true that I misrepresented to these people, but. Well, it might be that I pushed them along a little too hard. Maybe I seemed to build this property up a trifle beyond its actual worth. You might be able to prove this, and then again, maybe not, too. But I have a clean record as a realtor, Mr. Ross, and I represent an honorable and ethical profession.

[Randolph Ross (Lawyer)]

Oh, there's no doubt of that, of course.

[Mr. Wardman (Realtor)]

Well, I'll do this. I'll release you folks from this country.

[Bob Thomas]

Fine.

[Randolph Ross (Lawyer)]

And now what about the commission you've taken out of the earnest money?

[Bob Thomas]

Well, I'll return that to you.

[Randolph Ross (Lawyer)]

Thank you, Mr. Wardman. I'm sure Mr. And Mrs. Thomas deeply appreciate your gesture.

[Virginia Thomas]

Oh, we certainly do, Mr. Wardman.

[Bob Thomas]

Thank you very much.

[Randolph Ross (Lawyer)]

It's all right.

[Mr. Wardman (Realtor)]

Well, now that everything seems to be settled, I. I wonder if you'd let me try to earn that commission back again. It just so happens that my client has another property much closer to your requirements. I'd like to show it to you.

[Virginia Thomas]

I'd like to see it. How about you, dear?

[Bob Thomas]

I'M in favor of it, Mr. Wardman, but I'm making no more real estate decision of any kind without counsel. How about it, Mr. Ross?

[Randolph Ross (Lawyer)]

You mean you've decided lawyers aren't just for landlords and big shots? Mr. Thomas?

[Bob Thomas]

Completely convinced, Mr. Ross.

[Narrator]

Now, here to summarize today's case dismissed is your counselor, Dean John C. Fitzgerald.

[Bob Thomas]

Of the Loyola University Law School.

[Narrator/Announcer]

Dean Fitzgerald, as attorney Ross, proved to the Thomases, the apparently simple act of buying a home is a potentially hazardous undertaking. There are many legal aspects of which you as a prospective buyer should be aware. Do you know, for example, the meaning of title of joint tenancy, mechanics, lien, warranty, deed? Do you know what happens if you miss a payment on a contract purchase? To answer some of these questions and to point out some of the basic precautions you should take, the Chicago Bar association offers you a free folder entitled so you're going to buy a home. To receive your copy, write to the Chicago bar Association to 29 S. LaSalle Street, Chicago, 3, Illinois. The address again, Chicago Bar Association, 29 S. LaSalle St, Chicago, 3, Illinois. Before we leave tonight's story, I want to remind you that the legal points in the story are based on Illinois law and may not apply in your state. May I point out, too, that the facts and your situation will probably differ from the facts present presented in this story. This difference in the facts may change the application of the law. So if you are in need of legal counsel and do not know a lawyer, get in touch with the Chicago Bar Association. The association maintains a lawyer reference plan which will refer you to an attorney. Next week. WMHU and the Chicago Bar association take up some legal problems of making a will. Until then, this is your counselor, Dean John C. Fitzgerald, wishing for each of you a good night, good luck and good laws.

[Narrator]

Case Dismissed. Case Dismissed is written by Robert Common and is based on information supplied by the Chicago Bar association and its lawyer members. All characters were fictitious and any resemblance to any person, living or dead, is purely coincidental. Members of the cast were Meg Horn, Arthur Peterson, Jack Lester, Stanley Gordon and Sydney Bree. Case Dismissed is produced by Betty Ross. Direction by Herb Lato. Musical effects were transcribed, sounds by Tom Evans and engineering by Harold Whitterbury. And this is Lee Bennett speaking, inviting you to return next Saturday at the same time when we'll discover what happens when there's a will on Case Dismiss. This is the NBC Radio Network.