 Case dismissed. You mean to say just because my wife and I signed a simple little memo, we've lost $2,000 and we're stuck with a $16,500 hope we don't even want? 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, relatedly. Oh, for goodness sake, Bob, stop pacing back and forth. Anybody think it was your office? Well, it isn't. 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. Now stop it, Bob. We're here because we're in trouble, and the only way we're gonna... You're telling me we're in trouble. Compared to Earth, Job was a lighthearted playboy. $2,000 stolen right out of our innocent little hands without... Oh, Bob, we just have to get it back, or... Well, who was it that wanted that house so bad we couldn't wait? Robert, who was it that wouldn't think of paying a lawyer? Well, if we'd never gone out looking for a house... We didn't have any choice in the universe. Come on now, just sit down. The lawyer's coming back. Just be quiet now. Okay, okay. Hello, I'm Randolph Ross. You must be Mr. and Mrs. Thomas. Glad to know you, Mr. Ross. I'm Bob Thomas, and this is my wife, Virginia. How do you do? Hello, Mr. Ross. Uh, sit down. Won't you, Mr. Thomas? Huh? Oh, oh, yeah, yeah. From your phone conversation, I gather you're involved in real estate difficulties. Oh, yeah. That's putting it mildly. Well, perhaps you'd better tell me how it all started, Mr. 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. Ginny and I have two children. Mike is ten and Linda's seven. And you know how difficult it is finding apartments with two youngsters, Mr. Ross. Yes, I understand it's still very difficult. Oh, uh, what was your landlord's reason? Son and family want our apartment. Yeah, a funny story if I ever heard one. We'd want to fight this. I bet we could have. On what grounds, Mr. 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. For your sake, Mr. Thomas, I'm glad you didn't follow that advice. Well, uh, 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 benefitted. You see, just like I said, Ginny, lawyers. Now, Bob, just calm down. Mr. Ross should know. I'd be interested to know what you meant by that, Mr. Thomas. Oh, well, nothing. Only it always seems to me you lawyers are always on the side of the landlords on the big shots and like that. 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 why... Oh, no, Mr. Ross, Bob just upset. He didn't mean that, did you, Bob? Well, no, no, I didn't really, Mr. Ross. I'm sorry. I just can't get over this dirty deal they put over all this. 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 put over on you as you put it. 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. And I went through the suburban homes for sale. This one sounds good, Jenny. Modern five-room, near Lake, ten minutes from the loop, four blocks to schools and parks. $185 a month. Children okay. Children okay. How nice. Life can go on because children are okay. Well, you know what they mean. Unfortunately, I do. Four blocks to school, parks, and all the pavements to play on, their little hearts could ever desire. You're being bitter, Jenny. 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. Well, I don't know, honey. Oh, come on, now. What have we got to lose? Answer. Exactly $4,500 cash. Can I look at our savings books? No. Let's look at this, Bob. Oh. Glenwood Heights. Thirty-five minutes from the loop, lovely seven-room, three-bedroom colonial residence. A tax garage, large porch, kitchen, dining room, large living room. And listen to this, dear. Extra room upstairs with skylights suitable for studio. Hey, how about that? Near fine public schools, churches, fast railroad transportation. Very large yards. Beautiful. Bob, isn't this a wonderful setting? Uh-huh. Well, come on, now. Admit it. Just look at that line of stately pine trees. Oh, and that long, unobstructed view across the meadow there. For some reason, I've learned to love the line of stately old, elevated girders and the short, unobstructed walk to the office. Goofy. Come on, let's walk around the house. Mr. Wardman sent me Odinworth in Florida, so nobody'll mind. OK, but I mind. And not being in Florida, I mean. Gee, they've had more snow out here. Oh, nothing a 10-ton snow plow won't clear away. Very funny. Can't you say something optimistic? I admit this place looks pretty nice, honey. And this is the worst season to look at it, too. Oh, it is wonderful, isn't it, dear? Oh, just look at this wide backyard. Seems to go on way past the garage. And look at all that playground equipment set up over there. For the opponent looking, too, like a regular kid's playground. Golly, won't Mike and Linda love it? Assuming we buy it. OK, so I'm weakening. Bob, do you see what I see? Where? Right over there. A greenhouse? Yeah, yeah, I guess it is. A small greenhouse. I never dreamed we'd run into anything like... Oh, Bob, just imagining being able to grow flowers all through the winter. 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 a natural for painting landscapes. Oh, 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 you? I don't know. I sure wish a fellow wardman would show up and tell us what I know about buying a house. Well, to just don't let Mr. Wardman know. Oh, I don't know, dear. After all, a real estate man represents the buyer as well as the seller, doesn't he? I suppose so. Anyway, I wish he'd get here so we can look inside and get the price. Hey, 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. 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. Well, all right, Mr. Wardman. But that big surprise better not be too big, Mr. Wardman. If you know what I mean. Honey, these bedrooms for the children are simply wonderful. The master bedroom is pretty great, too. Oh, especially compared to the tiny little bedroom we have now. Here a man could actually enjoy sleeping late on Saturday morning. Yes, sir. And may I say you equally enjoy big crackling fires down here on Saturday nights. Oh, Bob, what a lovely living room. A nice-looking fireplace, all right. It seems to be a crack down there in the flooring at the back of the house. Oh, well, that's nothing, of course, Mr. Thomas. We'll be happy to putty it up for you. Leave it alone. Really, it kind of adds to the charm of the fireplace. You're being silly. I mean it. It kind of gives the house that lived-in look. That's a fine coal furnace converted to an equally fine oil-burning unit, Mr. Thomas. Extremely efficient heating, I might add. Quite inexpensive. Good. I'm a great guy for saving money. Well, I somehow sensed you were, Mr. Thomas. And that's why the price here will delight you. And you won't tell us till later, Mr. Warden? It's all, Mr. 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. Shall we leave quietly here? No, no, no. Please don't jump to conclusions, Mr. Thomas. By the way, wouldn't this basement make an excellent recreation room? I think we'll use all of it for a laundry, Mr. Warden. If the house costs what I suspect, my wife will be taking in washing. 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. Well, you certainly time your tours very effectively, Mr. Warden. Just look out through that picture window, Bob. What a sunset. Just one of those little extras I always throw in, Mr. Thomas. Seriously, folks, I know I don't have to send 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. Yes, we both grew up in the country, Mr. Warden, in Wisconsin. We still have a little farm up there, as a matter of fact. Oh, really? Wisconsin? That's interesting. Shall we drive back to my office now and discuss how soon you will start really living here in Illinois? Now, then, folks, what do you honestly think that fine house will cost you? I don't know. All I can figure is that it's beyond our price. What did you get, Thomas? I don't have any idea, really, but you said the nearest house was in the $30,000 bracket, Mr. Warden. It didn't look much better when we passed it. Would you think about about $25,000? Gee, well, yes. I imagine about that. Maybe even a little more. I suspect you folks know more about current home prices than you let on. Really? $25,000, yes. I'm sorry, Mr. Warden, and that lets us out of the picture. Oh, yes. We couldn't possibly finance anything like that. Now, hold on, folks. Wait a minute. Wait a minute. We were talking about the value, not the asking price. I said you were right, and you were. Of course. But it just so happens that we have some extenuating circumstances involved in the sale. In fact, I don't think you can afford not to buy it at $16,500. $16,500? Oh, now, Mr. Warden. 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 get the full value of this fine home, 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, that tremendous gain. That's pretty plain. It seems too bad. Well, that's business for you, Mrs. Thomas. Well, what do you think, honey? I haven't a doubt about it yet. Naturally, folks. Of course, now, there's no point in making up our minds tonight, and it's always wise to sleep on any big decision like this. 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 plans. You mean we have competition? All right. I'll be very frank with you, because, well, I like you too, 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. Boy, this could be quite a dog fight. Well, it wouldn't be fair to use this as pressure on you, Mr. Thomas. Not fair at all. That's not the way I operate. As a matter of fact, well, nothing at all may happen tonight. But a house valued at $25,000 going for $16,500. Bob, we're both convinced about that house, aren't we? Sure. We looked it over pretty carefully, and it fits on each to a T. What do you think? Why don't we call a lawyer and go ahead and sign it tonight, dear? I'm for it, honey. Only, well, why the lawyer? Well, I've read somewhere that you shouldn't try to buy or build a house without having the aid of a lawyer. Well, I'd just like to say there's many legal fees as possible, hon. This house will cost enough anyway. We'll have to cut some corners. Yes, but you don't understand all that gobbledygook language in real estate contracts and so forth. Do you? No, but that all comes later on, doesn't it, Mr. Thomas? 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. Any gobbledygook words in there who swindle? No, sir, none at all. I assure you, Mr. Thomas, yes, 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 as you wish. However, it may ease your mind to know that I have sold many millions of dollars worth of real estate in my time and I've never once had a kickback of any sort. Well, I'm ready to sign. I guess I am too, Mr. Wardman. Good. Now, there is just one term that may be slightly strange to you at that time. I mean, the earnest money. 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. That's right. Clever boy. Maybe we don't need a lawyer after all. 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. I'll make a check, Mr. Wardman. What's the usual amount? Oh, 10 to 15 percent is all right, I'm sure. Why not write it out for, go say, $2,000? This is the Robert Thomas residence. Mrs. Thomas? Speaking. Mrs. Thomas, this is Morgan at the bank. Oh, yes. About the requested $12,000 mortgage on your home. Yes, is everything all right? Mrs. Thomas, I've inspected the home and premises today, and I have assessed the total valuation at $13,500. But there must be some mistake. I regret to inform you, Mrs. Thomas, the very best mortgage the mayor can extend to you is $9,000. Not a cent more. 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. But, my dear Mr. Thomas, that's quite impossible. Impossible? Yes, indeed. You see, I've already taken my commission from the earnest money. That became due to me when I successfully found a 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. Young man, you signed that little memo to bind the bargain you and your wife definitely signed a legal contract. Speaking. 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 defect? I'll be happy to, Mr. Thomas. Great. I'll meet you at the house in just an hour. The 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. Well, that could mean a whole new floor sometime. Yes. Now, I'll rid you you didn't look inside the furnace at all. Well, no. As a matter of fact, Mr. Wardman said it was a fine coal furnace with a fine oil conversion unit. True to an extent. But look inside the furnace with this flashlight. Hey, these grates look like junk. The firebreak lining is worse. You have a new heating plant in your future. Come upstairs now. Well, here I can say I actually saw the defect, Mr. Morgan. That's crack in the floor near the fireplace, but I imagine that's pretty trivial. 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 studying without any sheathing. Construction all through? 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. Real powdery just crumbled away. Hey, I've had enough. I know why you put a $13,500 valuation on this property. Just one more item, Mr. Thomas. You mentioned the excellent view you have from this picture window. Yeah, that sunset is about the only good point left. But not after April, Mr. Thomas. How come? Next spring, an extremely low-priced housing project goes up between you and the sunset. Well, Mr. and Mrs. Thomas, good to see you again. Are your financial troubles all straightened out now? No, Mr. Wardman, and they won't be until you give back that $2,000 earnest money. But I told you, Mr. Thomas, that's absolutely impossible. But we're not going to take the house, Mr. Wardman. We can't raise the additional money. And besides, we just don't want it now. What my wife is trying to be nice about is the fact that you deliberately misrepresented the value of that house, Mr. Wardman. Misrepresented? Why, I'm sure you must be mistaken, young man. I never misrepresented. You said it was valued at $25,000. Mr. Thomas, I'm sure I never made such a statement of value. Well, you certainly indicated it was worth it. Naturally, we assumed we could get at least a $12,000 mortgage. I'm afraid you assumed yourself into this problem, Mr. Thomas. Please don't blame me. Oh, I 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. Yes, and talking about the wonderful view when you knew all the time a housing project's going up there next spring. I knew of no such thing. Well, I know something. I know that's the last money that'll go into this phony deal. Contract or no contract. 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. There's the story of our smart real estate venture, Mr. Ross. Now, where do we stand? On very shaky legal ground, Mr. Thomas. Oh, I was afraid of this. Well, can Ms. Wardman actually keep our $2,000? Yes. His commission becomes due and payable the minute he succeeds in producing a buyer ready, willing and able. But we're not able. Not since we discovered the house won't take a $12,000 mortgage. You should have thought of that possibility before you signed the contract, Mr. Thomas. If you expect to borrow a part of the purchase price, proper provisions 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. But it was just that simple little paper. A memo, he called it. And Wardman said the contract would come later. A memo, bid, offered a 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. Well, what other things should be in the first paper, Mr. Ron? Several terms should be definitely established, Mrs. Thomas, for instance, the date of possession. Many buyers have the idea that ownership gives them immediate possession. They may have to wait a long time to get in. And we have only 60 days to vacate our apartment. What if the owner wouldn't leave this house right away? That's right. Other terms that should be in the first paper are the type of deed involved, evidence of title, a legal description, and size of your property. 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. Well, that never even occurred to me. A complete list of personal property included in that first paper, too. I'm afraid that little memo you signed had nothing in it for your protection. In other words, we're sunk for the earnest money. And the remainder of the $16,500. But we simply don't have the extra money, Mr. Ross. We can't get blood out of a turnip, as they say. That may be, Mr. Thomas. A lawsuit will bring out the fact that you do have more funds available. I'd like to know where. Well, what about that farm of yours in Wisconsin? The one my folks are living on? Why, we wouldn't sell that under any consideration. I'm afraid you'd have no choice. You could not prevent it being sold to satisfy a judgment. Then there isn't any hope of getting out of this predicament? Yes, there is. A little hope, Mrs. Thomas. Our one hope lies in quick action. Frankly, I think there is some frank 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. Now, whether we keep you out of the courts depends largely on how your Mr. Wardman reacts to a challenge. Well, Mr. Wardman, the four of us have sat here for two hours, wrangling back and forth with charges and countercharges. That's right. And I'd like to see this situation ironed out as much as you would. Now, you, Thomas, has claimed that I 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 iterative parties at that time. 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? Well, 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 seem 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. Oh, there's no doubt of that, of course. Well, I'll do this. I'll release you folks from this contract. Fine. And now what about the commission you've taken out of the earnest money? Well, I'll return that to you. Thank you, Mr. Wardman. I'm sure Mr. and Mrs. Thomas deeply appreciate your gesture. Oh, we certainly do, Mr. Wardman. Thank you very much. That's all right. Well, now that everything seems to be settled, 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. I'd like to see it. How about you, dear? 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? You mean you've decided lawyers aren't just for landlords and big shots, Mr. Thomas? Completely convinced, Mr. Ross. Now here to summarize today's case dismissed is your counselor, Dean John C. Fitzgerald of the Loyola University Law School. 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 liens, 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 29 South La Salle Street, Chicago 3, Illinois. The address again, Chicago Bar Association 29 South La Salle Street, 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 in your situation will probably differ from the facts 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 law. Case dismissed. Case dismissed is written by Robert Carmen 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 Sidney Breeze. Case dismissed is produced by Betty Roth, direction by Herb LaTolle. Musical effects were transcribed. Sound by Tom Evans, engineering by Harold Witteberry, and this is Lee Bennett speaking, inviting you to return next Saturday when we'll discover what happens when there's a will on Case Dismissed. This is the NBC Radio Network.