Cancellation Fee Subject of $250K Real Estate Lawsuit

by Arkansas Business Staff  on Monday, May. 26, 2014 12:00 am  

"For sale" signs discarded on the Wilcox property.

Here’s a curious lawsuit filed by a realty firm chasing a $250,000 cancellation fee it alleges has gone unpaid.

The plaintiff: Wayland Realty of Newport.

According to the suit, filed in Pulaski County Circuit Court, Wayland was trying to sell about 620 acres in North Little Rock.

The land belonged to defendant Meadows Bay LLC, a company run by one Shirley Wilcox, who also owns Interstate Landscaping & Erosion Control Inc. in Little Rock.

Wilcox had given Wayland one-year exclusive rights to sell the land starting from November 2013. The offering price for the land was $2.5 million.

In January, a buyer offered $1.5 million for the land: about $2,500 per acre. Prior to the offer, the land was appraised at $2,600 per acre.

Meadows Bay refused the offer, and then it gets weird.

Soon after the offer was made, Meadows Bay attempted to cancel its agreement with Wayland. That required a cancellation fee of 10 percent of the listing price: $250,000. It didn’t get paid, the suit said.

But then, on Feb. 14, Meadows Bay transferred the property to Southeast Financial Management LLC, a company owned by Wilcox’s ex-husband, George Wilcox. Southeast paid $2,970 and executed a promissory note of $328,405 in favor of Shirley Wilcox, the suit claims.

The land had belonged to the Wilcoxes when they were married; in 2010 the property was transferred to Shirley from George, and Shirley took out a $737,687 mortgage on the property from BancorpSouth.

In March, Meadows Bay again attempted to cancel its agreement with Wayland without paying the fee.

(Not) For Sale

 

 

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