Why one person can cause so much havoc with St. Thomas Real Estate

February 11, 2010

I hope you have had the chance to read the last blog:

http://stthomasre.com/st-thomas-virgin-islands-blogs/the-shady-side-of-r...

As previously stated, we don't know whether Rosemary Sauter of REMAX has stolen escrow monies and run away. What we have learned is that closings have not happened due to escrow monies not being released by Rosemary and REMAX. These funds typically represent deposits made by buyers towards the property they plan to purchase. Regardless of whether the funds are there, it is very clear that her actions have caused a lot of hurt for a lot of people.

First, let's assume the funds are still there. We read the story in the Virgin Islands Daily News about Chuck Pessler, who gave funds to St. Thomas REMAX in order to purchase a condominium at Cowpet Bay. It also appears that the seller really needed to sell the condo. Since the deposit funds were not released, the rumor is that the unit is now headed to foreclosure. Whether Chuck gets his funds back remains a question. But it does appear that he will not get the condo he was trying to purchase. Additionally, the seller now will be foreclosed upon instead of him getting funds for the unit (at least this is what I have heard). This is a terrible scenario for both sides and doesn't even consider the realtors who lost their commissions.

It is far easier to imagine the huge damage if funds have actually been stolen from escrow. Think about the following:

  • Buyers that have lost their deposit made towards a purchase
  • Sellers that thought their units were sold and now that will not happen
  • Vacation renters from the States that put down money for a rental
  • Homeowners that don't get paid for their rentals
  • Long term renters that put damage deposits into escrow
  • Vendors that will not be paid for work done on property management jobs with REMAX

There is so much more. So much more. This is a huge issue that will affect a lot of people. But the biggest long term hurt is to the entire Virgin Islands. One person has the ability to give the appearance that Virgin islands Real Estate Brokers cannot be trusted. And it will take a long time to recover from this.