Posted by Mary on September 05, 2005 at 13:41:37:
JohnBoy
Thanks! I will follow that advice as well!
BAD CONTRACT - Posted by Mary
Posted by Mary on September 04, 2005 at 21:46:49:
I’m Angry. I got an offer accepted on a house yesterday the first day it went on the market. I offered the asking price and they accepted. We both signed contract from realtors. Now her realtor has called mine to say that she has a matching offer and now the price is changed to “highest price offered” The property did not have a chance to go under attorney review yet, so now my realtor says I have to make a higher offer! I thought the contract was binding? Is it true she can do this since it did not make it to attorney review yet (because of the holiday)? I feel they should honor the contract and accept my offer at the asking price. My agent is angry as well but he says its legal but not ethical! Am I being tricked?
Thankyou for any strategy advice! -
Re: BAD CONTRACT - Posted by JohnBoy
Posted by JohnBoy on September 05, 2005 at 11:21:44:
Did they have a “matching offer” or did they get a “better” offer? If it is merely a “matching” offer then both parties have made the “same” offer and the first party should have first right to the property.
I assume both parties, you and the seller have both signed the contract, correct?
Is the contract subject to both, the buyer’s attorney and the seller’s attorney review of the contract? Or is it only subject to the buyer’s attorney review of the contract?
If it is subject to the buyer’s attorney reviewing the contract then then contract is binding as long as your attorney approves of it with no other changes. If you accept it “as is” then it is binding.
If it is subject to the buyer’s attorney reviewing the contract then the buyer’s attorney could find something to reject the contract as it is written. Although if the buyer’s attorney wants to reject it as is it written then it may depend on whether you agree to accept any changes they want to make. If you accept any changes they want in the contract then it may still be binding.
It will all come down to what the contract says. If it is written is such a way that it allows the buyer’s attorney to just reject it without having to allow you to agree to any changes of any objections the buyer’s attorney has, then the seller could use that to get out of the contract and accept the other contract.
Since they claim to have a “matching” contract offered I would ask to see a copy of that contract to confirm it. Then compare the two to see if they actually “match” each other or not. Did they use the same contracts with the same wording as your contract?
What does the contract say about having approval of yours or the buyer’s attorney’s review?
Does it even address anything about having anyone’s attorney review it? If so, exactly what does it say?
Have your attorney look at it and determine if they can back out of it or not. Lawsuits are expensive, so a letter from your attorney threatening to sue over this may force the seller to go through with it. It comes down to how much more were they offered VS how much would it cost to go through a lawsuit to defend it to get the other offer over your offer.
As long as both parties have signed the contract you have something to go on. How far you or the seller are willing to go with this to defend your rights is what could determine the outcome.
If it were me and I wanted the property and I had a signed contract by both sides, I would threaten to sue and tie the property up in litigation for months if they don’t honor their end of the agreement. But read the contract first to see what it actually says and have your attorney review it to get a legal opinion on it. Don’t go by what some realtors tell you. Go by what an attorney tells you!
A nice threatening letter from your attorney to the seller, their agent and the seller’s attorney may be all you need to quickly resolve the matter.
read the contract !! - Posted by Jimmy
Posted by Jimmy on September 05, 2005 at 08:07:56:
if the contract contains a provision which makes acceptance of an offer contingent on attorney review, then the seller is probably right.
if it does not, you may have a legitimate gripe.