Posted by Natalie-VA on February 26, 2008 at 08:11:16:
Hi Rich,
I would prefer it your way too, but I don’t make too many changes to our local contracts. When RE Agents don’t understand something, they normally reject it, so I try and pick my battles.
The important thing to remember about the way it’s done here is that it’s not just the signing of the contract that ratifies it, it’s the signing AND the communication that makes it ratified. A lot of agents still don’t understand that, so there’s still confusion.
Is it possible to make several offers on different properties(30 for example) and if all offers are accepted I pick the one I like without getting in trouble?
Put a 48 hour home inspection contingency in each offer. This should state you have the right to declare the contract void for any reason within 48 hours. Agree not to deposit the deposit check until this contingency has been met.
Posted by Rich-CA on February 25, 2008 at 16:47:22:
I add the words “buyer is making offers on multiple properties and the first offer accepted as written nullifies all other offers.” I also no longer submit earnest money unless I have a countersigned copy of the contract. Had too many refuse to release the EM immediately on failing to come to agreement on a sales contract. Now I only submit a copy of the check.
Re: Making several offers on different properties - Posted by george
Posted by george on February 25, 2008 at 06:48:21:
Also remember that you are going to have to find a green, naive realtor to submit this many offers on a shotgun basis. An experienced pro who knows the value of his time, knows you are a newbie and will tell you to find a newbie agent.
but if you get 2-3-4 acceptances simultaneously, you have a problem. because the acceptance by the seller makes a contract.
add some language to your offer form. maybe say the offer has a shelf life of 24 hours, after which it is dead. and the seller’s act of signing the offer after the 24 hour mark represents a new offer back at you.
personally, I don’t like this idea of throwing around lots of offers. I prefer a rifle to a shotgun.
I don’t think you run the risk of committing to buy more than one.
An offer can be “withdrawn” at any time, and once you’ve accepted one… you can simply “withdraw” all other offers by phone, fax, or e-mail (or all three)… and if for some reason you have been unable to reach the other offers to “withdraw” you could simply refuse delivery… because in order to be considered an accepted “contract” it must be signed & “DELIVERED”, and if you refuse deliver (even if they walk into your office, contract in hand and walk up to you to hand it to you, you can simply say, sorry the offer is withdrawn, we’re refusing delivery.
Regarding initial earnest money given with the offer… here in northern illinois, our typicaly i.e.m. is $1,000.00 and what I usually do is provide a “photocopy” only, of the check with the offer, because the check is not cashed until the offer is accepted. Therefore once we have the fully accepted offer in hand, then we turn over the real check. This way you don’t have a check to chase after if the offer doesn’t work.
Now, again, I’m not recommending it, 'cause it’s fraught with difficulties, and as the sellers and seller’s agents it totally stinks, and plays with peoples emotions.
If the rules in your RE Marketplace don’t disallow multiple simultaneous offers to purchase, I would
suggest that some special clause on each Offer to Purchase that disclosed that other Offers were being made & that the Acceptance of any of the Offers was subject to
your Final Approval! This not only to protect you, but to be fair to the Sellers involved!
Re: Making several offers on different properties - Posted by Rich-CA
Posted by Rich-CA on February 25, 2008 at 21:51:46:
I encountered this in TX. If the counter signed contract was not received by the Escrow officer, then it was not a legal contract. They called it a “receipted contract”. Its part of the process. The Earnest Money was not due in until after the contract was received.
Re: Making several offers on different properties - Posted by Natalie-VA
Posted by Natalie-VA on February 26, 2008 at 06:25:43:
I wonder if that’s law, or custom, or if it’s just written into those contracts? It doesn’t work that way here. The original poster should verify this before using that approach.
Where I am, all you have to do is sign the contract and communicate to the other party (or their agent) that it’s ratified. Delivery doesn’t come into play.
Posted by Rich-CA on February 26, 2008 at 07:21:23:
Its not like that in CA, AZ or CO where I also do business, just TX. In TX RE transactions are heavily influenced by the Board of Realtors, so it may even be the trade association rules.
Personally I like it. Having someone tell me the contract is signed leaves things in the realm of a verbal agreement until I actually see the contract. Which for most people is fine, but there are a few who would withhold the contract with both signatures, maybe even destroy it, if a better deal came along in the mean time. So now, until I have my own copy of the contract, I do not consider it properly executed and add that verbiage into my contracts.
For myself, I am finding that there are fewer and fewer people with enough integrity to stick to an agreement when it no longer benefits them.