Posted by Natalie Smith on October 20, 2004 at 12:20:25:
I think he’s saying that it’s only one offer, but with 3 different buyers on the one offer. I’m making an assumption that the 3 buyers are applying for one loan.
I’m not an attorney, but as you said, if the seller signs it, with no changes, it should be a binding agreement.
If there’s a financing contingency, and one of the three buyers can’t get financing, but the other two can still get the financing, then I would think that all three buyers are still bound to the contract.
BUT, if the one buyer can’t get financing, and that results in the other two buyers not being able to qualify for the loan, then hopefully the financing contingency is worded so that they are no longer bound to the contract and eligible for the return of their earnest money. It depends on the terms of the contract, right?
Multiple Offers for one property - Posted by Lance Pifer
Posted by Lance Pifer on October 19, 2004 at 15:48:01:
If there are 3 buyers submitting an offer for one property are the 3 buyers bound to the contract once the offer is accepted. Additionally if one of buyers is refused financing is the contract/offer then void or are they in breach of contract per California Law? Please let me know if you need additional information
An infinite number of prospective buyers can submit offers on a single piece of property. No one is bound to any agreement until the seller signs one of the offers and accepts it. Afterwards, all other offers are generally terminated. In most CA pre-printed purchase contracts (such as the CAR or PRDS form), there is usually an express date and time on which the offer terminates.
As to the financing, it depends on what the contract says. Some contracts have a financing contingency that will allow the buyer to terminate the contract if they are unable to obtain financing at the terms specified in the agreement.
If you have an issue, have your broker or attorney look at it so that you can be properly advised.