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April 27, 2009
Open House Post Signed Contract?
We recently signed a contract for a house in Bayridge but the owner continues to have open houses every week. Is that normal? Should we contact our lawyer?
Thanks
Comments
That happened to me. What I was told is that they can do it but can't take new offers. This is just a contigency plan just incase you, the buyer, back out of the deal and they might have someone else interested.
Posted by: zuffy at April 25, 2009 5:45 PM
There are a couple of reasons a broker/owner may continue to have open houses:
1) The broker/owner may have already scheduled open houses before the contract was signed.
2) A signed contract by the buyer is not worth the paper it's written on until it's counter-signed (executed) by the seller. A responsible broker/owner may continue to have open houses until that is so.
Until that signed contract is back in your lawyer's hand - the owner can take other offers.
Posted by: Crownlfc at April 25, 2009 9:34 PM
this is a yet another simple way for seller to put pressure on the buyer: "you better take the house or somebody else will give me more money ... and I will take it".
Posted by: bobjohn at April 26, 2009 1:24 AM
In my experience , yes until attorney review is over. They need a fall back. Many deals do not get past attorney review.
Posted by: lilly9 at April 26, 2009 9:29 PM
In my experience , yes until attorney review is over. They need a fall back. Many deals do not get past attorney review.
Posted by: lilly9 at April 26, 2009 9:29 PM
In my experience , yes until attorney review is over. They need a fall back. Many deals do not get past attorney review.
Posted by: lilly9 at April 26, 2009 9:29 PM
I think it's only prudent on the part of the seller, esp. in when mortgages are hard to secure. Don't take it personally. Once you get a countersigned contract in your hands, you can breathe easier...I'm sure the sellers' anxiety is as high or higher than yours at this point in time...
Posted by: Bolder at April 26, 2009 10:05 PM
I would send a friend into one of those open houses and then have that friend "make an offer." Let's see what the buyer does with that! If they accept, you can find him in breach of contract and back out of the deal. If they don't accept the offer, then you know he still wants to go through with th sale.
Posted by: bergenandnevins at April 27, 2009 10:16 AM
Did the seller sign? If so, it's generally for backup. But still.
If not, suggest get on the phone and tell your lawyer and their realtor that if there's any more open houses to let you know and you'll rescind. You respect the seller's right to get a better price but it's not your goal in life to help them.
Good luck!
Posted by: Johnny at April 27, 2009 10:23 AM
Disagree with B&D. If seller ahsn't signed, you don't have a breach. But there is an etiquette issue. I've always understood that both sides are to act in good faith in moving towards contract. I understand that an open house with an accepted offer but no contract is common, but if you've tendered a contract, it seems a bit extreme for tehm to keep showing because the ball is in their court, not yours, to get to contract. How long have they had the contract without signing?
More to the point, how badly do you want the house? What is your sense of the vibe at the seller's end? I would think in this market, seller wouldn't want to upset the deal. You might try having your lawyer gently express displeasure in the first instance, and see whether you find the response satisfying. If you sense they are playing games, you could threaten to withdraw the contract if tehy don't stop.
Posted by: slopefarm at April 27, 2009 10:55 AM
A friend of mine just lost an apt in Park Slope b/c of this - they had signed the contract, sellers sat on it and had one more open house, took a higher offer. I was amazed, in this market, but it apparently still happens. Until seller signs, nothing is set and people have no sense of ethics anymore.
Posted by: WTbound at April 27, 2009 11:26 AM
I am confused by the question and the comments.
If both sides have signed, unless there is a provision in the contract preventing the seller from showing the house to others, they may do so for as long as they like. They may even sign another contract provided the closing in the new contract is conditional upon the termination of the first contract (i.e., it's a backup contract). However, the seller must still continue to act in good faith to close on the first contract signed.
If either the buyer or the seller have not signed the contract, there is no contract and the seller may show the property as they please. However, if you as a buyer have signed the contract, your lawyer should have sent the contract to the seller's attorney with the express condition that it be signed and returned within a limited period of time (e.g., 48 hrs), otherwise, you are just setting yourself up for a disappointment. If your lawyer has not done that, call him/her and get them to send another letter to the seller's attorney giving him a deadline by which the contract must be signed. If the deadline passes, and the seller does not sign the contract, you should rescind your offer.
Posted by: CuriousGeorge at April 27, 2009 12:00 PM
If the seller doesn't sign the contract its meaningless, put some pressure on the seller to sign or roll the dice that a higher offer wont come in, because if it does you might be SOL.
Posted by: Xander Crews at April 27, 2009 3:42 PM
If the buyer signs the contract, but the seller sits on it then takes another offer, didn't the buyer just lose money ? (attorney fee, mortgage application fee)
Is there a way to recover these fees ? It seems the buyer is vulnerable.
Posted by: Sam C at June 19, 2009 11:46 PM
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