owner backs out of offer
Recently, a seller accepted my offer to buy an apartment. Everything was great until roughly 20 minutes later. The broker for the sellers called back to say there were now other offers higher than mine and the sellers were reconsidering. Do I have any recourse? The new offers came in 2 hours after the “best…
Recently, a seller accepted my offer to buy an apartment. Everything was great until roughly 20 minutes later. The broker for the sellers called back to say there were now other offers higher than mine and the sellers were reconsidering. Do I have any recourse? The new offers came in 2 hours after the “best and final” deadline passed. Was the acceptance of my offer a verbal contract? I doubt it, but have to ask if anyone has had a similar problem. Thanks.
8:17 and 1:48 Lawyer here. You are not really from NYC are you? If you were you would know that binders are not really in practice in NYC and ironically, Binders are not binding. They only show good faith and intent. Nothing more.
1:48am –
guess what — the usual practice in NYC is that after you have an accepted offer, buyer pays for an inspection BEFORE contract is signed, so that money spent is not covered in the contract, no matter how good your attorney is. That’s why it is ETHICALLY wrong to accept an offer and let a buyer pay for an inspection, then back out for a higher offer. It’s not illegal, as I said in my post already, but that doesn’t make it right. You sound pretty clueless when you write “the money spent s/h been covered in the contract as to who is responsible” since the contract hasn’t been signed yet. You clearly don’t realize that very few NYC house sellers will spend money to have a lawyer draw up a contract before an inspection is done these days. Maybe you can hold out for that when the bubble bursts, but good luck insisting on a signed contract before you spend any money for an inspection today. You sound more clueless than many responders here.
You all are a clueless lot.
To the OP and the rest, particularly the person who keeps asking for the broker to be named. For what purpose? To show how clueless you are?
Sleazy? This is NY not Kansas. Do any of you know where you have moved to? It ain’t heaven its hell. Get used to it.
Note certain things:
1) You must have heard this before: The broker works for the seller NOT the buyer.
So, the broker (the Seller’s agent) does not offer you a Binder Agreement upon the acceptance of your offer; also, he does not ask you to IMMEDIATELY tender a ‘deposit’; then, guess what? It’s a serious hint that while the Seller, allegedly, has accepted your offer, either the broker and/or the seller wish to continue to market the property—while your offer sits.
Until you get a signed (by the Seller) Binder, then the only thing that’s real is that your offer has not been rejected.
If you believe your offer has been accepted and the seller’s agent (the broker) has NOT asked you to sign a binder—then get thee to your attorney asap and have him messenger (the best way) or FEDEX a binder and check to the seller’s attorney—-ahhhhh, you did get the name/address/number of the seller’s attorney right?
@steve
Most verbal agreements are NOT binding, as most verbal agreements do not contain the elements which make them ‘contracts’. The reason for this is that most people do not comprehend what makes a contract, consequently most verbal agreements are not such. Go to court you’ll find this out, crap watch a few episodes of Judge Judy and you’ll get it.
That said, even verbal agreements that do contain the proper elements and circumstances must be admitted by BOTH parties. Either party can deny anything at any point, in court. Then the opposite party must prove the agreement, which is most cases is not possible—even with witnesses.
Steve is, generally, correct that most verbal agreements are limited in varying degrees, by type, monetary value, and circumstance.
In the case of the OP, even with witnesses, it is HIGHLY unlikely that any NYC judge would find such a verbal agreement to be valid and binding. Highly unlikely. Generally, because the basics above, and more realistically because, if they were to allow such, courts would be tied up all day and night every day of the year with every tom, dick, and jane claiming some sort of verbal agreement (real and unreal). Most judges would simply throw the case out–not hearing it.
@12:53
Oh, and there’s nothing wrong with backing out as it were even if money has been spent. The money spent s/h been covered in the contract as to who is responsible in the event. If not then it’s your or your attorney’s fault.
Buying a house may be personal, Selling a house is simply business. As a buyer you should look at it that way until you own it. Always be ready to walk away from ANY deal concerning money.
Oh, and know this, no matter a buyer or seller, the real goal is to get the opposite’s signature on a binder—-then the real negotiation can begin. “I agreed to what?” “I don’t care here is my offer.” “Hey, you can take it or we can argue.” “We can even go to court, if you want.” “But, understand if you don’t take my offer you’re going to have to have the pockets fund an attorney AND sit on your house for the duration.” “It’ll be cheaper to take my offer” “What, you’re going to walk away?” “But, I have a Binder!” :))
It’s not personal, it’s business. NYC is the business capital of the world. Sharks swim in these waters. Guppies need to stay in Kansas with Toto and Dorothy. Sheesh, you all are a clueless lot.
I have to say, I usually think it’s sleazy to accept an offer and keep negotiating with other parties while the contract is being worked on. However, in this case, the entire time of the verbal offer was 20 minutes, so I’m not as sympathetic. In NYC either party can back out until the contract is signed. Backing out late, after money has been spent for inspections, etc., is wrong, but 20 minutes — that really doesn’t seem so bad.
You say you want to do something about it – what? Give it up. Better you found out early rather than later in the process. You weren’t bound by your verbal offer (and wouldn’t want to be if you’d suddenly found a place you liked better, or decided not to move), and they weren’t bound either. Yes, this process is not the best way to do it, but it is how it is done here, so accept that and move on. You will find a better place – that’s how this always works out.
ms0426, you say you want to do something about it, why won’t you name the broker and the firm they work for?
I think there are some decisions in New York that a buyer can recover damages for breaking a verbal agreement to sell, but the damages are basically limited to costs and possibly other opportunity issues — I don’t think you can enforce a real estate purchase agreement itself without a written contract. There might also be a tort claim against the real estate agent for interfering with your agreement if they were involved in continuing to solicit bids after the verbal agreement, but the problem is in proving what damages flowed as a consequence. Arguably, you might even have a claim against the other bidders if they should have known that the seller had already accepted your offer.
All this is a long way of saying that you might win a legal action, but just get nominal damages. I don’t think you could ever recover pain/suffering/emotional distress, but consult a lawyer if you really want to talk about it.
OTOH, a signed contract should be binding, regardless of whether the downpayment was ever cashed unless the contract itself provides otherwise.
This (the original post)has the stink of Aguayo & Huebener written all over it.
IIRC, most verbal agreements are binding so long as you can prove them. But agreements to sell real estate or tangible property worth more than $500 have to be in writing.
I’m not sure if it would have helped but even a scrawled letter of intent signed by the seller might have been all you needed to lock it in.