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.
Gosh, you people on this forum are a clueless lot. Accepted? Exactly how was the acceptance made? In writing?
Simple question to the OP:
Did the broker have you sign a Binder? Did you tender a deposit (which is not a down payment)?
If yes to both question, then take the Binder agreement to your lawyer. Which you should have done anyway. The Binder should contain the basic points of agreement for the sale, namely the price. A Binder is Binding.
If not to one or both, make a new offer if you can afford it.
Also, just a point of advice, as someone already suggested—find a lawyer BEFORE your find your a home to purchase. Finding a good and correct lawyer is just as important as finding the right house. Once you find a house, as you have fount out, it can be prudent to move QUICKLY! Having an attorney on the ready can facilitate this. Specifically, in regard to getting a contract to the Seller (normally a Seller initially draws up the contract, but the Buyer can do so.) Get a lawyer have him explain the process of a sale.
This NY not Kansas! The rules and pace are different.
Caveat emptor
Are there any circumstances when verbal agreements are binding?
Well, some people, even if they know that the verbal acceptance isn’t binding, just won’t screw around with you. I wouldn’t when I was selling – I had a hot place and could have done the act-like-its-an-endless-auction-and-keep-seeking-and-accepting-offers thing, but I didn’t, because I wouldn’t want buyers who screwed around with me, so I didn’t screw around with buyers. (It isn’t like that second verbal offer was binding on the buyer anyway.)
I did a FSBO on my house in 1999. The house was a wreck but the price was so attractive I made a verbal offer on the spot and the seller accepted it. I didn’t find out until minutes after the closing many months later that the seller had gotten an offer from another family on the block that was $60k over mine but he turned it down because he thought that verbal acceptance was legally binding on him. His lawyer didn’t learn about it until then either. He stared at his client blankly then turned to me and asked what numbers I was playing in Lotto that night.
If you think that’s bad, for my house, I gave the seller a big down payment check, which he didn’t cash for two weeks. They stonewalled me, then finally the broker said “He (the seller) is working on a better offer.” I threw up my hands and just said take it or leave it. On principal, I wanted to walk away, but just stuck it out, and his other “offer” fell through. See–you can even sign a contract, but until the seller deposits your first check, not even that is binding.
In this market, there’s always the chance the new buyer could flub his mortgage. You can’t get emotional about these things. Easier said than done!
thanks for the comments. I think I just generally feel burned and wish I could do something about it -or hoping I could do something about it. Most people I’ve told the story to including those who have bought property were surprised. they didn’t need to give us the acceptance as quickly as they did if they were really wanting or hoping for more – we didn’t lowball (offered asking). It’s probably best to stay away. it’s just too bad because we liked the property.
thanks again
I totally agree with slopefarm’s last paragraph. I wouldn’t deal with them anymore – no matter how much I liked the apartment – because I don’t like dealing with people who deal like that. Once they do that, you can never trust them to act well again. I wouldn’t want to spend money (on attorney, inspector, etc.) knowing they might pull the same thing – higher offer – before the contract was signed.
It is weird here – because verbal offers and acceptances can both be revoked at any time in the weeks it takes to get to contract, we are more dependent on people – both buyers and sellers – actually acting well throughout the process – even moreso, I think, than in places where bids are accompanied by documents and some exchange of money. So (when buying and selling my apartment) if the other party didn’t do what is generally expected in the situation, I walked.
OP,
Unless you either absolutely love the place or your offer was a bit lowball to begin with, you might consider standing on your current offer and taking the chance on losing the place. If the seller (and there had to be seller’s consent or instructions to accept an offer) is willing to be less than true to his/her word, then who’s to say the existence of the other offer is fully legit. You might just find that yours ends up being the best offer after all. Even if there is really another offer, it may have resulted from the same slimeball tactics, and buyer’s remorse may set in.
You already know your are dealing with slime here, so why pay a premium for the pleasure? If they are willing to jerk you around here, they will jerk you again and again all the way through closing, especially if you show your willingness to go along with it at the outset. But if you go through with it, get yourself an aggressive lawyer.
Dear 4:51- who are you arguing with (and why?) I wrote that it’s NOT illegal.
Why don’t you go shout at a wall, or count to 10 or something?