Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We put in an offer on a short sale. There was an existing offer on the listing. The seller's ratified our contract even though we are the second buyers. The status of the listing is: CNTG/KO. There was nothing in our contract that referred to a KO.
The home is in Northern Virginia. Does anyone know what this means?
I've searched for it and got two different answers:
(1) "refers to a real estate contract contingency that's often used when a home buyer places a house under contract with the understanding that he must sell his current house before finalizing the new purchase.
Sellers holding a contract with a kick out clause continue to market the home. If they receive another offer the buyer has a specific amount of time as stipulated in the clause to remove the contingency and move forward to buy the house, whether his existing house is sold or not. If the buyer cannot move forward, the seller can back out of the original contract and sell to the new buyers."
(2) - "In many of the short sale properties, there is a very long lag time between offer and acceptance (or counter) and it isn't to the seller's advantage to take it off the market. Some agents are asking for right of first refusal offers so that other offers can come in while the waiting is occurring. If a second offer comes in with "better price or terms", the first offer is notified that there is another offer, they are shown the second offer (with identifying information blanked out) and asked if they wish to increase their offer within a specified timeframe (usually 72 hours). If buyer #1 doesn't want to up their offer, they are "kicked out" (withdraw) and buyer #2 goes into first place, and on an on, until the lender responds."
Sounds like answer #2 is the one that fits your situation. You should discuss with your agent if you're working with one. At the least, you can ask the listing agent for clarification. I would've expected language in your offer to indicate it was contingent on the first buyer backing out.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
