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.
My realtor hasn't returned my call on this but I'm nervous what this means.
Here is the timeline.
Currently in the attorney review period with a buyer (ends today). Lots of contingencies so I'm able to continue to show my house.
2 days ago, my realtor texts me that he has a verbal offer from a different buyer with no contingencies. I respond saying "Great! Funny how we had nothing for awhile but now have competing offers". My realtor advised me to consider it when it came since it was for $5k more and had no contingencies.
I didn't get a written offer from buyer #2 yesterday. Per her realtor, she was tied up in meetings and couldn't sign.
Meanwhile, out of nowhere, the original buyer asked to remove their contingencies, turn this into a cash offer, and close at $3k less than their offer due to "inspection issues". No report was shared. I countered and said that there was a new offer in the mix, but I'd consider a $1k credit if they waive any further inspection claims. I'd rather close now for cash then deal with a new inspection and financing, etc. Buyer #1's agent said they accepted the terms and would provide proof of funds and have their attorney confirm that all contingencies have been lifted.
Then this morning, mysterious buyer #2 finally sent over the offer to my agent, who forwarded it to me. But the buyer's agent said, "I hope your client honors their verbal acceptance". My realtor just sent it to me and said "don't worry about this". I of course called him immediately and only got voicemail.
So now, I have verbally accepted the revised terms from buyer #1, but I have another buyer who seems to feel they are in the same position. Am I legally bound to anything at this point?
Both parties are bound to a purchase agreement contract ... when both parties have signed and agreed to the agreement. Until then, it's only dialog and opinion.
This is as it should be. Can you imagine the quagmire created by multiple potential buyers who believe they have each "heard" something different via a 'second hand source' (Realtor)? Additionally, the written agreement often includes provisions that are different than what the buyer "heard."
Real estate contracts must be in writing or not valid.
BUT, if you have the first buyer who is now in attorney review and you do not have a written NON-acceptance, then you still have a valid contract with them. They have to reject it - non-verbally! It's obvious they do not want it, but you have nothing in writing to contradict the signatures you and they put on that piece of paper.
At this point, you should do nothing until you get in touch with your realtor. OR, hire your own attorney.
No, verbal agreements are not binding. However, I will say much of real estate is done verbally. There are many times when things are verbally countered and re-countered or accepted and things are put in emails, and it's just about getting the changes in writing on the revised contract/offer. I try really hard to believe another agent's word if they say my buyer's offer is accepted as long as the revisions are in within the hour or 30 minutes, or whatever time frame. As a listing agent, I've also had clients verbally accept an offer as long as it's executed within such and such time.
If all counters and negotiations were done in writing, that would take a lot of time. A phone call or email is so much quicker and email also give a chain of conversation history.
That said, you already have a buyer under contract in attorney review so you can't accept another contract as primary at this time. You can only accept it as a back up while you wait to see if buyer #1 is going to back out.
For the record, verbal contracts for the sale of real estate are perfectly valid & legal, at least in New Jersey. The difficulty is that they are often unenforceable.
That said, it seems to me that this particular question is for the attorney. According to the OP, they're in attorney review. They've already come to terms on a basic contract, had inspections, and are haggling over how to deal with issues raised in those inspections. That's a good bit different than having verbal offers from several buyers. The contract surely addresses this situation, and the contract is the domain of the attorney.
According to my attorney, we are fine. Just waiting for a letter from the buyers attorney that they are changing their offer to cash and the new negotiated price. The second offer is being allowed to simmer in case this falls through, but the attorney says that it's typical negotiating BS between the two agents and I have nothing to worry about.
I'll be happy to be done with this. I'm just not cut out for this gamesmanship and negotiating and crazy antics I've had to endure.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
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.
