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Yeah, I'm sure it varies. In Illinois my lawyer told me they can't show the property or take offers.
Once they sell the property it will be public knowledge and the sale price, it's it's higher than what we agreed on we'll have our evidence to file actions against them.
If you have a lawyer, ask them what your recourse is, as it is going to depend on your contract and the practices in your area. However, in general, if the attorney review clause is mutual, and either side can use that contingency to withdraw, you probably won't have anywhere to take this. It does sound like it was an unfair situation, and I hope that you find another property to buy soon.
If you have a lawyer, ask them what your recourse is, as it is going to depend on your contract and the practices in your area. However, in general, if the attorney review clause is mutual, and either side can use that contingency to withdraw, you probably won't have anywhere to take this. It does sound like it was an unfair situation, and I hope that you find another property to buy soon.
Very good point! It may be obvious to others but since I am not familiar with the lawyer review period, it never occurred to me that the seller probably gets that benefit, too! I imagine it requires a written notice to the other party of their backing out within a prescribed period, though.
If there was a 'condition' in the contract that the offer was pending legal review by the sellers lawyer, they have every right to walk from the deal. Just like a buyer has a condition written in that the offer is pending home inspection/financing etc. and the buyer can walk if those conditions are not met.
ETA; that in our region, a lot of sellers will still show the home during a pending sale (with conditions yet to be lifted). There is no guarantee that a buyer will ask for $25,000 or something ridiculous after an inspection, and it would be wise (as a seller) to continue showing and marketing the home until all conditions are met.
I should also note, that it is extremely rare that a seller will include the provision 'legal review'. To me that isn't really a firm sale. If you have been looking for a property so long, and your area is a sellers market with competition from many buyers, your negotiation tactics should change. If you find the perfect home, you'd be better off negotiating closer to asking price.
This is fascinating. I've never heard of an "attorney review" that lets the seller out of the contract AFTER everything is signed. I've heard of buyers having a window to change their minds (like a timeshare and condos, I think), but the sellers?
I would read the contract over again VERY carefully. Then I would ask an attorney if it was legal. If it wasn't, and you love this house, I would pursue making them sell it. I don't think I would personally go all out just for spite (past reporting to various commissions), but if you really want this house, that's entirely different. If you had a valid contract and they illegally voided it, that's an issue.
Let us know what happens. I'm intrigued.
- Did a little googling. From what I see, the attorney review period does seem to apply to both parties. It sounds pretty crazy to me. I don't really understand the idea of agreeing to a contract, then having an attorney declare you did a bad job negotiating. Seems to me that should have happened before signing. But, that seems to be how they do it in Illinois.
I field those calls all day long and it's relatively easy to put a listing agent at ease without giving up confidential information. If your lender didn't provide a letter staying assets were in place, income and credit were verified, they were correct to walk away. If your lender is not doing everything they can to assist you winning the bid, you need to change lenders. There are many ways a lender can assist, without breaking the law.
This is an interesting local phenomenon. I show them until they are sold, or the seller wants no more showings. And, I write back up offers, or receive back up offers.
"Sold" is when the deed is recorded after settlement and funds are deposited in the attorney's trust account. All legal and ethical.
That is one thing I really enjoy about CD; the ability to learn about other regions and practices.
And, this is another illustration of how inadequate any inter-state discussion may be.
Ive heard of agents continuing to show a house after the contract is struck, but that is so that they have potential buyers in place in case the buyer's credit falls through. Its NOT intended on being a strategy for fishing the market for the best offer. That flies in the face of the principle of signing a contract; to lock in an offer. But this is Chicago......
We have a contract signed by both parties agreeing on price, terms of closing, and close date.
I can see why you are upset.
I think yes, see what you can do to them legally, while getting a different house yourself. I think they would renege on the $5K even if you forced them to close - see what an attorney can do to get you a settlement for not suing them.
It seems whether or not you can gig 'em depends on what lousy laws are in place. Some places clearly seem to have bizarre laws.
It is maddening. You can bet if YOU had tried to get out the contract, those kinds of low-lifes would be after you with daggers.
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