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MikeJaquish, we don't even know if the OP has/had a valid contract. My comment about attorney review was perhaps part of the tangent that spun out of this thread.
We have a contract signed by both parties agreeing on price, terms of closing, and close date.
We do as well in NJ. Realtor said she will continue to show house while it is in attorney review, I don't think, but could be wrong the contract isn't binding until after review, either party could back out during the 3 days of review. After that, she will continue to show, any offers would be back up offers in case buyers financing fell through.
We have a contract signed by both parties agreeing on price, terms of closing, and close date.
Exact same thing happened to friends buying a home in Wilmington, NC. Two weeks after the contract is signed, their home is packed up, they've paid for inspection... the seller delays closing because the home they are moving go is not ready. Then at the sellers want more money. Then they say they are just going to rent the house not sell.
They were told that though they could get an attorney, it would likely not be worthwhile. Three weeks later they found a home they love even more. Fingers crossed.
Sellers remorse. After the contract is signed, they believe they could get more and so back out.
This doesn't specifically address the "attorney review" as part of the process, but I would guess it happens in the states where closings are typically handled by attorneys.
There is a difference between the stipulation of attorney review and using attorneys for closing title. In my area it isn't common to have attorney approval but DOES use lawyers for closing and not title companies.
I imagine attorney review states have a clause in the initial contract that goes something like this...."this offer subject to attorney review and approval by both parties by such and such date. (eg. 7 days)
This doesn't specifically address the "attorney review" as part of the process, but I would guess it happens in the states where closings are typically handled by attorneys.
A title company is commonly used for closing in my state, Illinois. Standard multi -board contracts specify an Attorney Review period during which time either party may cancel. The Attorney Review period runs concurrent with the Home Inspection period.
The buyer and seller may agree to waive any and all contingencies, including Attorney Review.
There is a difference between the stipulation of attorney review and using attorneys for closing title. In my area it isn't common to have attorney approval but DOES use lawyers for closing and not title companies.
I imagine attorney review states have a clause in the initial contract that goes something like this...."this offer subject to attorney review and approval by both parties by such and such date. (eg. 7 days)
As someone in sales I'm just appalled at what's happened. We REALLY wanted this house, we're in Chicago and the market is extremely heavy on the demand side. Homes in the area we want to live aren't being listed longer than just a day or two before being taken off the market. This could set us back a whole year in finding a home because of the competitive market. We really got screwed here, we jumbled up our lives to make this happen and they pushed us in negotiations to agree to terms they demanded....now they're pulling this crap.
It costs me nothing to report this agent to associations, licensing agencies, and his employer for his behavior. If I did the same thing in my job I'd be fired instantly. I'll gladly take steps to ruin this guys career. Buying a home is important to people and you're messing with people's futures. This guy shouldn't be allowed to work in real estate again and I'll take whatever steps necessary to make that happen.
Quote:
Originally Posted by cdubs3201
So my wife and I found a home we liked and went through heavy negotiations with the seller's listing agent a little over a week ago. We found in the process they were extremely eager to close by July 1st, even to the point where they proposed to bring $5,000 to close if we agreed on July 1. We accepted the offer and SIGNED A CONTRACT on Friday evening.
On Monday this week their real estate attorney informs us immediately that they do not like the provisions of the contract and are uni-laterally voiding the contract. Their listing agent also contacts our agent and says that he's sorry but his clients (sellers) want him to relist the property. He never relists it. Our "guess" is that he continued to show the property over the weekend, while under contract, and took a higher offer. We've since sent a letter from our real estate attorney that we are under contract and asking to confirm that they have NOT received a higher bid from another buyer. It's been 24 hours with no response.
Other items to note that were very shady in this process:
1. The home was listed (illegally) as a 3 bedroom home, when really it is a 2 bedroom home. The third bedroom is in the basement, does not have a full window, and no closet.
I am sorry you found yourself in this position. I am also sorry that your friend/ agent did not make you aware that either party may cancel an executed contract during the Attorney Review period, as provided for in the contract you signed.
The seller can direct the listing agent to continue to show the property. Most buyers prefer not to waste their time to see properties under contract unless it's a hot property in a hot area. Most of the greater Chicago area market is relatively flat except at entry level price points. Just curious what area were you targeting?
As for bedroom counts, the Chicago area MLS deems any private room closed off from other living areas may be counted as a bedroom. Neither a window or closet is necessary to be considered a bedroom.
Upon entry to the MLS, a basement bedroom ( at least 50% below grade level) is entered as 2/1 in an instance where 1/3 bedrooms is located in the basement.
As these things go, most likely you will eventually find a house you like better than the one you lost.
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