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Hi - I have a legal question to those in NJ regarding a recent experience I had in trying to purchase a home in NJ.
I made an offer on a single family home last Sunday knowing the sellers just accepted an offer with another buyer. My understanding is the offer was under attorney review when my offer came in so I tried breaking the existing deal by offering a purchase price significantly above what was currently on the table.
In doing so, I succeeded in getting the sellers to accept my offer and they subsequently signed off on my contract this past Wednesday only to find out the first contract with original buyers was never cancelled out. I have documented emails showing the agent and seller having 2 fully executed contracts for the same property at the same time.
And this is where things get messy-
After speaking with my attorney yesterday, he sends out an email to the seller attorney acknowledging receipt of my contract and his disapproval with the terms. He mentions in the email that a formal rider will be forthcoming on Monday. Interestingly enough, I receive a call from the sellers agent (I'm a licensed real estate agent representing myself) accusing me of stalling. Ultimately we get into a heated argument and tells me she's going to kill my offer with the sellers. Low and behold I receive an email from my attorney 1 hour later stating the property just concluded attorney review and ours would be back up. There where only 2 offers on this property and I have a documented email from the seller agent stating: 1. Previous contract was cancelled 2. Seller attorney didn't kill the contract with previous buyer until they heard from my lawyer first.
My question to everyone... Is this legal in the state of NJ to enter into AR with 2 fully executed contracts for 2 different buyers at the same time?
My question to everyone... Is this legal in the state of NJ to enter into AR with 2 fully executed contracts for 2 different buyers at the same time?
A contract isnt fully executed until you are out of attorney review. Sounds like you never got your contract fully executed. Might as well keep looking. But honestly, this is a question for your lawyer. If you don't trust your lawyer, you may want to consult another.
I"m no attorney but have been forced to study some contract basics for my job and a contract needs offer, acceptance and consideration (that's a fancy word for money) to be complete.
Doesn't seem like you had all those elements, so not sure your terminology of "fully executed" is correct.
But it makes no sense that you wouldn't just ask your attorney and trust what they say. Maybe you don't understand what s/he is telling you and are embarrassed to ask for clarification? It's their job to make sure you understand what is going on here.
I'm curious about the power that seller's agent has to "kill" your deal that appears to have already been in play. Have you contacted her supervising broker?
I"m no attorney but have been forced to study some contract basics for my job and a contract needs offer, acceptance and consideration (that's a fancy word for money) to be complete.
Professor Charles W. Kingsfield, Jr. ("The Paper Chase") would be proud.
I contacted the broker and they are investigating. When I say fully executed, both buyer and seller signatures are on the contract.
I do trust my attorney and wanted other opinions since it's weekend and attorneys are closed. This way I can have a more informed conversation on Monday.
I contacted the broker and they are investigating. When I say fully executed, both buyer and seller signatures are on the contract.
I do trust my attorney and wanted other opinions since it's weekend and attorneys are closed. This way I can have a more informed conversation on Monday.
Yea so that doesnt mean you are under contract. You have to exit attorney review first and in NJ during attorney review any party can walk away for any reason they wish. Thats why its so important to get out of attorney review quickly.
Not an lawyer here, but it seems to me your contract isn't valid unless they cancelled the first one with the other party. An email saying they did so doesn't mean they really did it. A seller has to be able to sell it to you for it to be valid. If they are in a contract with someone else then they are not able to do so.
To me this just sounds like really sloppy work on the part of the selling agent. You do not handle getting back up offers in this way.
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