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We recently had our offer for a house accepted by a seller. There is a clause in the contract that seems fairly common. It is Additional Financial Terms and Contingencies.
In Article A it states about the loan application, an authorization ordering an appraisal and a pre approval letter. We have done all of the following within the time frame listed. Now here is where it get tricky.
Although not stated in the contract on the listing the seller requests that we go through his lender (who is a business partner in this deal and we know this because they told us so) and also his title company. We did this. However the problem has now arisen that because it seems that with every offer we put a bid in on they wanted a pre approval letter from the listing agents lender or they would not accept the bid. Unfortunately because of this my credit score is below what we need it to be and our lender (not the sellers lender) can no longer fianance us. Through some quick thinking on my part we attempted to use one of those previous banks who ran our credit for pre approval and they can get us the loan.
Our agent was made aware of this on Sept 24. He advised us not to worry because the seller can not break the contract. We spoke to him on the afternoon of the 25th and we made him aware that we filled out teh paperwork to get the loan through another lender that will fianance us. Then on the evening of the 25th our agent calls me and wants me to sign a cancelation of contract form which I refuse to do because I don't think the seller can get out of the contract. He makes it seem almost as if we need to do this but I have refused to do so and unless I know for sure I can't get the loan I will not sign it.
Then after all of this I find out through a real estate agent that I work with that the seller put the house back on the market on the 24th and it is now temp off the market. Something fishy is definately going on here and the thing that gets me is the house on the new listing is listed for 6,000 dollars more than what the seller agreed to sell it to us for.
I sense something illegal going on here but the seller is also an agent so my guess is either there is a loophole or he thinks we are stupid (which we are not) I am educated but I am no lawyer but I didn't see anything in the contract other than the above article that allows him out of the contract especially now that the title company already deposited our EDM on the 23rd. There is nothing in the contract that states we need to be fiananced through teh bank which gave us our pre approval letter. Somebody please help me out.
I'm having trouble following you on this but are you working with a buyers agent ? If not find a really good one who can guide you and give you solid advice.
Sounds like a cop out but I really believe this is the best thing for you.
We're not using the sellers lender but they would not sign the agreement until we met with his lender which we did. Nowhere in the contract does it state that we need to use his lender (which I know is also illegal if it did) Our original lender can no longer finance us (the one who gave us the pre-approval letter) because our credit has been run so many times in the last two months that I am now below the minimum credit score for him to finance us. We did receive a pre approval from another lender who can finance us (because when he ran my score it was acceptable). We are also paying a 3/4 point higher interest rate but we're willing to do it because we want this house so bad.
We are suspecting that our agent is not looking out for our best interests because he is presuuring us to pull out of the deal. He told us 2 days ago the seller can not back out but now he wants us to even though we can get financed.
We're not using the sellers lender but they would not sign the agreement until we met with his lender which we did. Nowhere in the contract does it state that we need to use his lender (which I know is also illegal if it did) Our original lender can no longer finance us (the one who gave us the pre-approval letter) because our credit has been run so many times in the last two months that I am now below the minimum credit score for him to finance us. We did receive a pre approval from another lender who can finance us (because when he ran my score it was acceptable). We are also paying a 3/4 point higher interest rate but we're willing to do it because we want this house so bad.
We are suspecting that our agent is not looking out for our best interests because he is presuuring us to pull out of the deal. He told us 2 days ago the seller can not back out but now he wants us to even though we can get financed.
Well, this sure sounds complicated and I'm not too sure about this seller; kind of sketches me out, you know? Talk to your agent because thing is he doesn't get paid if the transaction doesn't close - so if I'm reading your post correctly that he's advising you to pull out there could be very good reasons why he's advising you to do so.
IMO I'd just sit down and have a heart to heart with him as to why he feels you should pull out. This seller and the whole situation just doesn't sound right IMO I know you love this house, but an agents responsibility is to make sure a buyer's 'dream house' doesn't turn into a nightmare, so just have a sit down with him and very clearly ask him "why is it that you feel it's in my best interest to pull out even though we can secure financing and we love this house"
Well, this sure sounds complicated and I'm not too sure about this seller; kind of sketches me out, you know? Talk to your agent because thing is he doesn't get paid if the transaction doesn't close - so if I'm reading your post correctly that he's advising you to pull out there could be very good reasons why he's advising you to do so.
IMO I'd just sit down and have a heart to heart with him as to why he feels you should pull out. This seller and the whole situation just doesn't sound right IMO I know you love this house, but an agents responsibility is to make sure a buyer's 'dream house' doesn't turn into a nightmare, so just have a sit down with him and very clearly ask him "why is it that you feel it's in my best interest to pull out even though we can secure financing and we love this house"
There is a reason we believe although may not be valid but our agent is friends with the seller. The seller is also an agent and we seem to feel there is some type of backroom deal between the two of them in which our agent will "be rewarded" for us backing out of the deal. There is a definite conflict of interest but all this is hard to prove but does not seem out of the realm of possibility.
He knows the contract and knew the seller can't back out but is not advising us to pull out. Unfortunately with market being what it is today and the way things in Las Vegas are going it's difficult to know who is telling the truth and who is really on your side.
If you are not comfortable with your agent's advice, you should speak to the agent's broker and explain your concerns. Hopefully the broker can sort it out for you.
There is a reason we believe although may not be valid but our agent is friends with the seller. The seller is also an agent and we seem to feel there is some type of backroom deal between the two of them in which our agent will "be rewarded" for us backing out of the deal. There is a definite conflict of interest but all this is hard to prove but does not seem out of the realm of possibility.
He knows the contract and knew the seller can't back out but is not advising us to pull out. Unfortunately with market being what it is today and the way things in Las Vegas are going it's difficult to know who is telling the truth and who is really on your side.
Then IMO I'd call, then go down and talk to the agents BIC (Broker in Charge) quickly and let them know all of your concerns. (call the office and tell them you need to speak to the BIC immediately). Being a BIC myself, that's exactly what I'd want a client to do if they felt something just wasn't right. Now, there might not be any 'conspiracy' but what's important is that 'you' feel confident. Maybe a meeting with the agent and 'his' BIC, with him explaining 'why' he now feels you should pull out will get things clarified and if there is any 'funny biz' no BIC worth their salt will let it slide - they'll take care of you themselves to get it done, then deal with their agent.
Thanks guys... we are going to talk to our agent first and find his reasons for wanting us to pull out, the next step is to find out where if anyplace there is a place for the seller to get out of the deal and 3rd find out how the seller while under contract with us was able to put the house back on the market and sell it within a day.... yes houses in Las Vegas are back to selling within a few days (just not for 3 times their value) Our agent does not know that we know that the house was relisted at a higher price and is now showing Temp off the market.
Thanks guys... we are going to talk to our agent first and find his reasons for wanting us to pull out, the next step is to find out where if anyplace there is a place for the seller to get out of the deal and 3rd find out how the seller while under contract with us was able to put the house back on the market and sell it within a day.... yes houses in Las Vegas are back to selling within a few days (just not for 3 times their value) Our agent does not know that we know that the house was relisted at a higher price and is now showing Temp off the market.
"Temp off the market" (TOM) does not necessarily mean that the home has been sold. This is a general catch all for temporarily taking it off market for a variety of reasons, such as doing some work on the property, or making other changes before going back active. They may also be waiting to sort out your situation.
The way you talk about "your" agent, also indicates a lack of trust. You really need to speak to his broker.
"Temp off the market" (TOM) does not necessarily mean that the home has been sold. This is a general catch all for temporarily taking it off market for a variety of reasons, such as doing some work on the property, or making other changes before going back active. They may also be waiting to sort out your situation.
The way you talk about "your" agent, also indicates a lack of trust. You really need to speak to his broker.
You're absolutely correct, rjrcm, that TOM can be for a variety of reasons - the curious thing here, at least to me, is that it was relisted at a higher price; not so much the status change to TOM, but the 'now' higher list price. Very curious indeed
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