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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.
Typical BS between two agents. I am aghast at this.
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.
Stop talking, sending Emails, anything with anyone other then your attorney. It is in the attorneys lap. Zip lip.
Negotiations in writing?
But, are "negotiations" whether verbal or written or email binding? Not here.
Only the agreement is binding, isn't it?
If I err in writing an offer, or telling my client that something is included and it is OK to go to contract, I cannot unilaterally claw the negotiated terms into the contract later, can I?
We palaver forever, and when it hits the page and is signed by all parties, that contract becomes the governing document for the transaction. Negotiation is just a step toward getting there.
I see some buyers who think they have the sellers' undivided attention because they are "negotiating." Nothing could be further from the truth, and signing off on negotiations would seem to muddy the waters.
All that said, I like email negotiations more than telephone, but the contract rules.
An example for you (let's say I represent the seller):
An offer is received and presented to the seller and we discuss it. The seller comes up with a counter to the offer.
I prepare the counter (easy enough to do with Docusign), get it signed by the seller, and send it to the buyer's agent. If their buyer accepts the counter, it's signed on a nice, clean contract and we move forward.
If the buyer wants to counter the counter, it's done in writing (again, easy enough to do with current technology) and sends the signed (via Docusign) counter to me to present to the seller.
Having, as I said, been bit by an agent who thought it was just fine to negotiate verbally and then not get the paperwork done, and having been advised by my broker and real estate attorneys here both with my broker and with the Texas Real Estate Commission that verbal is worth the paper it's printed on, I just don't do verbal negotiations any longer. Protects everybody, and most importantly protects my client's interests, which is what I'm supposed to do.
An example for you (let's say I represent the seller):
An offer is received and presented to the seller and we discuss it. The seller comes up with a counter to the offer.
I prepare the counter (easy enough to do with Docusign), get it signed by the seller, and send it to the buyer's agent. If their buyer accepts the counter, it's signed on a nice, clean contract and we move forward.
If the buyer wants to counter the counter, it's done in writing (again, easy enough to do with current technology) and sends the signed (via Docusign) counter to me to present to the seller.
Having, as I said, been bit by an agent who thought it was just fine to negotiate verbally and then not get the paperwork done, and having been advised by my broker and real estate attorneys here both with my broker and with the Texas Real Estate Commission that verbal is worth the paper it's printed on, I just don't do verbal negotiations any longer. Protects everybody, and most importantly protects my client's interests, which is what I'm supposed to do.
Interesting stuff. Always interesting how transactions differ between states, and between regions within states.
I guess some of the differences are found in the fact that we generally do not write or make "counteroffers."
Our negotiations are commonly conversational replies.
I.e., "Sellers' Response to Buyers' Offer."
Non-binding, and therefore somewhat meaningless. More or less a verbal notion put into writing. So generally it is impossible for an agent to burn another agent in a verbal situation.
Our process would be more along the lines of Mr. Buyer's Offer to Purchase is conveyed to the Seller.
If Seller signs it, it becomes the Contract.
If Seller proposes any alternate terms rather than sign, the Offer is rejected, and cannot be clawed back into the transaction.
Mr. Seller's agent calls or emails Mr. Buyer's agent and says, "Thank you for the offer. Mr. Seller is in agreement on giving up the refrigerator, offering the home warranty, at a sales price of $425,000. That is very reasonable, as you can see that comps easily support a price in the $430's.
Your client's offer is appreciated, and we can move ahead with a $425,000 price and the other terms agreeable."
(I do like email, as it makes it harder to misunderstand, but it is not binding between agents as we are not principals.)
Buyer may respond with a thank you, and acceptance, or another price, or walk away. Buyer is bound to nothing.
If accepted, Mr. Buyer's Agent will call or email the listing agent and say, "Mr. Buyer is in agreement at $425,000 and I will get the documents to you ASAP."
Still no binding contract.
So, Mr. SmartandAggressive Buyer's Agent jumps into DocuSign and provides a clean Offer to Purchase to Mr. Buyer, and then to Mr. Seller ASAP.
Since nothing is binding until the contract is signed and signature is communicate to Mr. Seller's agent, we move as quickly as possible to get that Offer sent over. We cannot assume that there are not nibbles from other buyers and their agents.
I see no advantage, IN NORTH CAROLINA, to generating ancillary documents with no material bearing in the transaction. Possibly they would protect me if I erred in carrying out my clients' instructions, but I don't see how they would provide any meaning or materiality between Buyer and Seller in the transaction.
If accepted, Mr. Buyer's Agent will call or email the listing agent and say, "Mr. Buyer is in agreement at $425,000 and I will get the documents to you ASAP."
Still no binding contract.
So, Mr. SmartandAggressive Buyer's Agent jumps into DocuSign and provides a clean Offer to Purchase to Mr. Buyer, and then to Mr. Seller ASAP.
Since nothing is binding until the contract is signed and signature is communicate to Mr. Seller's agent, we move as quickly as possible to get that Offer sent over. We cannot assume that there are not nibbles from other buyers and their agents.
I see no advantage, IN NORTH CAROLINA, to generating ancillary documents with no material bearing in the transaction. Possibly they would protect me if I erred in carrying out my clients' instructions, but I don't see how they would provide any meaning or materiality between Buyer and Seller in the transaction.
Mike like you most of us were taught that it all had to be in writing, signed, dated and delivered.
Lately the attorneys have been teaching that you could a have legal written acceptance by email notification. Most importantly, you could have a misunderstanding and lawsuit if you went back on the written email acceptance.
They've warned against saying "We have an agreement" put it more like "I believe / think we have an agreement but let me get in writing and get to my client."
An email acknowledgement of acceptance could be enforceable.
Mike like you most of us were taught that it all had to be in writing, signed, dated and delivered.
Lately the attorneys have been teaching that you could a have legal written acceptance by email notification. Most importantly, you could have a misunderstanding and lawsuit if you went back on the written email acceptance.
They've warned against saying "We have an agreement" put it more like "I believe / think we have an agreement but let me get in writing and get to my client."
An email acknowledgement of acceptance could be enforceable.
I get your point.
How would negotiations in writing and signed, or not, by the parties contribute to or avoid issues?
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