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... By virtue of them describing a "7 day inspection period upon verbal accpetance" they are agreeing it is binding. This among many other examples of such language in the agreement. ...
Was this a Fannie Mae agreement? They do define in their addendum what is meant by Verbal Acceptance and the day the verbal acceptance begins. They require inspection to start from that date, usually before addendum is fully executed. However, until the buyer and the bank sign the addendum along with the original purchase contract, it is not enforceable. Would have been interesting to get the court's verdict on it.
there are systems in place, especially if it is an FHA foreclosure where everything is done via computer. They can be approved instantly via computer if the person in charge of that property is up and working. Once it's accepted, it is true that no other offers can be submitted against that property if it's being done via the system I'm speaking about.
What is incorrect, is if you were told it's been sold, but in actuality they were waiting on an offer, they had an OBLIGATION to take your offer in and submit it. That is an ethical and fidicuary responsibilty for which they can be fined.
I'm wondering...did your agent also have you fill out addendums? Generally (every time I've had to deal with this kind of thing) there were addendums from the bank/institution that had to be filled out and submitted at the same time. Has that been done? Has she asked if there are addendums? After acceptance and for additional ratification, there may be other addendums that need to be signed.
As for him not having the escrow deposit... I know from my experience, with agents that deal fairly and know what the hell they are doing, there is NO offer submitted without the escrow deposit in hand. What would be the point if the buyer doesn't pony up the escrow deposit? It's ok if it's a straight sale, but a bank owned via computer submission? No.
As for it still being active in the mls...that's a different matter entirely. There are different rules for different mls's. BUT, if the deal has been accepted, then it should go pending whether the escrow has been received or not. If the lender/agency accepted the deal knowing the escrow will not be received for, lets sale, 48 hrs, then it should be marked pending. If he didn't tell them he didn't have the escrow, then he's in another violation.
Sounds to me like there are either very incompetent or snakey people involved...take your pick. I would ask my agent what type of agency has the house and which system is he putting these offers into. If she doesn't know the information by now, I'd find another agent immediately. Your agent either isn't experienced in REO's or doesn't know how to counter act bad behavior. Find one that does.
In North Carolina, to contract to sell or convey land, they must be in writing to be enforceable.
NC General Statute 22-2
The objective being to prevent perjury, forgery, dishonest conduct, and manufactured and false testimony.
As always you're absolutely correct. I forgot to add that one word to my post - 'enforceable'. My bad, as that is what I intended but didn't add. Too busy I guess trying to pull things out of my old brain from when I took the general portion of my RE exam
Thanks again everyone. I contacted the listing agent’s broker and she offered a different explanation of what happened to the first offer. She said it went under contract as I was told (in an hour), but the seller then changed the terms and the buyer was unable to meet the new terms, so it became available again. My realtor and my partner were both told the buyer’s agent failed to produce the contract in a timely manner. I asked if she (broker) personally verified what she was told. (Awaiting response.) She said it went under contract again before I initiated my second attempt. I guess “initiated†is subject to interpretation because it was not under contract on Monday when my agent told the LA I was interested in placing an offer. My agent got me the information Monday afternoon, but I didn’t actually attempt to place my offer until Tuesday morning – at which time it was already “signed, sealed, and delivered.†I accept that this is possible, but feel it’s unlikely. The different stories add to my speculation. The broker did not address the fact that it supposedly went under contract Monday night/Tuesday morning and the LA still did not have a deposit as of Wednesday afternoon. But it’s been removed from the MLS entirely, not even marked pending. (The LA told my partner it was kept “active†awaiting the deposit.) As far as my buyer’s agent pursuing this, I’m not sure how much she wants to get involved. She told me she’s known the listing agent for years, has gone drinking with him, gone to seminars with him, etc. She may be reluctant to “step on toes†of a colleague. My agent emailed me this morning and said the LA received my offer, told the REO agent, and they rejected it because they had an accepted offer. She also said the offer is from the son of the man who lived there. She said it was a done deal and I shouldn’t pursue it any further. This is the first time I’ve ever used a buyer’s agent (I’ve always purchased through the LA as a dual agent) and I can’t say I found it beneficial. I’d be curious as to the experiences of others regarding using a buyer’s agent, as opposed to going to the listing agent – who has the incentive of receiving full commission.
You may want to hire a different one. I don't know how professional it is to tell clients "I go drinking with the other agents". It is true that once the bank accepts the offer verbally they don't take other offers. Ask your agent to submit some proof the offer was sent. Should be easy enough, the time the email/scan was sent, or the fax verification.
Does anyone know if the LA must provide proof that the other offer was accepted before mine? He sent me a message yesterday (via his broker) and admitted that my agent told him Monday (11/9) that she would be submitting an offer, but he had one in hand Monday evening and didn’t want to wait. When she called him Tuesday morning to tell him the offer was being prepared and would be there momentarily, he said it was too late. He said the seller accepted the other offer the same evening it was presented. This is possible, but I doubt it, particularly because it stayed active on the MLS for 2 more days. I’d like proof that the other offer was accepted 11/9, as he stated.
I asked the LA’s broker if she verified the dates/times and she didn’t acknowledge the question. She just said she expressed my concern to the LA.
The LA also had the nerve to say he didn’t understand why I was upset! I first tried to place this offer 11/2 - a full WEEK before it was supposedly accepted and it was refused (turns out the LA’s son refused my first offer).
Additionally, had I known Monday was the deadline, I would have made certain my offer was in. I feel he indicated he was allowing time for additional offers when he told my agent that he was expecting two offers Monday/Tuesday in addition to the first one he was waiting for (which turned out not to be true). He went so far as to tell her it would take a cash offer over list to get the property. I was originally going to offer full-list price, but my agent told me that wouldn’t get it and I would have to offer more – which I did – needlessly.
I’m just wondering if I am legally entitled to proof of when the other offer was accepted.
"...Stayed active on the MLS for two more days..." may be irrelevant.
The MLS rules may only dictate that the change in status be entered within 48-72 hours.
Where I am, 48 hours is the rule, and it is often delayed a little further.
That doesn't mean there is no contract. It just means that the MLS is not updated in a timely manner.
I would suggest you not let a 2 day lag in MLS status change distract you.
You can probably make the other agent prove the timeline of the proceedings in court.
Or, your agent can file a grievance with the MLS or Association of Realtors to attempt to see the documentation from the Listing agent.
And, you can pursue it to the ends of the earth, and you will not upset the other contract.
"...Stayed active on the MLS for two more days..." may be irrelevant.
The MLS rules may only dictate that the change in status be entered within 48-72 hours....
Mike is right, there is often delay between contract acceptance and MLS status updates. Also, the MLS may not be updated until they get the signed bank addendum executed depending on MLS rules. This happens all the time for my MLS.
I also agree that whatever you do, the other contract is now in force, and unlikely that you can override it. The best you can hope for is that the other buyer backs out for some reason.
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