Trouble getting copy of signed purchase contract from seller (contingencies, documents, agent)
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We put an offer in on a bank owned foreclosure. There were multiple offer's on the property and we were the highest bidder. We signed the bank's purchase contract and sent it to the bank for their signature.
According to the bank's real estate agent, the bank has signed the purchase contract and we apparently have an executed deal. The problem is the bank has not sent us a copy of the fully signed purchase contract as we requested and it has been almost a week. We are concerned because we have no written proof of when the contract was executed. The seller's agent claims it was executed/signed early last week which means we are already well into the contingency period.
This sounds really disreputable to me. If the contract is truly signed it should be simple to fax the signature page to us. Is the bank playing games with us or is this typical for a bank as our own agent claims? We are approaching deadlines for contingencies and need some answers-- what else can we do to get the signed contract in our hands?
In Texas, a contract is not fully and completely executed and ratified until the final contract has been "delivered" to the other party. If you have not received anything, your contingency period has not begun. You need to receive something first.
Ugh that's frustrating. We had problems getting the executed contract from the bank also when we purchased a foreclosure. Maybe it wasn't really problems, but it just took the bank FOREVER to sign them. And we had to have the documents signed multiple times because they kept signing the wrong forms. It took maybe two weeks to get a fully executed contract.
But it's weird that the seller's agent says it was signed by the bank but can't fax it to you. Your lender especially needs the executed contract as well. Ask your agent to find out from the selling agent why he can't fax it to you if he supposedly has it signed?
It sure is frustrating. We already have done the inspection which was expensive and have invested lots of time and effort. The seller's agent swears we have a contract in place and that it is executed but the bank has not even requested the earnest deposit from us.
In fairness the seller's agent has already completed termite and septic inspections on her dime and the listing was changed to "sale pending" so maybe she is telling the truth, but I sure as heck want to see the signed contract to protect myself. Either the bank has something up their sleeve or they are incompetent. I hope it is the latter.
If the agent swears you have a contract, then she should be able to show it to you. Is she just taking the word of the bank representative? This is a very strange situation. Do you have your own agent? Your agent should be working to resolve this issue. You could also try talking to the listing agent's broker.
We find it strange too. The seller agent claims she has sold lots of properties for the bank and that she is sure we are under contract. We had our agent request the signed copy several times. Our agent says this is typical of a REO and that there is not much she or the listing agent can do to speed up the bank's process. Regardless we feel it is in our best interest to see the signed contract and be crystal clear regarding the timeline so that the process goes smoothly and does not turn nasty.
You might be waiting a while depending on the bank. I think the longest it took me to get a signed copy was a month. We all moved forward while we waited for signatures. That is typically how it is done in my area. We have the verbal execution and move forward while the document gets signed. Based on my experience it is very typical of a bank to take a long time to get you the signed documents back.
I agree this is very common with a bank seller. In my state, we have to, by law, deposit earnest money within 24 hours of a contract being signed. The problem is that when we finally do get the bank signed offer back on 6-7-10, we find that it was signed on 5-21-10, and we are in violation of state law for the transaction. It is a very common thing, and really a pain.
That doesn't help you though. The only way to prove that you are in a contract is with a contract in hand signed by all parties. Until they provide that to you, they could still change their minds. Unfortunately, it is part of the process when buying a short sale or bank owned.
I know that most of the bank offers I have seen have a section specifically talking about what actual DATE the contingency period starts and how long it is. Check for something like that.
I sold 2 bank owned homes this year and had 2 other ones under contract. Signed copies from bank never came in until well after the "verbal" once they give the 15 + pg addendum for the buyers to sign it took 3-10 days for signed copies of all the stuff. We have verbiage we use and put into all bank owned property offers addressing the earnest $ thing to avoid violations with the state.
I had other agents tell me such and such place is under contract when they called listing agents to show (i was the one with the buyer) after this happened a few times I became less focused on the logistics of banks selling and more focused on the properties themselves - focus on the property you will get the deal done! Focus on the bank owned seller and it probably won't happen cause they always frustrate the buyer - buyers that move beyond this get the house, the others most likely give up and request earnest $ back (if it was ever supplied).
You might be waiting a while depending on the bank. I think the longest it took me to get a signed copy was a month. We all moved forward while we waited for signatures. That is typically how it is done in my area. We have the verbal execution and move forward while the document gets signed. Based on my experience it is very typical of a bank to take a long time to get you the signed documents back.
I agree with this when a verbal statement from the bank has been given. But if the listing agent swears they have an executed signed contract as the OP stated, then they should be able to produce it. Perhaps the listing agent is not being clear, and there is only a verbal commitment waiting for signature.
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