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Naptown Home…, Home Buyer in Annapolis, MD

In MD, does Seller have to disclose a contingent offer with kick out clause generally, and specifically to other Buyers presenting offer?

Asked by Naptown Home Seller, Annapolis, MD Wed Apr 27, 2011

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0 votes Thank Flag Link Fri Jan 18, 2013
An OFFER does not turn into a CONTRACT until both buyer and seller have signed the same documents and agreed to all terms of the sale. A seller (or their agent) is NOT required to disclose the existence of other OFFERS to other buyers, although it is generally a good idea (to generate higher offers) and MAY be done if the seller gives permission to the listing agent (LA) to do so.

Once you are under contract, the LA must update the status of the property in the MLS and this change from "active" will alert other agents that it is under contract and whether or not there is a kickout clause. Non agents searching the various available websites that get their data from the MLS will not see that status change. The property will just not show as being active and will generally not show up in their search for properties.
0 votes Thank Flag Link Wed Apr 27, 2011
Darlene is correct. When you sign your listing, sometimes there is a place that asks the Seller if they want their agent to disclose offers to other agents. Most of the time, Sellers want this because it could start a bidding war and move the price up. If you did not sign anything allowing the agent to disclose an offer, then it is your call.

That being said, if there is an offer and you accept it (putting your home under contract with a contingency and a kick out), the agent will put it in the MLS as contingent with a kick out. The listing will no longer be active, and other possible buyers would have to search the listings under contract and contingent to find your listing. In this case, they already know you have a contract and that it is contingent with a kick out.
0 votes Thank Flag Link Wed Apr 27, 2011
As the Seller, when you're in the "receiving contracts" status, you do not have to disclose to anyone that you have any contracts in hand. For instance, I was receiving several contracts on a waterfront listing I had in Eastport. My client, who was an attorney, decided not to disclose to the potential buyers that we were in receipt of another contract. After a contract was accepted, the buyer who's contract was rejected was angry with me for not disclosing the existence of another contract. It is the Seller's decision, not the agent's, when and if something will be disclosed. There are different reasons why one would and would not want to disclose the existence of another contract.
0 votes Thank Flag Link Wed Apr 27, 2011
you were actually in receipt of several offers, not contracts...
Flag Fri Jan 18, 2013
Well very simple , yes , are you doing the process by your self? i you need help please feel free to have service from any of us , is free and safe, the differents coulbe some thousands dollars on sales prices , (seller pays commission ok ) have good one , bye
0 votes Thank Flag Link Wed Apr 27, 2011
I agree with Rachel but only in the event the offer has been ratified and you are under contract with that contingent offer. If the seller receives an offer that is Contingent on a home sale with a Kick-Out Clause and then receives another offer(s) prior to ratification, then you do not have to disclose any of the details (price, terms, etc) of the other offer only the fact that there is another offer in hand.
0 votes Thank Flag Link Wed Apr 27, 2011
Hi there!

Yes, sellers/listing agents are required to change the status of the listing to "CONTRACT/KICK OUT" when such an offer has been accepted. This notifies potential buyers that there IS an offer already on the table but also that the seller is continuing to market the property until the "contingency" is satisfied by the current buyer or expires. In the event another offer comes in without a contingency, the seller must give the buyer with the contingent contract an opportunity to waive their contingency & move forward with the purchase prior to accepting the non-contingent offer. In the event the contingent buyer cannot waive their contingency & move foward with the sale, the seller can then accept the non-contingent offer.

Best wishes!
Web Reference: http://www.rachel-best.com
0 votes Thank Flag Link Wed Apr 27, 2011
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