Home Buying in Troy>Question Details

Bannrick, Home Buyer in Las Vegas, Las Vegas,...

More information on "offer cannot be submitted until the other buyer signs he does not want the property?"

Asked by Bannrick, Las Vegas, Las Vegas, NV Tue May 10, 2011

The buyers offer fell through on 3 different banks and they given a 30 day extension, then given an additional week, which we were told expired 5:00p.m. Monday, per our realtor (who is the listing agent) and the banks asset manager. The issue with the buyer signing off before our offer could be presented was not mentioned, only his time had expired and they were killing the deal. Is this usual, when that many extensions have been given?

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Derek Bauer’s answer
Again ... just because a closing date comes and goes does NOT mean a contract is invalid. It is sad to see so many agents telling you this.

**This is not legal advice, and you should seek legal advice and counsel only from a licensed law professional. I can not and do not provide legal advice.
0 votes Thank Flag Link Thu May 12, 2011
Bannrick,

Is your offer past the expiration date for the acceptance? If yes, your offer is no longer valid. Did you sign an buyers contract & an agency disclosure? If you did not sign a buyers contract then you are free to go with another agent.

I would count it a priviledge to interview with you so see how well we would work together.

You can check out my recommendations on one of my websites & also check out my linkedin profile

http://www.linkedin.com/in/sigridgarrick

I wish you the best!
Sigrid Garrick
Web Reference: http://www.SigridGarick.Com
0 votes Thank Flag Link Wed May 11, 2011
"Bannrick,"

I would like to meet with you and explain how a true expert can be an advocate for you, protect your interests, and make the process convenient and less cumbersome. You may use the link below to a short video so you can get a glimpse of how I handle buyer representation.

If you would like to schedule an in-person or phone conversation with me, please email me at Derek@DoorToDreams.com or call my office at 248.419.3146. My assistant will likely answer and can then get something on my calendar.

Hope to speak and/or meet with you soon. Thank you in advance.

Derek Bauer, Associate Broker
Real Estate One
0 votes Thank Flag Link Wed May 11, 2011
We apparently don't have a dual agent. You were very clear in your explanation of what is and isn't a dual agent, thank you. I'm baffled with the situation on the previous buyer as well, it's a jumbo loan. Maybe they think he/she can scrape the funds together somehow. If the buyer signed the same contract we did, it clearly says both buyer and seller agree to terminate the contract if financing cannot be obtained. It says nothing of a release form. From what we know, the previous buyer has their own agent and their offer was written with our agent (the seller agent).
Our agent told us the offer we made cannot be presented until the other buyer signs the release form. We wouldn't have made the offer if we knew about the need for a release form. What if it isn't signed?
Apparently the buyers agent isn't giving any information either. I'd rather look at other properties instead of being tied up in this waiting game. We made a cash offer, not the full asking price, but good after looking at comps on similar properties in the area (that were not bank owned) and the house has some issues with the roof, etc. We just don't know if we should wait or move on. Any suggestions?
0 votes Thank Flag Link Wed May 11, 2011
I'll chime-in again as I did on your post yesterday...

This is a textbook case of why buyer's should have a buyer's agent. I'm not saying that to be flippant, rather you are VERY LIKELY working with someone who solely is looking out for the best interests of the bank. Many people throw around the term (both in-general and in this post), "dual agency," when in-fact it is highly unlikely that there is dual agency in this case. Just because 1 agent is controlling 2 sides does not make it a dual agency ... and controlling 2 sides does not mean an agent is trying to control the best interests of each individual.

Here is an interesting question ... was the offer that this agent seems to be working so hard to protect also written by him/her??

In order for true, "dual agency," to exist, an agent must have a prior and binding relationship with each party. Thus, the agent had a listing in-place with a seller, and a buyer agency in-place with a buyer, ALL PRIOR to the two coming together. Thus, if you met this agent AS A RESULT OF THIS LISTING IN QUESTION, dual agency by definition and license law in Michigan can not exist.

Now that is all great and wonderful, right, so what now?

It is hard to believe that a bank would allow a buyer to burn through THREE lenders who have all said no, yet they continue to wait. Regardless of the premium they may be willing to pay ... if they can't pay it ... who cares!

Your offer CAN and SHOULD be presented even though there is a pending transaction ... it just CAN'T be accepted until there is either a.) a release on the other contract, or b.) your offer is written contingent upon that other contract being released.

Hopefully I haven't completely confused you ... but hopefully you now see that the person you reference as, "our realtor," may just well be, "their realtor who is trying to juggle your paperwork." Buyers should always have their dedicated agent.

Again, best to you and hope it works out.
0 votes Thank Flag Link Wed May 11, 2011
My recommendation to Bannrick is to be sure you know how you are represented and wait until the previous Buyer has submitted something in writing to the bank.

If the agent is representing both Buyer and Seller of the transaction she should be a dual agent and does not have a fiduciary to either party. Make sure you understand that. The agent at that point is pretty much only a transaction agent.

Good luck
0 votes Thank Flag Link Tue May 10, 2011
Ingrid, that is what we're wondering. Nothing was mentioned yesterday, other than the offer expired and the deal was getting killed. Today we found out they couldn't do anything until the buyer signed he was no longer pursuing the property. We were aware she was a dual agent. Thank you
0 votes Thank Flag Link Tue May 10, 2011
Jay, If the listing agent went to the trouble of writing up an offer for Bannrick, He needed to have agency disclosure signed as well. He may have or not signed a buyers contract. I think Bannrick knew his agent was a dual agent but is questioning why his offer isn't being submitted to the bank & why he didn't know that the preveous offer wasn't released yet. Is that true Bannrick?
0 votes Thank Flag Link Tue May 10, 2011
It is my understanding from the two posts by Bannrick on this situation that the listing agent wrote the offer. That agent has fiduciary duty to the bank--unless Bannrick also signed a buyer's agency agreement with the same agent, which would be the only way it could be a dual agency situation--which should have been disclosed up front to all parties when the offer was written.
Web Reference: http://MyRealtorJay.com
0 votes Thank Flag Link Tue May 10, 2011
All I can say is that it must be a good offer for the bank to wait so much. The bank is trying to get as much money as possible. They must think that the buyer is going to figure out the financing. I would think 3 times & you're out. Your agent is really a dual agent since he also represent the seller. Next time I would suggest that you use your own buyers agent & not the listing agent.. Your agent (also sellers agent) might not of known that they needed a release from the previous offer since it is past the expiration time for securing a mortgage.

It sounds like your offer will be presented after the release is received. They are just be extra careful not to be in a law suit. the broker might be asking for the release as well.

Hang in there. Your agent wants to sell this expecially since you mean double commission to Him
0 votes Thank Flag Link Tue May 10, 2011
Hi Bannick,

It seems that at the moment they still have a binding contract? And possibly an open escrow? The bank is simply making sure they are not contractually obligated to sell to two different buyers at the same time. It shouldn't take very long....hopefully....to get the signature.

Good luck with the purchase,

Karen
0 votes Thank Flag Link Tue May 10, 2011
It depends on the circumstances of each deal and how the asset mgmt company addresses the issue. As mentioned before, a prudent seller will want to be sure the prior deal is completely over before proceeding with another. There very well could be other back-up offers waiting as if it is desirous property. They could relist and start a whole new bidding process up again once the prior offer is terminated also. The bank will do what the bank wants to do, and you are playing by there rules. Bank purchases are another great case for buyer's agency to help guide you and protect your interest.
Web Reference: http://www.MyRealtorJay.com
0 votes Thank Flag Link Tue May 10, 2011
It is common for the asset manager to want a release signed by the buyer in the event of all purchase agreements that do not close, often teh bank will give back teh deposit for teh buyer signing off. So yes it is common... Most reo agents who had a deal fall through have been through this.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue May 10, 2011
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