Home Buying in Moreno Valley>Question Details

Ann, Home Buyer in Riverside, CA

last week I received a counteroffer on an REO property in CA which I verbally accepted but have not signed

Asked by Ann, Riverside, CA Sun Jun 29, 2008

anything yet. Can I back out without loosing my deposit?

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BEST ANSWER
Hi Ann,

I am pretty sure you can since you are in the preliminary stages of the sale and you have not really signed the papers from the bank. You have between 14-17 days to do your due diligence and I don't think you have used up all that time. Please use the same agent on your next purchase because I am sure he/she worked hard for you.
Good Luck,
Laarni
La
1 vote Thank Flag Link Sun Jun 29, 2008
Ann,

This is really a question for the realtor who is representing you in the transaction. My gut says that you can back out since you the offer was never signed but I don't work in your state and can't be sure. I hope that helps.

Cameron Piper
Web Reference: http://www.campiper.com
2 votes Thank Flag Link Sun Jun 29, 2008
You may need to seek legal counsel, however any attorney will most like say that a verbal agreement is worth the paper it is written on. Banks/lenders are notorious for verbal offers and acceptance. In my humble opinion listing agents should push harder to get signatures quicker. If you want out I would tell your agent to put it in writing immediately and send to the lender that you are rescinding your offer.
1 vote Thank Flag Link Mon Jun 30, 2008
Hi Ann,

I just read your other notes. If the counter was also verbal then only written CA RPA rules. It is writing and you are obligated to perform the terms of that agreement. But you are entitle to inspection if you are within the 17 days you could for any reasons back off and get your deposit back. If you have not remove your contingencies.

Let me know if I am missing anything! Talk to your agent she could explain.

Sincerely,

Homa
Broker Associates
Prudential California Realty
1 vote Thank Flag Link Mon Jun 30, 2008
Hi Ann,

Verbal acceptance means nothing. If you have signed the counteroffer and deleived it than you would have been obligated to perform. If you have signed and delievered and changed your mind then you probably would have lost your deposit . Since the BALL is in your court and you have not pass it the game is over! But to be sure you may contact legal advise form an attorney!

Sincerely,

Homa
Broker Associate
Prudential California Realty
Mission Viejo
1 vote Thank Flag Link Mon Jun 30, 2008
Hi Ann,

In order to document your action, it will be better for you and your husband to write a letter and fax it to your agent stating that you are rescinding the offer and thank them for their timely response and have your agent notify the bank's agent so you will not burn any bridges and you will not loose your deposit as well. It is wise to do it this early than wait until you've exhausted your days to lift your contingencies.

And all the best to you,
Laarni
1 vote Thank Flag Link Mon Jun 30, 2008
I'm not sure about CA, but in Texas everything must be in writing to be legal. My take is if both sides have not signed, then you do not have an executed contract. You should check with a local attorney to be sure. I hope this helps. Also, did you have an option period? If you did and gave an option money check, you may be able to back out anyway without losing your earnest money, but would lose the option money. Again seek legal advice if you are not sure. An agent can only give you advice, but should be able to guide you. If you are not certain, definitely seek legal advice, it's better than the alternative...
1 vote Thank Flag Link Sun Jun 29, 2008
Thanks everyone for your thoughts. Yes, the original offer was made using CA RPA forms and we received a verbal counteroffer 1 week ago which we accepted via telephone.
The problem is yesterday, my husband and I stopped in the model homes of a builder less than 1/2 mile from the property only to learn that their standing inventory of at least 13 comparable homes had liens and the sales office was closing within the next few days.
While we were prepared to stomach the risk of further devaluation from individual REO's in our new neighborhood, the news seems devastating to this small enclave of larger upscale homes.
Had we known this information we would not have agreed to pay as much as we did. Even if we have to give up the deposit, I think it would be best.
Just heard from the banks realtor tonight that they have the counter offer paperwork ready to send over to us. Does my realtor have to file a special form to rescind the offer?
0 votes Thank Flag Link Sun Jun 29, 2008
Joshua,

Like you, I take this job seriously and over here, even REO offers are written on California RPA form and like she specifically said, she has not signed the counter offer as yet. So where is the contract? The REO contract is not sent out by the bank unless the RPA and the Counter Offer are signed. Yes, location has everything to do with it since we have different ways to remedy problems like this before we talk about lawyers-- we have arbitration, mediation and good old-talking between agents to come up with an agreeable solution. And all of us who are giving our prudent advice are not involved in Anne's transaction that's why this is called a forum. Please remember that if you see my name in here, I will never ever stir anybody to do something wrong, unethical or illegal.
For Ann, check with your agent if I said the right thing. You are just a stone's throw away from me.
Thanks,
Laarni
0 votes Thank Flag Link Sun Jun 29, 2008
Laarni, you yell awfully quickly. Ann never said she was using a state form. She said she was responding to a bank's counter-offer on an REO. Those tend to stray from the standard state contracts.

Even if using a standard state form that would allow a 14-17 day inspection period that is a negotiation point between both principals and unless you've seen the specific contract that was signed or know the terms of the deal that was negotiated, you are assuming it is the same one with which you are familiar.

My location has nothing to do with anything - I never presumed to know what the contract said or what the terms were. I simply suggested she contact a lawyer and asked you how you were privy to the negotiated inspection period...

Sorry if I've offended you - I just don't think it was prudent advise to give unless you are directly involved in the situation and aware of the details.
0 votes Thank Flag Link Sun Jun 29, 2008
BECAUSE JOSHUA WE ARE IN CALIFORNIA AND YOU ARE NOT!. If you look at our Purchase Agreement form, that is the time allowed to buyers and sellers to cancel escrow without loosing your deposit. I will not advise anyone if I do not know what I am talking about....By the way, where is Spring Hill?
0 votes Thank Flag Link Sun Jun 29, 2008
Laarni - how do you know she has 14-17 days to do due diligence and that even if she DID, that she could back out of the deal during that time? Seems like risky advice to be giving to me...

Ann - the question you have can only really be answered by a real estate attorney.

-Josh
0 votes Thank Flag Link Sun Jun 29, 2008
That is a question for a real estate attorney. Contract Law and the interpretations of it are out of the range of expertise for Real Estate Agents (that would be practicing law without a license). While we can give our thoughts and opinions - you should absolutely consult an attorney for any contract questions.

If I can be of any further assistance, please don't hesitate to contact me at http://www.HernandoLuxuryHomes.com - I'm happy to help!

Thanks,

-Josh
0 votes Thank Flag Link Sun Jun 29, 2008
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