Home Buying in Vista Park>Question Details

Tony Nguyen, Home Buyer in Orlando, FL

can seller sign a second contract on a same property?

Asked by Tony Nguyen, Orlando, FL Thu Jul 3, 2008

I signed a contract with a seller to purchase a house. Days later, the same seller and his agent accepted and signed another contract with another person (higher offer). Is it ethical? Is it illegal? What are my options?

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I have founfd out the hardway that yes they can under certain circumstances. Fot instance an agency to rent the home and an agency to sell the home. This just happened to me recently, though it does not sound legal it just maybe. I just found the effort to pursue it was not worth my time. You don't need clients who do those games.
0 votes Thank Flag Link Fri Jul 4, 2008
You haven't told us whether the seller signed your contract and whether it was fully executed. Have you discussed this with your agent? Provide more information and I will try to answer but it sounds like you need to talk to an attorney and your agent first.
0 votes Thank Flag Link Fri Jul 4, 2008
Tony,

As you have explained the situation it sounds like the seller posted the property as "Back ups needed" once your contract was in place. If this is the case it is a normal real estate procedure that would put the second buyer in place to purchase the property if your deal fell apart. Typically, these offers are slightly higher. Your coucern should be to make sure all contingencies are met and deadlines are adhered to.

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Fri Jul 4, 2008
Well, it sounds that a backup situation arising here and if so even though signed by all parties, this contract won't be executable nor valid but until the other offer accepted earlier is cancelled. You can't sell the house twice and can't have 2 escrows open similtaneously otherwise property won't close escrow.
0 votes Thank Flag Link Fri Jul 4, 2008
Did the seller sign your offer? You may have signed however if the seller did not it is not an executed offer.
http://www.lynn911.com
0 votes Thank Flag Link Fri Jul 4, 2008
First, his agent did not accept any offer. She is obligated to present all offers and let the seller do what they will. (generally we recommend they talk with an attorney first). Maybe the second contract is a back up and that is specified in the contract (which means if you ask for one little thing, they will kick you out so fast it's not funny).

Anyway, READ the contract - have your agent and their broker do the same. Unless there is non-standard language in the contract, the problem will not be that he accepted 2 offers, it will be that he only has one house to sell. He can't possibly make good on both. If he breaches the contract, you could potentially sue for damages. Here again - us agents, we cop out and ask you to speak with an attorney.

As far as ethical - well, do you mean professional ethics for agents? Yes, the agent did her job. Do you mean SHOULD a nice seller do that, especially without getting you on the same page _ NO.
0 votes Thank Flag Link Thu Jul 3, 2008
Hi,
The first thing that comes to mind is that your contract contained some type of kick out clause. I don't know that to be the case or not. Did you have a sale contingency as part of your offer to purchase?

Deborah
0 votes Thank Flag Link Thu Jul 3, 2008
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Wow, so many questions come to mind. Is this a short sale? What type of contract did you sign? Is it a Far, FarBar or some in house contract? Did it have a kick out clause because of financing or some other terms? Do you have an agent on your side? Call me on the 4th I will be available to help answer if you have no agent and give you some thoughts.

Dave Lowe
Broker / e-PRO
407-330-0060
Web Reference: http://Two4OneofOrlando.com
0 votes Thank Flag Link Thu Jul 3, 2008
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