Home Buying in Colorado>Question Details

Sonny, Home Buyer in Denver, CO

Can a bank continue to accept offers on a home even after we put in an offer and deposit?

Asked by Sonny, Denver, CO Thu Apr 23, 2009

We made an offer on a home in CO. that a bank took back. they accepted offer but the contract from the bank states they can accept offers up to closing. is this legal? i thought once an offer and deposit was accepted, they could not accept offers. has this rule changed? thanks

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Hi Sonny,

when buying bank owned properties, sadly many of the banks have addendums which basically state ' they can cancel the contract at any time for any reason' but you are bound by the liquidated damages clause.

So, yes, most of them can accept other offers right up until closing and transfer of deed. It's one of the risks associated with buying bank owned real estate.
0 votes Thank Flag Link Thu Apr 23, 2009
If it was in writing and you signed then yes you agreed to it and they can exercise that option. I would assume.. that they would be seeking a possible back up contract in the even that you fell through they would have somebody else in line however this is just my assumption.
Web Reference: http://www.OwnGJ.com
0 votes Thank Flag Link Fri Apr 24, 2009
It's easy as realtors to get stuck in our local customs when dealing with contracts. In reality most everything is negotiable even though we rarly see variations in most offers. Exeptions are federal RESPA laws, fair housing laws, ect. must be obeyed. The bank (or the buyer) can ask for a lot of things (even crazy things)and if both parties agree its a go. Buyers and realtors need to always remember READ the contract and either ask for changes, walk away or accept the terms.
0 votes Thank Flag Link Thu Apr 23, 2009
This is standard practice on the bank owned properties. We write a contract/offer , they send back an "addendum", basically a new contract. We have the option to sign and accept their terms or say "no thanks".
0 votes Thank Flag Link Thu Apr 23, 2009
When dealing with banks it's the golden rule: "He who has the gold makes the rules". Anything agreed to in writing is binding and allowed by the parties involved. The document itself will govern the transaction. If they have committed to you and actually accepted it then you should be okay and not have to worry about someone elses offer getting the way. Best.
Alan Strange
0 votes Thank Flag Link Thu Apr 23, 2009
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