Melanie, Home Buyer in Los Angeles County, CA

Is a sales agreement/counter offer valid if unsigned by seller (REO) when faxing docs with realtor?

Asked by Melanie, Los Angeles County, CA Fri Oct 3, 2008

I offered on a property and the bank countered. My real estate agent emailed me an unsigned copy. I countered and signed that document but there was no seller's signature. I questioned the agent about this and she said if the deal goes through the bank will sign all the docs then. This goes against my better judgment since I am required to sign. Is this standard practice for the industry???

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7
Melanie
Who is your Realtor? What do they say?
In some REO situations they think they are immune from normal real estate law. Your Realtor works for a broker, who should have some input. There are substantial risks to proceeding in a transaction without proper seller signatures and every office has their own policies.

In some cases you might see something like "seller will not sign" but in most cases they have to sign. This is the type of question that needs advice from a person tied to the transaction, and perhaps even legal counsel.
1 vote Thank Flag Link Sat Oct 4, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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The same thing happened to me this weekend. We made an offer to a bank on a foreclosed property & we got a counteroffer. I asked the realtor to e-mail the counteroffer and it was not signed by the bank. I asked the reason why & was told this was standard practice in foreclosures & that once I accepted the offer then the bank would sign it. I proceeded & accepted the offer, sent in all the paperwork including a cashiers check for 10% of the value of the property. Later the same day I got a call from the realtor saying "we had a problem" & that an offer came in higher than what I had accepted. I said, "I thought once I accepted the banks offer the property was mine"....apparently not so, now I am at risk the the bank will accept the new higher offer even though our negotiations were already done & we had a agreed on the price all because they never signed the counteroffer they sent me......seems incredibly unfair & unethical...any suggestions?
0 votes Thank Flag Link Sat Oct 24, 2009
The same thing happened to me this weekend. We made an offer to a bank on a foreclosed property & we got a counteroffer. I asked the realtor to e-mail the counteroffer and it was not signed by the bank. I asked the reason why & was told this was standard practice in foreclosures & that once I accepted the offer then the bank would sign it. I proceeded & accepted the offer, sent in all the paperwork including a cashiers check for 10% of the value of the property. Later the same day I got a call from the realtor saying "we had a problem" & that an offer came in higher than what I had accepted. I said, "I thought once I accepted the banks offer the property was mine"....apparently not so, now I am at risk the the bank will accept the new higher offer even though our negotiations were already done & we had a agreed on the price all because they never signed the counteroffer they sent me......seems incredibly unfair & unethical...any suggestions?
0 votes Thank Flag Link Sat Oct 24, 2009
Great answers. You all are the best assisting others in this type of forum.

I am goint to the RE office now to discuss further and prevent my counter from going forward as submitted.

Melanie

A big THANK YOU!
0 votes Thank Flag Link Sat Oct 4, 2008
REOs are a different type of transaction since the seller (bank) has typically never seen the property. Therefore, some disclosures that may be required in a 'typical' transaction may be exempt.

But in all REOs that I have recently seen, fully executed contracts and counter offers are necessary for our escrows to begin and files close. So I would be very leary of this and I would speak with the agent's broker about the matter.
Web Reference: http://www.hugotorres.com
0 votes Thank Flag Link Sat Oct 4, 2008
Thank you for your input. Much appreciated.
0 votes Thank Flag Link Sat Oct 4, 2008
Melanie,

The bottom line is ...to move forward without necessary signatures is to do so with significant risk involved. We agree with Kieth that considerable effort should be taken to resolve this ASAP before moving on.

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Sat Oct 4, 2008
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