I, as a buyerâ€™s agent for a client, found myself in the same situation. Iâ€™m assuming it is a short sale since the you said the owner informed you of this.
After talking to several attorneys (who all amazingly agreed on this) this is a problem. The FIRST contract ratified by the homeowner and buyer should be the only contract. Others should be â€œback-upâ€ offers. The agent must present every offer received to the client but should advise the home seller that there could be consequences if the already accepted offer is not honored. The buyer who has the ratified contract may have a very good case to go after the homeowner. The â€œSubject to Third Party Approvalâ€ addenda is not a reason to continue to accept offers and submit them to the mortgage servicer unless agreed upon by all parties. Of course, this is NOT legal advice. Legal advice must be sought from an attorney. This is the advice that my client received.
Also, MRIS, our Multiple List System says the listing agent MUST change the status from active to â€œContractâ€.