I live recently signed a contract for the sale of my NYC coop apartment. There is nothing in my contract that prohibits me from continuing to show it

Asked by Maria Vourlides, New York County, NY Tue Feb 2, 2010

but my broker tells me I can't. My listing agreement with the broker has since expired so he has personal reasons for not wanting me to show it.
I can't be sure that the buyer will get financing or board approval so I would like to have back up buyers.
Am I within my rights to continue to show the apt?
Can I consider offers subject to the current buyer's failure to meet the in financing or board approval contingencies?

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8
Joseph Hasti…, Agent, Bayside, NY
Tue Feb 16, 2010
Hi Maria. You've already received many excellent responses. If you still require additional assurance that you can still show, consult your Attorney since you are his client in all matters legal.

You (your broker) do indeed need to inform anyone with interest to view that you are in contract. Of course when they hear this, buyers will trail off in a hurry.

My question is why would you think the buyers you have might not get a loan commitment? Did you not receive a written offer stating the offer amount and total downpayment the buyers would come up with. Not to mention a letter of pre-approval, credit check with a FICO score, DTI of 28% or less with proof of assets and income? This is what an experienced broker would bring forward from a serious buyer.

The only possible problem I could think of is if you accepted a modest offer just to get the apartment off your plate (lowball offer). Boards will protect to the best of their ability, the valuation within the building. With property values having dropped, no board wants to see further erosion (they own apts as well) of value and they could stop the deal in it's tracks. Of course, you'll never know why as Coop boards are under no obligation to disclose reasons for any decision. Some food for thought.

In any event, I do wish you all the best with your sale.
2 votes
Jenet Levy, Agent, New York, NY
Tue Feb 2, 2010
Maria,
Generally we show until there is a signed contract. What we usually do is once there is a contract out, we tell buyers that there is a contract out and we are showing for backup. If you have a signed contract, then that buyer has already given a deposit and if they back out, you keep the deposit. If they don't get the mortgage, you are in a difficult position as far as having lost time, but if your agent properly pre-qualified them, and they had a pre-qualification letter from their lender, you are probably fine. Yes, you can still show but you should disclose that you have a signed contract and are only showing in case this falls through.

Hope this helps.

Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
212 381-4268
http://jenetlevy.halstead.com
2 votes
Kevin O'Shea, Agent, White Plains, NY
Tue Feb 9, 2010
The truth is, very few people, buyers or agents will want to see or show the property once you have signed contracts on it.

If you somehow do get an offer that is higher or better than the contracted offer, I STRONGLY recommend you consult your attorney before proceeding forward. You could be sued.

Before you signed the contract, the buyer should have gotten you a pre-approval and you or your broker should be able to get financial guidelines on the board approval.

Much good luck.

Kevin O'Shea
1 vote
Patricia Sel…, , Massapequa, NY
Thu Feb 4, 2010
Yes you can, New York State Law says we have to present ALL offers up until closing. Go ahead and show your Co-op and if you get a better offer with better terms and conditions then by all means consider taking it.
Most agents will not show a property if it is under contract. Be open and honest with all prospective buyers.
1 vote
First Last, , 90002
Thu Feb 4, 2010
There's no harm in continuing to show it, or in taking names of interested parties. Your broker is wrong in saying that you cannot do so. And yes, if your deal totally falls apart, then the property is back on the market and sure, all offers are available to you.

But please, to avoid some really angry people, do tell everyone that a signed contract exists! Be honest about this.

The most likely reason your broker won't show it is that he is very , very convinced this sale is a done deal. Often brokers are privy to inside information about the board or the buyer that they don't necessarily repeat.

BTW I'm sitting in a house right now that we bought after the contract fell through--the buyers backed out. So, as you can imagine, I'm not much persuaded by people who say these things never happen! ;)


Karla Harby
Vice President
Licensed Real Estate Salesperson
Charles Rutenberg Realty, LLC
127 East 56th Street, 4th Floor
New York, NY 10022
(212) 688-1000 ext. 383
(917) 365-0876 cell and text messages
(212) 688-1919 fax
kharby@rutenbergrealtyny.com
http://www.rutenbergrealtyny.com/agent_details.aspx?agentid=51888
1 vote
Robert Kaplan, Other Pro, Suite 100, NY
Tue Feb 2, 2010
As the previous writer stated, you may continue to show the apt. but most brokers will not continue if you are in contract. The main advantage is to have a backup offer in the event your buyer is rejected by the board or the bank.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Tue Feb 2, 2010
What is your attorney suggesting--generally if there is an executed contract, most buyers aren't interested in looking anyway and why would you want the inconvenience of having to show the unit, especially since you cannot consider other offers while in contract--those offers would remain as back-up offers--we know co-ops can take some time for new buyer board approval and most buyers aren't interested in waiting, because they realize that while waiting they may be passing up another buy. Listen to your broker and or your attorney.
1 vote
Joel Dameral, Agent, South Lake Tahoe, CA
Tue Feb 2, 2010
Maria,

Here in Tahoe I continue to market any of my listings until the day I hand the keys over. You never know what can and will happen. They could not be approved for a loan, have bad credit, or someone could die before the close. There are just too many variables to not continue marketing your property. I have also taken back-up offers in case the accepted offer falls out of escrow (for whatever reason).

Unless contractually you can't- Continue to market and show your property to as many people as possible.

Good Luck,
1 vote
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