Seller signed contract for purchase, but is entertaining other offers?

Question

hi,

both of us buyer and seller signed the contract on friday after a week of going back and forth over the phone about small details. i called to get an appointment for the home inspection, but accidentally found out that the seller is still showing his house to others who are coming in for a second viewing and says he will still negotiate with others.

he says that since he has 5 business days, he is still entertaining offers. what do i do? i live in illinois. we never signed the optional part of the contract where it asks if he is allowed to still keep his home on sale. is he allowed to get a contract signed and then still entertain other offers. i dont want him to use my contract to leverage with other people. the home is very desirable, but we are on a budget. also i am not selling my current home so there are no such morrtgage contingencies based on my current home.

lawyer is out of town till tuesday. this is getting in my head. its that sunken heart feeling of loosing your dream home. he was talking with me like he is warning me that the deal may not go through since he is getting another better offer.

can i argue with him using the good faith covenant and fair dealing covenant?

thanks,
mona

Answer 1

If I'm correct, until all contingencies have been taken care of, they can and should entertain other offers. If your financing falls through, or you find another home you like better, the inspections don't come out like you want, etc. There are a hundred different reasons why YOU would back out, so he's covering his behind. It's not unusual at all.

If all of your things are in order, I wouldn't worry about it :)

Good luck :)

Answer 2

You have an agreement that you can enforce. The seller is still permitted to receive contingency offers if your deal falls through, however, but he cannot sell to anyone else unless YOU fail to complete the deal.

If the seller should accept a more generous offer, you can enforce your agreement in the courts and force the seller to sell you the home at your agreed-upon price. You can sue for specific performance -- i.e. to sell you the house at the agreed price, or you could sue for whatever additional funds he would receive from the other buyer. The mere threat of a lawsuit would probably bring him back into line.

The seller does not have "5 business days" to mull over your offer once he has accepted it. It's becoming common practice for a potential buyer to offer a short-term "option" that allows them to back out of a deal if the offer is accepted. It could probably be possible for a seller to do the same but if there is no consideration for this option (i.e. money paid to you for it) then it doesn't exist.

However, you really do need to discuss this with your attorney. Even though he's out of town until Tuesday, there is NO WAY POSSIBLE for the seller to close on another offer before then so don't let his bullying bother you. Don't waste your sanity worrying about it, or even discussing it with the seller. Enjoy your weekend and discuss it with your attorney on Tuesday. Assuming that the inspection is OK and your funding is lined out, you WILL get your dream home!

Be thankful that you are in the US. In the UK, there is no binding agreement until the actual closing. It's very common over there for a seller to accept multiple offers and then cherry-pick the best of the lot. The process is known as "gazumping" and is perfectly legal there. It's NOT legal in the US, however.

Answer 3

see if THE STATUTE OF FRAUD applies to this contract.
must be included in the contract:
the sale price
the date for the closing
the purchase of any personal property inside the house
the condition of which the sale is predicted, such as obtaining sufficient financing to purchase the home and a passing report on the structure by a building inspector
particular contract clause provisions, such as "time is of the essence"
just hang tight until your lawyer is back!

Answer 4

If the owner wants to entertain offers, unfortunately they can. You can sue, but for what? You could hold them to a penalty though, which they would probably gladly pay especially if they were receiving much more from another party. Face it, the real estate game is full of backstabbing folks who only are interested in money....some actually worry about your feelings, but most only see dollar signs.

Answer 5

Many sellers continue to show their homes to get backup offers in case the signed offer falls through. Of course, I don't know if that is what he is doing. If the seller breaks the contract, I think your only recourse is to sue him, which he might bet is something you won't do.

Answer 6

You probably need to wait for the lawyer. It would seem okay for him to take contingent offers - backups in case yours falls through, but if he's hoping to better your offer, he's asking for a big lawsuit I would think.

In the meantime, talk to your realtor. That is what they get paid for.

(I'm not a lawyer)