I submitted a letter of intent on a house that I want to purchase in Maryland.. the letter was signed and we went forward to sign the MAR agreement for closing. Today we were supposed to close and the seller said they are going to consider a higher offer... Can I do anything because they did sign the letter of intent with our offer..
2007-05-18 07:31:16 · 10 answers · asked by Jeff P 1 in Business & Finance ➔ Renting & Real Estate
A letter of intent is NOT a contract or a legally binding document. You must have had a ratified contract in the State of Maryland to enforce it. Without a contract, you're out of luck. There's no way you were supposed to go to settlement today if you didn't have a contract (with a good faith deposit) to purchase the property.
2007-05-18 07:41:57 · answer #1 · answered by akc1106 4 · 0⤊ 0⤋
I'm not sure about Letter of Intent. If it's the same thing as an Offer Letter, if both parties have signed it, then it is binding and they can't leave the agreement for a higher offer.
If the seller hasn't signed it, then you are SOL.
Usually it goes:
Signed & Accepted Offer
Signed & Accepted Purchase & Sale (P&S)
Closing
2007-05-18 07:35:04 · answer #2 · answered by parafly9 1 · 0⤊ 0⤋
You are not clear on what a 'letter of intent' is. If, in Maryland, that is equivalent to a contractual offer to purchase, signed by both parties, then you have a legitimate case.
If your letter of intent does not create an actual contract (you will need legal advice on that part), then you have no basis for legal recourse.
Good luck.
2007-05-18 07:37:59 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
You can try pleading with the seller but I wouldn't expect them to change their minds. You can try waiting to see if they do reduce the price to $315K - if they do then $300K really would be more sensible. But if they do reduce that far, that could bring the house into a lot of other people's price range - which would encourage more competition for it. You might explain to them that you offered $300K because based on other market prices that's about what the home is worth. That's the only logic you have behind your offer so if you can make them understand that you're not trying to lowball them, you're just trying to pay a fair market value - they may be more willing to go with it. Other than that, you may simply have to raise the offer if you want the house as much as you say you do.
2016-04-01 08:19:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I'm assuming you went forward with a private deal with a seller -- no real estate agents and no attorneys. That can be dicey. You cite a "letter of intent", not a contract. There is no mention of a deposit held in escrow along with a contract for sale signed by buyer and seller. There is no mention of a title search having been completed. I'm afraid it sounds as though you need legal counsel to determine if there ever was a deal!
2007-05-18 07:46:25 · answer #5 · answered by felixthecat 6 · 0⤊ 0⤋
I am not familiar with your area, but this issue is large enough that you should consult an attorney. If you have a case with your letter of intent, then you can sue for specific performance. If you win, then they will be forced to sell you the property at the terms you agreed upon. If you letter of intent is vague, then I wouldn't count on winning.
Best of luck.
2007-05-18 07:36:03 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Call a lawyer and see if you can get a free consultation.
Show them the letter and state what you did here.
I'm no expert but I think that it should be binding.
But if no one wants to do anything about it the next time you get papers signed get them notarized at a notary public.
If you do this it will stand in the court of law and they have to stand behind their agreement.
2007-05-18 07:40:00 · answer #7 · answered by moose 5 · 0⤊ 0⤋
If they waited till closing to tell you I'm sure that there is legal recourse available. Contact a lawyer ASAP.
2007-05-18 07:34:05 · answer #8 · answered by masterplanner04 2 · 0⤊ 0⤋
I don't think he can legally do that but if you have a Realtor then they should now everything. Otherwise seeks a lawyers opinion.
2007-05-18 07:34:24 · answer #9 · answered by Rick 5 · 0⤊ 0⤋
Why didn't your attorney make certain they'd executed the contract?
2007-05-18 07:39:35 · answer #10 · answered by Oh Boy! 5 · 0⤊ 0⤋