Can I back out of a Real Estate contract?

Question

I am getting worried because our realtor showed us 4 homes in a subdivision that we liked. We wrote offers on all of them and have submitted them. One of the homes came back way too fast and accepted all of our terms and then we got worried that the home may be overpriced and that is why they are so hurried. We signed the offer and the sellers signed the offer and my realtor has a copy of it but she has not put a Binding Agreement date or acceptance date on it yet but all parties have signed it. She is says she is waiting on a response from the other offers before she sends it back to them. If the other offers are accepted and I like one of those better, will I owe any earnest money to the first sellers since they accepted our offer but we have not sent it back to them? How do I get out of that offer?

Answer 1

It's hard to say how exactly your contract works. Really hard, because here in NC, once a contract has been signed by both parties, you are officially under a binding legal contract. Even if you haven't given them the earnest $ in hand yet, they could very well come after you for not following through as the signed contract states you will (specific performance). Also, I don't know what kind of contingencies are in your contract, so it's especially hard to say what could get you out of it, especially this fast.

I don't understand why your agent would put you in such a position, unless the binding agreement date you speak of really is the last seal on the deal (never heard of anything like this though). You definitely need to ask your agent about this, because it will be hard for anyone here to really know, unless they live in the same state as you. If you don't trust your agent, talk to her manager or her broker in charge.

If your agent is any good, they would know or find out the approximate value of a home before you make an offer on it, to help ensure that you aren't paying too much for it. And I have never seen an agent have a buyer submit 4 offers. It's just stupid.

Good luck, I hope it works out how you want it to!

Answer 2

This sounds like a mess.
First, you should never make multiple offers on properties unless you are prepared to buy all of them. The person who said you could be legally obligated to buy all the properties is correct.
Second, you never offer more money to buy a house than you are willing to spend because you can't negotiate back down. Third, the minute the other party accepted your offer is the acceptance date and your realtor failing to correctly put that in the contract does not change that fact. Your realtor is an idiot.
Fourth, just because the offer came back quickly doesn't mean the house is overpriced or that you offered too much. Again, your REALTOR should have given you an accurate picture of the houses market value before you made the offer.
Fifth, you should withdraw all other offers NOW, before anyone accepts another one.

Now, if you want to get out of buying the house with your accepted offer, the most common ways are to demonstrate an inability to aquire financing as described in the offer (no easy trick if in fact you do qualify) or walk away after you have a home inspection done. You can ask that the price be reduced on the basis of repairs that the inspection says are needed or insist that the seller make all the repairs and hope that they refuse. Last, you can fail to close and kiss your earnest money good-bye.

Answer 3

I'd stop dealing with that idiot of an agent. Putting 4 offers in on 4 homes is just plain stupid. Neither of you are very bright since if all 4 are accepted you're legally obligated to follow through with ALL 4 purchases. Most contracts will provide for loss of your earnest money at the very least so you could be out that much times 4 if all 4 are accepted. In the worst case, you could be facing 4 lawsuits for specific performance. Not a very enviable place to be!

At this point you need a good lawyer to get you out of the dung-heap. You may have a case against the agent and their broker for allowing this to happen, but you also need to take some personal responsibility for your own inane actions here.

Answer 4

You realtor is extremely unethical and has possibly put you in a precarious position as per the other post. What you need to do ASAP is the have the realtor send a recission of the offer before any of the others have a chance to reply. Do this IMMEDIATELY. So something to the effect that so and so has withdrawn offer on property dated so ans so and make sure the sellers on the other side receives it. Save your fax confirmation and call to make sure it's in hand

Answer 5

YOu don't want the first house now because they accepted your offer?? I don't understand the logic here. You liked it, put the price you wanted to pay, they want to sell. No ulterior motives here that I can see...

Who is your REALTOR anyways, a newbie? I never heard of ANYONE allowing a buyer to write FOUR offers!! If the second, third, fourth sellers ALL accept your offers (it could happen), then you have bought all four houses!! No, on second thought, you will be involved in 4 court cases!

Run as fast as you can away from that realtor, she/he has insurance to pay for attorney fees, you don't!

You now have a binding offer on that first house. No way is it legal for that realtor to hold back on it once both parties have signed it. Go talk to his/her broker immediately, keep yourself from being SUED!

Answer 6

If you signed it and the seller signed it, sorry but you have a binding agreement. This happened to me once, when I was selling 2 lots.

The buyer begged & begged to back out.

I asked him to pay me for my trouble a small amount and he did it was much cheaper than going to court.

Your case may be different though, I don't know.