Hypothetically, lets say a buyer's offer on a house is accepted. He has 30 days until closing. According to the contract he must come up with the money at closing. During the process the buyer cannot find any funding and it looks as if the deal will fall through. Another offer is made on the home. The sellers want to accept the new higher offer, but need a release signed by the buyer. The buyer refuses. My question is, after midnight on the closing date, do the sellers need a signed release to accept the new contract? Is the former contract voided by the old buyer's failure to find financing? Can they legally accept the new offer after informing the first party their contract has expired? My wife and I are the 2nd buyers, but we're being told the seller can't accept our offer until they get a signed release. The deadbeat buyer can refuse for months and hold up everything with that logic! Is that excuse legit.
By the way we are located in Florida.
2007-11-28 13:01:45 · 3 answers · asked by the_lateman 2 in Business & Finance ➔ Renting & Real Estate
We made an offer when our realtor told us the deal would fall through. Obviously we were not told what the other party had offered, until the seller's realtor said he had no reason to believe the offer wouldn't go through since ours was better. In our market this house is worth an extra 5G. Its still below market value and we don't want to be greedy.
2007-11-28 13:32:50 · update #1
So how long do they have to be cautious? After the closing date, if the buyer still is frantically (and unsuccessfully) looking for financing, isn't the contract voided? Can they hold out forever if the 1st buyer still wants the house badly enough?
2007-11-28 13:35:41 · update #2
usually there's a time limit on an offer sheet that they have to come up with the financing-I don't think they can keep dragging it for months
2007-11-28 13:44:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The sellers are proceeding with appropriate legal caution, as they should. Contract law is not as clear cut as one would think it is. The first buyer involved has made it clear that he wishes to fulfill the contract by procuring financing in order to do so. The fact that he has not been able to do so does not automatically invalidate his offer to purchase. Doubtless the sellers have engaged legal counsel, and have been advised to proceed slowly and to get a signed release before THEY find themselves in the midst of a legal quagmire.
2007-11-28 13:25:27 · answer #2 · answered by acermill 7 · 1⤊ 0⤋
What I'd like to know is why, if you are the second buyer, are you offering more when you know they accepted an offer for less previously.
And
Since you are doing that, do you have an extra 25 grand that you can give me?
2007-11-28 13:10:17 · answer #3 · answered by 321 3 · 0⤊ 1⤋