Frustrated with real estate and venting

[AlanB]

So we have been very actively looking for a new house / land for the past month plus, the DW had been looking for the last several years.

House pops up on MLS auto notify, fits what we want, where we want, looks right, go view it that night (Wed) like what we see, couple questions, write a full offer, 1/2 closing costs, we want to look at pool that disclosure says has a tear.

They counter, pretty close to what we offered, some hangs about repairing the pool, we have to take it "as is" give us till Sat noon to look at it and make up our mind.

We set a time with them too come look at it tommorrow (sat) and look at the pool, spent today running around getting paperwork together, loans approved, etc. got the paperwork all together they wanted etc.

Our agent calls and says they have pulled their offer and sold to someone else this evening..... go figure, that offer came from a neighbor and the selling agent is also going to be the buying agent.

Oh well, the deal is off, I had been told that the seller was a very standup guy (by mutual freind) So when the deal is off, after I have already cancelled my plans for the weekend to do this house deal, I call this guy direct, he plays the "it's all legal" card, and my realtor should talk to his realtor card.... Man, it just frosts me, yep it may be legal, but like I told the man, he signed a written contract to me and told me I had till tomorrow to make up my mind,,, May be legal, still does not make it right too me.

I hope I don't do people this way, I don't think it phases him a bit.

Live and learn I guess but it sure does burn me up.

 

[bmac]

That Stinks! Was the Sat. deadline specified in the offer? Are they not contractually bound by signing an acceptance of your offer. I know as a buyer, if you back out you lose your earnest money (at least that's my interpretation of the function of earnest money). Seems to me that they have a duty to honor the offer or they should have some financial liability. Obviously, I'm not a real estate agent and know very little about this. But, I'd be angry and venting, too, we I in your position.

 

[AlanB]

Yes, the Sat deadline was theirs, they wrote it in, when I spoke with the guy he said they "could not just wait around on us to make up our mind"

The seller does not put up earnest money, but yeah, I had to put up $1000 that I would have lost had I pulled back......

I think what they did was legal, just not very ethical. My agent is pretty pissed as well, I will let her work it with the board of realtors.

 

[Nat]

sounds like a lawsuit for specific performance to me. Here in NC if you sign a contract to buy a certian piece of property and the seller backs out they are sued for "specific performance". A piece of property is unique, there is no other like it in the world on that spot on the world, and if you have a contract to buy it and the seller agreed in writing, they are open for a suit, and the court will agree with you. Look into it. Later, Nat

 

[rox]

TBN is a nice plce to vent. very sympathetic members here. Just and idea, the neighbor who is buying "your" dream house, wonde what his house is like? it will be going on the market soon.

 

[ultrarunner]

It really all comes down to what is legal in Clarksville TN.

From personal experience in California on the buying side, there is no deal until the offer is accepted. Every counter offer is essentially a "New Deal"

Years ago, my brother told me if I was really interested in a specific property that I should first get it under contract before spending a lot of time on it.

Your protection as a buyer would be to have a written inspection period in the contract to do your due diligence and make your offer subject to approval of a pest report, survey, etc.

Doubt you could do much to the seller, but you could always file an ethics complaint against the agent that is "Double Ending" the deal.

I would hang in there for a while if you still want it. In my area it is not uncommon for a first, second, or even third back-up offer to end up as the buyer.

 

[CurlyDave]

I know as a buyer, if you back out you lose your earnest money (at least that's my interpretation of the function of earnest money).

In the modern world it usually doesn't happen that way. DW and I sold a house ~18 months ago where the buyer had put $18k of ernest money down.

They backed out at the last minute and when I tred to get their ernest money, they said they would prevent the sale of the house to anyone else for three or four months while it got hashed out in court if we didn't give them their money back.

It ended up with them paying for a termite fumigation and we gave them the rest of the money back.

There was an great example of how having a back-up offer in would benefit someone.

 

[ScottAR]

Been there, got the Tshirt and the gray hairs...

Your agent should know what recourse you have, or you can contact an attorney that specializes in real estate. Since money has changed hands that would cement the contract in my eyes... Only the court's eyes would matter if took that far.

My family has been through a situation similar to what Nat talks about. Ours was fairly straight forward. A one time court visit and some attorney fees.
Our would be seller accepted the earnest money and then backed out. We filed suit for specific performance and long story short we bought the property as per the original agreement.
I dunno how it works in TN.

 

[MossRoad]

If they took $1000.00 earnest money and said they'd wait until a certain time period, I'd think is would be illegal for them to go back on the deal until that time expired, even if they gave you back the money(besides them being moral weasels).

With that said... unless you stand to gain financially from fighting them, it is simply not worth it for the aggravation, frustration and consumption of Roll Aids that will ensue. File a complaint with the proper folks and move on. We were on the losing end of a rotten zoning appeal and a lawyer told us some good advice... the sale was not meant to be. Take it as a sign from above that there was something wrong with the place and you will find a better, nicer place in good time.

It sounds like the sellers were trying to hid something if they would not give you time to inspect everything and get your ducks in a row. You are better off not having to deal with them.

 

[Superduper]

So we have been very actively looking for a new house / land for the past month plus, the DW had been looking for the last several years.

House pops up on MLS auto notify, fits what we want, where we want, looks right, go view it that night (Wed) like what we see, couple questions, write a full offer, 1/2 closing costs, we want to look at pool that disclosure says has a tear.

They counter, pretty close to what we offered, some hangs about repairing the pool, we have to take it "as is" give us till Sat noon to look at it and make up our mind.

Sorry to hear about your frustrations. Don't know how they do business in TN but presuming it is similar to CA, it all boils down to whether you accepted the counter offer with the condition that you have til saturday to accept pool in as-is condition. If you accepted those terms, then the sellers will be contractually bound to give you the agreed time for due diligence. If, however, you were presented with a counter offer which you declined to sign until you were satisfied with it's condition, and the saturday deadline was a verbal one rather than a written one, then it would be hard to prove and you may not have a case. Whether you have a case for specific performance depends entirely on the situation. Without possessing intimate knowledge of many specifics of the transaction, you probably shouldn't expect to receive meaningful advice. Another thing you may want to consider is the relationship with the realtor. In California, real estate agents have a fiduciary duty to look after the interests of their clients. If the agent was representing the buyer and seller, then the real estate agent has an obligation to protect equally, the buyer as well as the sellers. You should check your documents to see if there is any agency disclosure indicating whether the agent was representing you. If this is the case, then you might want to speak with an attorney (or real estate licensing authority) regarding taking action against the realtor for legal or ethical misconduct or investigate whether the agent was working in your best interest.

Perhaps this is an opportunity for you to vent at a frustrating situation. But I can suggest that the next time around, always lock up a transaction and request sufficient time to do your due diligence. This means accepting a contract with the understanding that you be provided a certain amount of time (17 days is common in CA) which can be any negotiated amount.