I had a client put in an written signed offer on a Metro Detroit foreclosure last week. It was a nice Farmington Hills foreclosure. I sent it over to the listing agent along with the copy of the deposit money. I sent via email and fax and requested confirmation of receipt. The listing agent email me back to confirm he got it. The listing agent is also the broker.
The Metro Detroit real estate agent/broker emailed me and said the bank had a counter offer of 192,000. He said to send a counter offer back as we were close to working out a deal. I talked to my client and and I emailed the listing agent/broker that we would accept the offer.
Well imagine my surprise today (2 days later) when I got an email from this broker stating that he had received two more offers and that it would most likely be a highest and best offer scenario. He also stated he wasn't jerking me around and the offers were not from his office. We didn't have a deal on the Metro Detroit foreclosure anymore.
I emailed him and told him I thought we had a deal. Things like that upset me. It's like a shell game. We have a deal. We don't have a deal. But it is in writing. That's what contracts are made of. I told him that I thought it would hold up in court with everything being in emails and in writing back and forth. (Thank goodness I don't delete any email pertaining to a deal until the deal closes.)
I even told him that my clients were young. I told the listing broker I just expected my clients to be treated like he would want his family to be treated. He kind of blew me off and said "he wished he could sell us the house" but..............he had a fiduciary duty to his client.
Well I told all of this to my clients who are upset of course. But luckily they have an attorney friend that is looking over the emails and going to advise them. I am hoping that this constitutes a valid contract in the eyes of the law.
I am so tired of the banks jerking the real estate industry around. So I am hoping the attorney can hold the bank's feet to the fire. I am hoping to hold the listing agent's feet to the fire for performance of the contract. I think the emails and technology should make a good case for the courts.
A ruling for the future. Banks can't rewrite the real estate rules and we have to start holding them accountable to the rules of real estate and our industry. They can't run our business their way.
Russ Ravary your Metro Detroit realtor
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Russ - I read your post and there is one line that jumped out to me - "I don't delete any email pertaining to a deal until the deal closes." You might want to talk to your broker about that one. When the file closes, we print the emails and place in file and save copy of emails electronically. We have a 5 year statute of limitations for negligence, 10 year statute of limitations for fraud, and no statute of limitation for complaints to the Missouri Real Estate Commission. So our policy is to keep the e-mails indefinitely.