No Really, An Offer Is Not Binding...Hello!!!

By
Real Estate Broker/Owner with Debbie DiFonzo - United Country VIP Realty, SW Missouri

Multi offer situations are becoming more popular once again - not only for short sales and foreclosures.

We are seeing new properties - first time on the market homes, farms and ranches - also receiving multiple offers.

No matter if you are in Florida or in Missouri, the rules are the same: An agreement is not binding until ALL parties have signed the required documents.

I had a buyer’s agent call me today and tell me he was upset because we have multiple offers on my short sale listing in Davenport, FL. He called on a Friday and asked if we had any offers (at the time we didn’t) and I told him no. However, the price was just reduced that morning and we would likely have offers come in over the weekend because the new listed price was very competitive. That evening I received his buyer’s offer and called him to let him know I had it and would be forwarding it to the seller.

Over the weekend we did indeed get multiple offers, as I suspected we would. So on Monday morning, in the interest of fairness, I sent out an email to each buyer’s agent letting them know we had multiple offers and needed their buyer’s highest and best offer. This particular agent called me and was quite upset that I had presented other offers to the seller. His words exactly were “In our offer, we checked the box in the short sale addendum that the seller can’t accept any other offers.” To which I responded “What are you talking about?”

The Florida FAR/BAR short sale addendum does have this clause in it. Here is the clause in question.
A Contract Is A Contract When Both Parties Have Signed
A buyer and seller of a Short Sale can either decide to let the seller accept back-up offers or not. Anything is negotiable. If we had an executed contract and option A was checked then yes, he would have cause for concern. However, the last time I checked, an offer only signed by the buyer is not an executed contract. It’s just an offer. No matter how many classes you take about distressed properties or distressed property designations you have (this guy had them all) if you don’t know the law (as in your state’s contract law) you can’t succeed in this business.

Everything in real estate, and business for that matter, has to be in writing. An agreement or contract between the buyer and seller is not binding until BOTH PARTIES HAVE SIGNED IT. It’s a tough market right now and I understand there is some emotion involved, but we have to step up as professionals and there is a minimum mount of knowledge every agent should possess. Let’s step it up for our customers.

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Mortgage Assistance Relief Services Disclosure

Tutas Towne Realty, Inc is not associated with the government and our services have not been approved by the government or your Lender. If you stop paying your mortgage you could lose your home and damage your credit. Your Lender may not agree to the change of your loan and/or a Short Sale.With a Short Sale, there are no guarantees offered and we cannot provide legal advice. Seek legal advice.
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Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales, Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Rainmaker
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Jenifer Lower
Bozeman Montana Real Estate .net - Bozeman, MT
Your Dream. Our Passion.

Saw this post previously and made me giggle, really???  Are they really out there???  Is it too much to expect to get to work with professionals?  By the way, my family all lives in St. Joseph, MO, I visit your state regularly.

Sep 22, 2011 05:48 AM #1
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Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
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Excellent reblog Debbie. Thanks for sharing. 

Oct 26, 2011 01:46 PM #2
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Rainmaker
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Debbie DiFonzo

Lebanon MO and Buffalo Missouri Real Estate
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