Jack Lewitz (IL Real Estate Specialists)

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Rainmaker
4,798,711
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I structure all of my listings to give me the right to withhold offers once an offer has been agreed to.  So, I avoid this situation for my listings.

I did have a buyer that this happened to and we successfully sued the seller.  We didn't get the house.  But we did receive a very generous settlement with all legal fees paid as well.

 

Jun 01, 2015 04:15 AM
Rainmaker
699,027
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Of course, they ask all the time.  They don't understand contracts.  Most should watch more Judge Judy.

Jun 01, 2015 07:24 AM
Rainmaker
1,027,150
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Yes, a couple of times, however, once I pointed out the potential legal peril and associated expenses, they came to their senses.

Jun 01, 2015 04:19 AM
Rainmaker
90,343
Debra Peters
Referral Realty - Manorville, NY
NY Real Estate Salesperson

No, but I have heard there could be high legal fees associated with this. I think the higher offer would have to well exceed the amount of legal fees involved. I would consult with an Attorney.

Jun 01, 2015 03:59 AM
Rainmaker
1,431,717
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I had a seller try to cancel on my buyer.  We did not let them get a way with it.  I suppose if a seller has a better offer it puts them in a good position when it comes to negotiating repairs.

Jun 02, 2015 01:55 AM
Rainmaker
573,808
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

Yes, but that is called a breech of contract.

Buyers have contingencies in the contract, so have ways to escape.  Sellers typically don't have any options to get out of the contract unless the buyers gives them an opening.

Sellers who cancel a contract still owe commission and the buyer may sue them for specific performance.  That alone makes taking another offer appear less desirable.

Eve

Jun 02, 2015 01:53 AM
Rainer
49,711
Gene Fitzpatrick
Charlotte, NC
the Mortgage Doctor

"Greed, for lack of a better word, is good", says Gordon Gekko.  Look where that put him.  If they have doubts, don't sign the contract.  Once they sign it, they should honor it.  

Jun 01, 2015 11:36 PM
Rainmaker
931,223
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Several time, and in one case they bought out the buyer. It worked out for everyone involved.

Jun 01, 2015 11:28 PM
Rainer
44,646
Dave Hymes
RE/MAX Gold - Placerville, CA

Couple of times. I advised that if they really want to do that they should speak to an attorney first because they may be in breach of contract, which could result in damages. After that advice nobody has ever wanted to do it.

Jun 02, 2015 07:31 AM
Rainmaker
1,561,807
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

If the Buyer is in contract with the Seller and the Buyer is performing under the contract in good faith . . . and the Seller bulks and tries to cancel . . . I've got my attorney on speed dial and two words would be uttered:   SPECIFIC PERFORMANCE!

Jun 02, 2015 04:46 AM
Rainmaker
2,878,596
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

NO.  What part of legally binding does the seller not understand? And, on what grounds would the seller cancel?  Unless the buyer is not preforming .... ???

Jun 02, 2015 02:10 AM
Rainer
501,126
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

No, yet how did the seller get the offer? Surely, it didn't come from his agent since they were already under contract or was it a FSBO?

Jun 02, 2015 12:57 AM
Rainmaker
3,064,754
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

The next one goes into backup position

Feb 25, 2018 06:23 AM
Rainmaker
273,670
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

I tell them that they need to talk to a real estate attorney and this usually settles the issue.

Jun 11, 2015 12:06 PM
Rainer
528,554
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Jack,

That always seems tempting, but rarely works out well. People, who make delectably high offers, often do not back them up with the wherewithall to get to closing. Better to stick with a boring, but reasonable offer.

Jun 06, 2015 03:22 AM
Rainmaker
958,662
Ginger Harper
Coldwell Banker Sea Coast Advantage - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

Yes....but I make them aware that they could be sued. 

Jun 04, 2015 08:40 AM
Rainmaker
1,069,462
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Thank goodness this is one experience I have missed!

Jun 02, 2015 03:36 PM
Rainmaker
774,743
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

With proper counseling with the seller this issue can usually be avoided. The occasion can arise when the seller needs to be reminded of the binding nature of a contract and the potential legal and financial ramifications of default.

Jun 02, 2015 01:31 PM
Rainmaker
48,847
Adele Langdon
Los Angeles, CA
Exclusive Realty Inc.

No I have not had this happen but I sure got a lot of good answers and preventions from all of you, just in case it ever does. Thanks everyone!

 

Jun 02, 2015 12:24 PM
Rainer
222,458
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

Really?  People will try anything.

Jun 02, 2015 07:11 AM
Rainer
157,815
Laura Moore
Coldwell Banker - Granite Bay, CA
Competent ~ Caring ~ Committed

I have had the experience twice. Once the buyers prevailed after the seller got a legal consult. The second time, the Seller provided monetary compensation to the first Buyer. They took it, and the Seller moved on to Buyer 2.

Jun 02, 2015 06:43 AM
Rainmaker
1,611,142
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Greedy seller never makes for a good sale. I'm sure it's happened in the faster markets but not too much of that going on here in the Midwest. If he signed it, he's bound by it & I wouldn't be a party otherwise.

Jun 02, 2015 06:03 AM
Ambassador
1,245,419
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

I have had sellers ask me if they could do this and once I mention the word LAWSUIT they are most happy with the current buyer in escrow.

Jun 02, 2015 04:19 AM
Rainmaker
1,543,577
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Never had it happen. My listing agreemnets all state that I do not present any offers received after a contract signed.

Jun 02, 2015 03:03 AM
Rainmaker
375,666
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Oh yeah, several times.  The seller needs to talk to an attorney.

Jun 02, 2015 02:21 AM
Rainer
390,088
Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

Only once and it was a challenge. Now I try to structure to avoid the situation.

Jun 02, 2015 02:05 AM
Rainer
116,518
Ric Mills
Keller Williams Southern Az - Tucson, AZ
Integrity, Honesty, and Vast Real Estate Knowledge

It does Happen but luckily it hasn't been a big issue once all the consequences are explained.  The other offer would have to be a "HUGE" difference to even think about breaking the contract.

Jun 02, 2015 01:24 AM
Rainer
26,956
Michael Hinchliffe
The Bean Group - Georgetown, MA

Absolutely not!  Before we talk about offers, I explain what they can or can't do.  Unless it's a formal backup offer, they don't get to see details.

Jun 02, 2015 12:48 AM
Rainmaker
567,795
Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

This has happened to several of my buyers, and I simply had the listing agent's broker explain to the seller about how a contract works. All then closed.

Jun 02, 2015 12:42 AM
Rainer
93,321
Tamara Schuster
Naperville Glen Ellyn Lisle Plainfield Wheaton Illinois - Naperville, IL
Realtor Broker - Naperville

In Illinois this can happen and there are legal ways they can do this however there is an option in the contract for the first buyer to waive all contingincies and go ahead with the purchase.  There are so many outs of a contract.  It is important to make sure your real estate attorney is involved and everything is done through an attorney.

Jun 02, 2015 12:34 AM
Rainer
292,121
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

excellent post, but hopefully this does not happen in your business:(

Jun 02, 2015 12:25 AM
Rainer
140,465
Keith Whited
RE/MAX Gateway - Alexandria, VA

Has happened several times but they always relent once I explain the possible legal implications.

Jun 02, 2015 12:18 AM
Rainer
352,726
Teri Pacitto
Compass - Westlake Village, CA
Real Estate, Your Style...Your Home...My Specialty

Never had this happen like that, but have had similar situation. We also won our commission and the seller paid three commission sides. Unfortunately this situation happens. It's called greed!

Jun 01, 2015 11:49 PM
Ambassador
3,985,140
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Probably but not a single one of them had the nerve to bring it up or ask me how to do it. They know it would be wrong.

Jun 01, 2015 01:29 PM
Ambassador
1,527,851
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Gotta love Chris and Dick's comment.

Jun 01, 2015 10:23 AM
Rainmaker
817,102
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Jack - So far this has not been an issue, but I can see how a seller would want to try to get more money with another offer. What they don't understand is the ramifications of canceling a contract.

Jun 01, 2015 09:59 AM
Rainmaker
217,578
Roy Barker
Dockside Realty, Inc. - Santa Rosa Beach, FL
Serving your Florida Real Estate needs!

I had this happen years ago, and my broker at the time would not fight for the commission.  I have had other times when I explained to the seller what the contract said and they understood.

Jun 01, 2015 08:51 AM
Rainmaker
3,985,569
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Yes, several times in the past

Jun 01, 2015 07:27 AM
Rainmaker
1,407,227
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jack Lewitz Not easy to do since the buyer could bring a suit against the seller for specific performance.

Jun 01, 2015 06:13 AM
Rainmaker
5,828,024
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Sure. That is a good reason for the buyers to have a ratified contract.

Jun 01, 2015 05:44 AM
Rainer
367,976
Raoul Loustaunau
EXP REALTY - Phoenix, AZ
urhomefinder.com myvaluetoday.com

not so far and hope it does not happen , great question wow ; gabes answer is what i think it would at the en be the result of this fiasco. have a great day

Jun 01, 2015 04:29 AM
Rainmaker
634,116
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

I've had buyers wish they could cancel but my clients are always informed up front that once they sign they can legally exit the contract only if the buyer fails to perform or makes additional demands (repairs, etc.).

Jun 01, 2015 04:25 AM
Rainmaker
1,085,154
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

GREED.  OFTEN from dble ended deal.. BRE will not deal with it.

Jun 01, 2015 03:38 AM