Here is the story. We made a bid on a house and were countered with another offer from the owner. We accepted this offer and came to an agreement with the owner via our respective realtors to purchase the home. We then followed by giving a deposit for escrow equalling 1% of the purchase price and then hired an attorney, set up an inspection appointment (which is to happen later this week) and also hired a contractor to give us an appraisal of work needed on the house. We also sold our automobile to help raise more money for the house. Basically we did all of this with the verbal purchase agreement. Then after having done all of this, we were called up and told that they have sold the house to someone else for 10K more. Is this possible? Or are they able to break this agreement? Background info: The selling agent for the new buyers is not the owners agency or ours. Also, they did not get the binder signed because the owner was out of town, but she did agree to sell the house to us verbally. Please advise on the nexts steps we should take. Thank you!Verbal Contracts?
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Here is the story. We made a bid on a house and were countered with another offer from the owner. We accepted this offer and came to an agreement with the owner via our respective realtors to purchase the home. We then followed by giving a deposit for escrow equalling 1% of the purchase price and then hired an attorney, set up an inspection appointment (which is to happen later this week) and also hired a contractor to give us an appraisal of work needed on the house. We also sold our automobile to help raise more money for the house. Basically we did all of this with the verbal purchase agreement. Then after having done all of this, we were called up and told that they have sold the house to someone else for 10K more. Is this possible? Or are they able to break this agreement? Background info: The selling agent for the new buyers is not the owners agency or ours. Also, they did not get the binder signed because the owner was out of town, but she did agree to sell the house to us verbally. Please advise on the nexts steps we should take. Thank you!
This is difficult to say. Normally real estate contracts are not enforceable unless in writing. I'm not sure why you had to put down money in escrow -- this might constitute partial performance. Was there any paperwork? I know that I wouldn't be providing any money to anyone without written paperwork... this is very important and I'd find it hard to believe that there was none at all.
Did you sign any paperwork with the realtor? After all, if they took 1% escrow from you I would have to think that you received some paperwork from them and it will probably tell you about how to deal with offers (and probably that they aren't binding unless everything is contained within a signed writing, including a contract of sale).
It seems that you agreed to terms with the realtor and that the realtor relayed terms, ostensibly yours, to the seller. However, there was never any actual agreement between you and the seller regarding clear and unambiguous terms and the seller had little involvement. From reading what you write, it would seem unlikely to me that you had any agreement that the courts would recognize, especially without a writing binding the seller.
It seems that you agreed to terms with the realtor and that the realtor relayed terms, ostensibly yours, to the seller. However, there was never any actual agreement between you and the seller regarding clear and unambiguous terms and the seller had little involvement. From reading what you write, it would seem unlikely to me that you had any agreement that the courts would recognize, especially without a writing binding the seller.
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