Q: Do we have a sketchy realtor?
My parents were selling their home, closing this Friday. Found out yesterday that the buyers loan did not get approved. The house is empty, they are ready to move. The realtor said that her mom wanted to buy the house and would pay cash. Now this whole thing seems like the realtor set it up so that her mom could make a low ball cash offer to my parents.
A:
If the deal was contingent on financing, and the financing fell through after appropriate applications etc. then that sort of thing happens. WHY it took so long to find that out however is unclear, and we can't provide speculation here without seeing the paper trail. Did your parents hire an attorney to review the transaction? That could have gotten to the bottom of this more quickly, but even with that there is no guarantee! I'd STILL recommend your parents hire a local real estate attorney to review things to make sure the offer is appropriate and covers them legally.
USUALLY offers contingent on financing say 'contingent on buyers applying for financing within y days and receiving approval within x days' or something like that which would have provided the time line so everyone knew the 'drop dead' dates. Did your contract have that language and was the application/informing done appropriately? If not, you may have a claim against the real estate agent for negligence or breach of contract or against the buyer for breach. Or you may not -- again, hard to say without seeing the paperwork.
Your parent are under NO obligation to accept a 'low ball' offer (assuming it is lower than the listing price). If they feel
this agent has not represented them properly, they should consider switching agents and moving forward.
--This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship. I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice!
Thomas. R. Morris agrees with this answer
A:
I basically agree with Mr. Zichi's answer.
There is not enough information to determine whether you have a "sketchy" realtor. The circumstances may not be the realtor's fault. I agree that your parents may be well served by hiring an attorney to assist them in evaluating the new cash offer and determining how they should proceed.
A: The narrative requires further information, but understand that in real estate there are numerous variables, so many to speak of, that can affect the success of a transaction. I would proceed with caution and find out when the realtor learned of the buyer's mortgage denial. Start there. Good luck.
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