Q: Signed Purchase Agreement on a new house "contingent on the removal of the original offer..."
We recently put an offer on a house that was accepted, "contingent on the removal of the original offer by XXX signed on 3/24/18". First, is it even legal for a seller to accept a second offer contingent on the first, and second, does this language guarantee that our offer is valid no matter what the reason for the removal of the original offer? For example, if the other buyers (with the first accepted offer) set a closing date, but then fail to close, does our offer immediately become valid?
Also, because our offer is contingent on the original offer, do we have a legal right to see the paperwork for that original offer?
A:
The parties in an offer to purchase can agree to whatever terms don't violate the law. If the offer were contingent on a DNA test showing the purchaser was not of mixed race heritage, for example, that would not be legal. Making it contingent on a previous offer being withdrawn is perfectly OK.
The offer needs to be WITHDRAWN under that language, however, and simply failing to close is not enough. There is also no legal 'right' to actually SEE the previous offer, but you can certainly request that as a contingency to accepting the counter offer!
What is clear, however, is that you need to have an attorney helping you with this process! It sounds like there are lots of complications causing you concern, and the best way to address those is to insure you have legal guidance on your side ... a real estate agent isn't 'enough' =-= you need real legal advice. Seek local legal help ASAP.
-- 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
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