Bidding War, Relo Co., and LOIs - Posted by Eddie Clay
Posted by Eddie Clay on July 15, 2003 at 13:40:49:
My wife is BuyerAgentA and I’m trying to help her figure out what to do in this crazy situation…
In California, Seller is relocating. BuyerAgentA has been counteroffering with Sellers for weeks. BuyerAgentA calls SellerAgent for latest status and SellerAgent tells BuyerAgentA that Sellers are going to accept offer for 758K just received from BuyerAgentB. BuyerAgentA talks to client, gets in counteroffer for 760K. SellerAgent leaves voice mail to BuyerAgentA saying deal is accepted, and has sent it to their relocation company for final signoff.
BuyerAgentA tells client deal has been accepted, but fax from Relocation Co. never comes in.
SellerAgent calls BuyerAgentA and says they just recieved offer from BuyerAgentB for 761K, but “don’t worry”, sellers will go with originally accepted deal. But no fax.
SellerAgent finally calls hours later and says they received yet another offer for 765K from BuyerAgentB. So they have decided to accept final bids that night.
BuyerAgentA and client are furious, but client really wants the house. That night BuyerAgentA submits 767K offer, BuyerAgentB submits 768K.
Sellers sign a LOI (since Relo company was ready to sign that evening) that says something like:
“This letter is to confirm the current owners intent to facilitate the sell of their home through their relocation company, relo action to XXX For a price of XXX The current owners will request the relocation co execute an agreement with the buyers as early as possible on Friday, XXX”
Signed by Seller but not Seller’s spouse who co-owned and was not present. BuyerAgentA submits 772K offer the next day as a backup offer.
Seller’s consult lawyer, told LOI is non-binding, want to rebid again. This time assuring both buyers they will have Relo Company waiting to get full counteroffer contract signed immediately.
BuyersAgentB’s client wants to sue everybody for fraud.
BuyersAgentA’s client just as upset and also is consulting lawyer feeling original deal should have been honored.