Posted by Frank Chin on September 21, 2003 at 12:54:35:
I have made offers to sellers in the past, who made it clear to me that they are awaiting other offers, and evaluating them, before going foreward with the strongest one. It is agreed that the earnest money would be returned should my offer not be accepted.
So far so good, and no stonger language needed on the offer.
But, if my offer was accepted, and it goes to the P&S contract phase, and then I go ahead to:
1- Pay for a home inspection, about $200.00
2- Pay the mortgage application fee, about $350.00
3- Pay for an appraisal, about $400.00
Would I be competing with four other simultaneous contracts that you signed at this point?? Sounds like I am. Would I get any money back from you besides the deposit to make me whole.
What if I was in the process of selling my current home to move in to the one you’re selling, only to find that another one of your buyers beat me to the closing. What if my sale has a TOE clause?? Who’ll be paying my hotel bills??
What would you do if I recorded the P&S contract, and another one of the buyers proceed to closing?
If you made it clear to me that you are signing contracts with fours others, there’s no way I’ll go thru a contract with you.
I deal in rentals. In everyones mind, if I take a deposit, I am going forward with the party I’m taking the deposit from. No way am I going to take deposits from 4 others in case the first one falls thru (wish I could soemtimes), so I get to rent it out sooner. Beleive me, I had to return deposits on one or two occasions when credit didn’t check out, and I had near fist fights, and near lawsuits.
If you’re talking about the offer stage, that’s different.