If A is selling to B,why is C calling me to complain about this?

[realestatefla1]

I`m in the midst of attempting to figure out what`s going on with our "Pending Sale" in Davie, Florida. Our seller (A) accepts an offer from (B) two weeks ago. Inspections are completed,appraisal finished,awaiting loan commitment that is due on Wednesday.

Today, out of nowhere comes (C`s) Realtor complaining to me that (A) accepted (C`s) offer three months ago and (C) has been trying to close.

I`ve had the listing for only 5 weeks, the seller never told me about (C) or the other agent.They did reveal to me that they were attempting to do a "For Sale By Owner" without much luck and certainly no executed contracts.
Agent C:My buyer and I dealt with Seller (A) and had a verbal contract.. We`ve been attempting to get financing for weeks. This is my clients home to buy!

Me; How so? Do you have an executed contract? Seller A never mentioned anything about a verbal contracts. How can you say that? What the heck is a verbal contract,anyway? Do you mean offer?

Agent C: Well, the seller told me that if I could secure proper financing for (C) he`d sell the house to my buyers, I called the seller two days ago, informing him we finally got financing.... This is our house!!

Me: What did the seller tell you?! If you look at the MLS the house has been pending for a few weeks now... I have a written contract, signed by both parties. It`s all legal and properly executed..
Agent C: A verbal contract is just as good, the seller needs to sell the house to my client!

Me: Guess What?! Since I`m representing seller (A) now, I don`t know anything about a verbal offer, or you`re buyer. This home is pending and will be closing shortly.. Please tell Buyer (C) my deepest apologies, better luck next time!!


With that I call Seller (A) who I inform about this "Turn of events". Seller (A) laughs and tells me that these buyers and agent C kept knocking on his door with all sorts of hair brain contingencies including allowing Buyer (C) to live in the house forh 6 months free rent, so they could have enough money for closing!

He went on to state that after the 3rd or 4th time, he just told the anxious agent to get the buyer properly financed and then they`d talk! At this point, he`s cracking up over the phone and has his wife pick up the other receiver in their home.. She starts telling me that Agent C was the son to buyer C and between the group,nobody understood the word "NOT SELLING".. She asked me to call Buyer (C`s) agent and remind them that they were supposed to have given Seller (A) an escrow check for $500 just to get the offer started 3 months ago..

I called Agent (C),told him i spoke to the seller who asked me to remind them of the $500 escrow check that was supposed to have been done months ago. His response was that his Family forgot,but a verbal is still a valid contract !..... I swear it must be a Full Moon....

I pray (C) finds another home and maybe a better agent!

[TJ2007]

My atttorneys constantly remind me that in real estate in order to be binding IT MUST BE IN WRITING
IT MUST BE IN WRITING
IT MUST BE IN WRITING

[OregonLO]

its going to be A's word against C's word and I'm pretty sure A is going to win that one regardless of what happens. Tell your client not to worry...haha. Some people, they are weird.

They should have secured financing before they tried to buy a house then they could have wrote a legit offer in WRITING and gotten the house. Too bad for them, keep looking for a new property.

[Merkaba]

Um its called statute of frauds. In South Carolina real estate transactions have to be in writing or there is just no contract.

[FlaGal]

Gaines & Coleman "Florida Real Estate Principle, Practices & Law":

Laws today specify that real estate contracts must be in writing to be enforcable, except in two specific instances:

1. When an oral contract has been formed and the buyer has paid part of the purchase price and then has either taken possession of the property or made some improvements of the property

2. If both parties have fully performed as promised.

In these two situations, the resulting legal relationships are precisely the same as those that would have existed had the contract been in writing. In either instance, neither party could later rescind or recover what he or she had before contract with the other by claiming the oral contract was not valid. Failure to comply with the statutes of frauds may not be illegal, but it usually would make a real estate purchase and sale contract unenforcable (it would not stand up in a court of law).

[JChristin]

Agent C: A verbal contract is just as good, the seller needs to sell the house to my client!



Should "Agent 'C' have the stupidity to contact you regarding this issue, I'd suggest that he return to real estate school and restudy real estate law.

[chrishummel]

The sad thing is this isn't the first or last time this will happen. Congrats on the sale!



(http://www.hummelcompanies.com)

[StuartDuPont]

Sounds like lots of fun.

[gjtrafl]

All of these stories will make great speaking points when you encounter other FSBOs. So many of them go bad or are handled wrong which ends up costing everyone time/money. Professional representation is the way to go!

[Patrick Mc]

You're right. Excellant stories for FSBO's. A mentee of mine called yesterday. She's worried about inspection contingencies on a pending listing of hers. Turns out, the buyers never paid the deposit that is due when the offer is submitted. It still amazes me how many agents don't really understand the Agreement of Sale (new & experienced).

No deposit. No contract. Nothing else matters. Agents (especially new agents) really need to stop and think.

Yesterday, a buyer contacts me through my web site. She wants to know if there is an offer on a specific listing in Quakertown. As I learn, she and her fiance submitted an offer and were given verbal acceptance. The sellers now live in a remote part of North Carolina, and with recent storms it was several days before they received the agreement of sale that had been "overnighted". In the meantime a better offer comes in. The sellers sign the second agreement and the listing agent communicates this to the first buyers agent. Buyer's agent doesn't tell the buyers and won't return their calls.

The buyer's came to me for help. They thought they had a home to move into (they are relocating) in June. They find out from me that they don't. The seller had given these buyers a verbal acceptance, but signed another offer, which they have the right to do. The buyer's agent is at fault her for not communicating this to her clients.

In my opinion there are too many issues like these. It makes us all look bad.