Thread: Is this normal?

Originally Posted by ec2929

The sellers have accepted our contingent offer (sale of our current house) yesterday. On MLS, the house they are selling is still listed as Active. It's been a full day. Is this common practice?

Each MLS's rules very considerable on this point. First I would like to say that 1 day is not much time to have pass by without the listing being marked pending. Sometimes data input can lag 2 or 3 days. For most agents it gets pushed to the back burner on the priority list.

If after 3 days it has not been marked pending then what you have is a situation where the agent most likely has plans to keep marketing the property. If this is in conflict with MLS rules or the contract then you need to have your agent speak to the other agent about putting the home in pending status. If this is not in conflict with the contract or with the MLS rules then that is just the nature of the game.

It is in the best interest of the seller to continue to market the home because the buyers home may not sell. The listing agent should be doing everything in their power to procure a buyer that is ready to close. As long as there are contingencies still floating the listing agent has not procured a buyer that is ready to close, therefore they should continue to market the home as long as it does not infringe on the contract or break MLS rules.

James is correct, the local MLS rules should be the guideline in this situation and your agent will be able to find out specifics.

In my experience a 'home sale contingency' on the part of the buyer is one of the most worrisome for sellers. Understandably so. Even in a very good market there are all kinds of problems that can arise... so it's seen by many as a risky proposition. It's not uncommon for listings with these types of contingencies to be marketed aggressively and backup offers solicited... just in case.

Edit to add: You may also double check the language in your ratified contract. IIRC, the home sale contingency in some state contracts specifically states the property will remain active in the MLS. But again, this will vary from state to state.

Something else to keep in mind is that some MLS systems allow different types of active properties. It could be "Active accepting backups" or something like that. This is usually only visible to real estate agents accessing the info via the MLS.

Originally Posted by Mike Taylor

Something else to keep in mind is that some MLS systems allow different types of active properties. It could be "Active accepting backups" or something like that. This is usually only visible to real estate agents accessing the info via the MLS.

Exactly... in the North Texas MLS we have four different 'active' statuses: Active, Active Contingent, Active Option, and Active Kick Out

The MLS really is secondary to this situation. What does it say in the purchase agreement? Most likely there is a Contingency Addendum that has the language of how the contingency will be handled.

In Minnesota, you would need to sell your home in order to remove this contingency. Until that happens, the seller can still market the home and accept any offers. If they do receive a better offer or an offer that does not have a buyer home sale contingency, they would then send notification to you and you would have so many hours (24-48) to remove the contingency or cancel the purchase agreement.

As far as the MLS, the home is still active and the listing brokerage must let showing agents know that there is a contingent offer accepted.

Again, make sure you understand your purchase agreement.

Absolutely this is a common practice here in Minnesota. Technically, even though they have accepted an offer, the home is only sold contingent. As a result, the sellers have to keep the home active on MLS to look for other non-contingent buyers.

Here in Minneapolis, a seller can accept a contingent offer and "call the contingency" at any point in time. Depending upon the time frame of the contingency, the buyer has to sell their home with that time frame (which never happens of course.)

Long story short, I would congratulate you on getting the home. Realize however that the home is still for sale. And the seller is still allowed to market the home. This means of course, keeping the home active on the MLS. I hope this helps!!