Question on Conditional Sale of my home

[newtsie]

I`m currently marketing my home independently and I have secured a conditional sale on my property. The conditions are financing & most importantly that the potential buyer has to sell her home by a certain date to close our deal.

If I were to get another party who is interested in putting in an offer before my current buyer satisfies the conditions, I have a 72 hour clause where my current buyer has to waive her conditions and complete the sale. If she can`t waive the conditions and close on the house within 72 hrs, the contract is void and I can pursue a deal with the new party.

So my question is, if I have another party who is interested in putting in an offer, how much information can I divulge to them about my conditional sale? Can I tell them how much my current offer is for?

I also have a feeling that my current buyer would not be able to satisfy the conditions within 72hrs (ie. she wouldn`t be able to afford to buy my house & hold hers at the same time). Could I share this information with the new prospective buyer to reassure them if they were to put in an offer with limited conditions, that they`d have a good chance of scooping the house?

Can I also tell the new party the time frame for when my current buyer has to meet her conditions? Ie. "My current buyer has until Dec 1 to satisfy conditions and close the deal. If the conditions aren`t satisfied by that date the house is no longer conditionally sold..."

I just need some guidance on what I can divulge if I were to be put in this situation. Thanks for your help.

 

[timk519]

These kinds of questions are what lawyers are for. I`m sure RE agents have lots of restrictions on what they can tell competing bidders, but the restrictions on the actual owner are probably different. You don`t want to find out the hard way if you`ve crossed a line. Better yet, have your lawyer talk to the other bidder.

 

[newtsie]

QUOTE (timk519 @ Oct 30 2007, 01:21 PM) These kinds of questions are what lawyers are for. I`m sure RE agents have lots of restrictions on what they can tell competing bidders, but the restrictions on the actual owner are probably different. You don`t want to find out the hard way if you`ve crossed a line. Better yet, have your lawyer talk to the other bidder.

I spoke with my Lawyer and she wasn`t too sure...she`s an expert in terms on understanding the contract, not on this type of issue. She thought that a RE agent would have more insight.

 

[GarthChapman]

Great advice from timK519. I would also add that you use your values and conscience as your guide (but do ask your lawyer for his/her advice also). My lawyer in past has given me some really good advice in how to handle this.

In the same situation I have in the past told the prospective Buyer that I have accepted a conditional offer that contains a 72 hour clause. I didn`t divulge anything else.

Remember that if you accept the new offer and it does not complete that you will have had given up a bird in the hand and ended up with a bird in the bush. My practice is to try to satisfy myself that the new offer is pretty solid. I usually would want the new Buyer to have written confirmation that they qualify for the financing required, then I usually just have to be confident that my property will pass the Building Inspection.

Hope that helps a bit.

 

[newtsie]

QUOTE (Chaps @ Oct 30 2007, 01:42 PM) Great advice from timK519. I would also add that you use your values and conscience as your guide (but do ask your lawyer for his/her advice also). My lawyer in past has given me some really good advice in how to handle this.

In the same situation I have in the past told the prospective Buyer that I have accepted a conditional offer that contains a 72 hour clause. I didn`t divulge anything else.

Remember that if you accept the new offer and it does not complete that you will have had given up a bird in the hand and ended up with a bird in the bush. My practice is to try to satisfy myself that the new offer is pretty solid. I usually would want the new Buyer to have written confirmation that they qualify for the financing required, then I usually just have to be confident that my property will pass the Building Inspection.

Hope that helps a bit.

Great advice, particularly on the financing piece...thanks.

One of your comments just spurred another thought.
Building inspection...my home was built in 2003, am I required to allow a building inspector? My existing offer didn`t ask for one. Not that I have anything to worry about, Im just wondering if I have to do it if they ask.

 

[GarthChapman]

My understanding is that you are only obligated to do what is in the Contract, so then it becomes a business decision for you to make.

 

[samwei]

QUOTE (newtsie @ Oct 30 2007, 01:08 PM) I`m currently marketing my home independently and I have secured a conditional sale on my property. The conditions are financing & most importantly that the potential buyer has to sell her home by a certain date to close our deal.


I just need some guidance on what I can divulge if I were to be put in this situation. Thanks for your help.

Since you are the owner of the home and marketing your home independently, and not through a real estate company, you are free to divulge anything you choose to the second party, and not be in breach of any legal requirement, unless it were written into the first contract that you are not at liberty to divulge any information of the offer to others. So if it`s not written as such, you are not in violation of a confidentiality agreement.

As for a home inspection, the buyer pays for the inspection and not the seller.

Sam

 

[newtsie]

Another question. My house is listed for 395,000, and after negotiating with the buyer`s agent, our conditional sale settled at 375,000.

The 72 hour clause is until December 1st. My current buyers have until then to sell their existing home, to satisfy the last condition of our sale. I can continue to market my home and entertain more offers. I haven`t received any since I conditionally sold to my existing buyer.

My question is, can I lower my list price down to $380,000 between now and December 1st? By doing so, I may be able to attract other offers.

Nowhere in my existing contract with my current buyers, was it stated that if I continue to market my home I must do so at 395,000

Thanks in advance for your perspective

 

[joannelson]

QUOTE (newtsie @ Oct 30 2007, 12:08 PM) I`m currently marketing my home independently and I have secured a conditional sale on my property. The conditions are financing & most importantly that the potential buyer has to sell her home by a certain date to close our deal.

If I were to get another party who is interested in putting in an offer before my current buyer satisfies the conditions, I have a 72 hour clause where my current buyer has to waive her conditions and complete the sale. If she can`t waive the conditions and close on the house within 72 hrs, the contract is void and I can pursue a deal with the new party.

So my question is, if I have another party who is interested in putting in an offer, how much information can I divulge to them about my conditional sale? Can I tell them how much my current offer is for?

I also have a feeling that my current buyer would not be able to satisfy the conditions within 72hrs (ie. she wouldn`t be able to afford to buy my house & hold hers at the same time). Could I share this information with the new prospective buyer to reassure them if they were to put in an offer with limited conditions, that they`d have a good chance of scooping the house?


Can I also tell the new party the time frame for when my current buyer has to meet her conditions? Ie. "My current buyer has until Dec 1 to satisfy conditions and close the deal. If the conditions aren`t satisfied by that date the house is no longer conditionally sold..."

I just need some guidance on what I can divulge if I were to be put in this situation. Thanks for your help.



Oops first time on here!! I would divulge only that there is a 72 hour clause on the property and not the amount of the offer, as they could bring you more. If it is lower than what you would want to accept, you can counter the offer. Prior to enforcing the 72 clause on your current offer, I would ensure that the second offer that you are accepting is very strong. For instance not another `sale of buyers` home` condition and confirmation that the `new buyers` have been preapproved financially. I would also consider the size of the down payment on accepting the new offer.

 

[RedlineBrett]

QUOTE (newtsie @ Nov 9 2007, 08:33 PM) Another question. My house is listed for 395,000, and after negotiating with the buyer`s agent, our conditional sale settled at 375,000.

The 72 hour clause is until December 1st. My current buyers have until then to sell their existing home, to satisfy the last condition of our sale. I can continue to market my home and entertain more offers. I haven`t received any since I conditionally sold to my existing buyer.

My question is, can I lower my list price down to $380,000 between now and December 1st? By doing so, I may be able to attract other offers.

Nowhere in my existing contract with my current buyers, was it stated that if I continue to market my home I must do so at 395,000

Thanks in advance for your perspective

You can lower your asking price to whatever you like. Regardless of any offer you accept now the terms of your original deal will not change - that buyer has 72hrs to waive their SOBH condition once you show them the new accepted offer.