Real Estate is not always what it appears to be on television. Consumers love seeing luxury properties, before and after renovations, tough negotiations, and high commissions. Don't get me wrong, these are all great! What they don't show is the behind-the-scenes of keeping the deal together through the close of escrow. That's right, the deal isn't over just because a deal was made and the offer was accepted... that's when the real work begins.
After an offer is accepted, there is an Escrow Period, which is the time period to facilitate the transaction. During this period, the buyer executes any due diligence, the lender finalizes the loan, the escrow/title company draws up the paperwork to transfer the title to the new owner and finally gets recorded with the city/county recorder. We always hope for a smooth transaction and we connect our clients with the best contacts and vendors to do so. However, it's pretty normal to encounter some bumps and bruises during this period, and that's where having a skilled savvy real estate agent is imperative to alleviate as many of the stresses as possible.
Here Is a Story About a Situation With Two Ratified Offers on the Same Home, and How My Buyer Clients Ended Up Winning
My clients put an offer on a home, there were four offers received, and we were tied with the top offer. The seller felt inclined to accept the other because of better terms. It was a tough loss, but we moved on and we decided not to take the backup position. A few days later, the listing agent calls me to let me know the current offer backed out. So we wrote a fresh offer and resubmitted the same price and terms, and the seller signs to accept and ratify the contract. A few minutes later, we find out the other party never signed a cancelation agreement, and the original party no longer wanted to back out. There were two mistakes here: (1) not obtaining a signed cancelation agreement and (2) signing and ratifying our resubmitted offer contract. Now, the seller's agent has 2 ratified offers, and the seller is legally obligated to sell the home to both parties.
Talk about a stressful situation for both sides!
While the selling broker was encouraging us to voluntarily cancel our contract, we knew we had other rights. My clients decided to follow professional advice and execute their purchase contract terms to-the-T. Starting with the Earnest Money Deposit all the way through the removal of contingencies and closing. Though we encountered a couple of unnecessary roadblocks while performing our diligence, we continued to push through every step with perseverance and fortitude.
Then, about halfway into the deal, the original party's situation changed causing them to voluntarily back out and cancel their contract. Huge win and a huge relief for my clients who finished off the deal seamlessly to close escrow, and get the keys to their new home.
Just another day in the life of a real estate professional.