Invalid Purchase Agreement?

[mwilliams]

What is the name of your state? MI

I relocated to the West Coast two years ago and having been trying to seel my home in Michigan for all that time. Recently, I received an offer and made a counter offer. Three days later, the real estate agent for the prospective buyer faxed over a Purchase Agreement that he signed stating what his clients would pay. However, his clients had not signed the agreement. In good faith, we accepted the offer. Now, he has not returned a single phone call from our agent in about a week. Do I have any leg to stand on here? This agent is obviously not operating in good faith.

[JETX]

Originally Posted by mwilliams

Do I have any leg to stand on here?

Nope... an unsigned OFFER is not a valid contract.

[PghREA]

Originally Posted by mwilliams

What is the name of your state? MI

I relocated to the West Coast two years ago and having been trying to seel my home in Michigan for all that time. Recently, I received an offer and made a counter offer. Three days later, the real estate agent for the prospective buyer faxed over a Purchase Agreement that he signed stating what his clients would pay. However, his clients had not signed the agreement. In good faith, we accepted the offer. Now, he has not returned a single phone call from our agent in about a week. Do I have any leg to stand on here? This agent is obviously not operating in good faith.

The agent can not force the buyer's to sign the offer. It is possible that the buyer's have reconsidered and decided not to buy your home after all or they could be looking around for a lender. Until both signatures are on the purchase agreement, you have nothing.

[tranquility]

What is an "agent" again?

[PghREA]

Originally Posted by tranquility

What is an "agent" again?

An "agent" acts on someones behalf but, you still do not have an agreement of sale until both the seller and buyer sign that agreement.

[justalayman]

I believe tranquility was reffering to a situation where an agent has the legal right to sign for you, such as a power of attorney.

agent n. a person who is authorized to act for another (the agent's principal) through employment, by contract or apparent authority. The importance is that the agent can bind the principal by contract or create liability if he/she causes injury while in the scope of the agency. Who is in agent and what is his/her authority or often difficult and crucial factual issues

Most typical RE contracts that I have seen do not assign an agency relationship of this type. It is possible but not typical.

[tranquility]

My question got to the point there are many issues opened up by an "agent" signing and returning the offer made by the OP.

We have a lot of real estate "agents" (with full understanding of their actual and/or apparent limits of their agency) pass through our office and many are not the sharpest tools in the shed. However, I don't think many of them are so dull as to sign and fax back an offer to the offeror. What's the point? Why would they do something like that?

While it is very likely the OP does not have a valid contract for sale, (Is it reasonable to believe a real estate agent is the actual agent of the buyer? [no contract with buyer]And, is the agent the offeree? [no contract with agent]) if he has damages isn't someone on the line for them?

[justalayman]

I guess the first question I have is although I do read where the OP states:

the real estate agent for the prospective buyer

I wonder if the "buyers" agent was actually a buyers agent and not merely a sellers agent as allowed in the RE sales agreement.

Not sure where the OP wants to go with anything. I would look at it as a deal in the throws of negotiation with no deal accepted at this point and continue to market the house. If the OP wants to be sure he is free from any problems, send a rescission of the offer to the agent and the clients to make it clear there is no deal on the table. (the old CRRR and that overnight stuff (if used) gets there******************************************....overnight). If the buyer actually intended it to be a contract, they will step up and settle the problems.

The agent would not be the offeree unless the agents name is inserted in the appropriate line of "buyer".

Now if the agent actually has a limited power of attorney, the deal is on.(highly doubtful)

Send a letter telling them to sh** or get off the pot. There are others waiting in line.



but ot the question of "why would he do this" Because he knows no better.and since (if ) the agent does not have a POA, there are actually no issues because he could not bind the buyer to a contract.

[tranquility]

"I wonder if the "buyers" agent was actually a buyers agent and not merely a sellers agent as allowed in the RE sales agreement."

In CA, each party must sign an acknowledgement if there is a "dual" agency by the agent. This is not that unusual as the listing agent is often the one who finds the buyer.

I agree the mess is a little tangled and points to the possibility damage to the OP. If I were him I would clarify the situation as well. I forget the term for the process to clarify an anticipatory breach, but he should do that.

"The agent would not be the offeree unless the agents name is inserted in the appropriate line of "buyer"."

I agree. I don't think the offer was made to the agent.

"and since (if ) the agent does not have a POA, there are actually no issues because he could not bind the buyer to a contract."

What about apparent authority not disputed by the buyer? Besides, the OP doesn't care who pays his damages, just that they get paid.