Once in contract

Well what if the terms of the contract are not met and the sale falls through? Seems that it is more logical that the property could no longer be for sale once sold?

If the contract falls through, for any reason, the property goes back on the market (as long as sellers want to). But for the time being, it can't be shown/advertised as "available" right? While "in contract" that is. At least, that's my understanding. Not right?

It is not true.

REBNY regs dictate that listings be updated, that is all.

You can't show it as "available", but you can show it as "under contract" and accept backup offers.

But this is complete transparency. It is in contract. It is not yet sold. What if buyer pulls out for whatever reason after two weeks. You think seller in that time should go through process and expense of un listing and the relisting?

Agree that this can lead to various shenanigans and wasted time (I.e. going to see somewhere and the being informed it is in contract).

Once in contract, the buyer is obligated to buy except with certain contingencies. On the other hand, the seller usually just need to return the full amount of the deposit and break the contract. You may try asking him for your lawyer's fee or other expenses. Good luck on that

>On the other hand, the seller usually just need to return the full amount of the deposit and break the contract.

Nope - the seller would be sued for performance and will have to move his ass out.

Vic has it backwards. Under the usual real estate contract, the seller can't force the buyer to close, but can only keep the deposit. The buyer can force the seller to close. It is not unusual for sellers to continue to take and even solicit back-up offers, particularly if there are open contingencies (financing, inspection, board approval, etc.). It would be silly and dishonest to not disclose the existence of the contract.

Buyer cannot be forced to buy, just lose their deposit. I believe that seller might be able to be forced to sell, if the buyer sues the seller and attempts to enforce the contract.

As for the OP's question of showings, etc. I think that the sellers can do what they want. It might be worth getting some limits set. Ex, can take back up offers, but cannot have additional showings (or at least no open houses). Often the sellers are doing that to put pressure on the buyer to sign the contract, but in this market, or with a contingent deal that may fall through, it makes some sense to solicit back up offers.

The situation is quite clear, the seller is holding the 10% deposit. If the buyer walks, he will lose the 10% deposit. It is a very steep penalty. A pretty good way to force the buyer to "buy". On the other hand, if the seller wants to walk, he would return the 10% deposit that was never his money to start with. The buyer can only sue the seller in court for damage. Many seller now put in a clause in the contract stating that the only remedy for the buyer in case of the seller breaking the contract would be just returning the deposit.

You're correct that "in contract" properties get pulled. I'm not an attorney but I do remember in brokerage class the teacher reminded us to do this.

However, with aggregator web sites, it's tougher and tougher to control the flow of data.

As an example, I have, as seller's agent, an apartment in contract in FiDi; buyers are board-approved, and it's closing next week. I still probably get a call a day about it, because even though I've flipped it in the computer system that agents use, and turned it off my ad in the Times, it doesn't automatically shut off everywhere else.

ali r.
DG Neary Realty

just one thing I think should be clarified...the seller is technically not "holding" the deposit. Rather, the 10% deposit is sent to the Seller’s Attorney along with the contracts and almost always deposited into the Seller’s Attorney escrow account. Although the deposit is held by the Seller’s Attorney, he/she is acting in their capacity as escrow agent and the Seller does not control how the money is released under that situation.

Any real estate atty's on the board to confirm this?

Distinction without a difference.

Urbandigs: you are correct.

Once in contract, seller has to sell (it can be sued for that, otherwise you would see plenty of contracts broken by sellers who found a better buyer), the buyer can walk away but loose his deposit (there is generally a statement that the parties agree that the 10% deposit is an acceptable compensation for that).
For new devs, they even stop entertaining offers for a week after the contract is out.

a law? there is a law that says if you go into contract then a property can no longer be advertised for sale? what law is that?

W67 can get out of contract for $9.99. Not a big deal. In and out. In and out. In and out. $60. Not bad.

Oh shit. W67 made $40k in the last last 3 in and outs. Can't swing my schlong wo making coin. Wtf do I know. Go team RE!

no such law, for many obvious reasons.

behooves seller with signed contract to keep showing in case buyer ends up not performing, loses job, cant get mtge after all, or cant get past a board in case of coops.

before signing anything goes.

"Many seller now put in a clause in the contract stating that the only remedy for the buyer in case of the seller breaking the contract would be just returning the deposit." If any buyer signed a contract with such a clause, fire your lawyers, and then call the bar association. That is not a "remedy" for breaking the contract, but a free option to terminate. For the buyer, the contract is illusory.

There is a difference between marketing a property in contract, and fielding back-up offers. Ali was probably told (rightfully) in real estate class to immediately mark properties in contract because the broker does not want to be found to have interfered with a contract or induced a breach if the deal does not close -- the third party has no liabiity limitations regardless of what the contract says.

If there is an accepted offer on a property, but it's not yet in contract, can other potential offers be made; is it unethical for the seller to continue to elicit a (better) potential buyer, or for a new buyer to approach a property with an accepted offer. I am commenting from the perspective of the 2nd buyer - realtor wants to continue to accept offers, and I don't want to waste my time if this isn't done.

[Sigh] Some days, I think I am the only real estate agent in New York City who actually knows anything about the law pertaining to real estate.

It makes me very grumpy. I'm sorry, but it does.

The original poster UE98 is exactly correct. Now, kiddies, what law makes this so?

Anybody here know but me? I'll sell you a hint for $5. You can send me money via PayPal.

But I really have to ask----if you're in this business, how can you not know this?

kharby i must admit, I wasnt aware of a law on this, only what jim_hones said above...that rebny mandates all members accurately update their listings every 14 days. Of course, we know that doesnt happen and there is no policing agent of data quality in Manhattan at the moment. Not to the extent some other MLS's go, issuing increasing violations to those who are responsible for data violations.

But I am eager to learn what u have to say next

kharby2
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[Sigh] Some days, I think I am the only real estate agent in New York City who actually knows anything about the law pertaining to real estate.

It makes me very grumpy. I'm sorry, but it does.

The original poster UE98 is exactly correct. Now, kiddies, what law makes this so?

Anybody here know but me? I'll sell you a hint for $5. You can send me money via PayPal.

But I really have to ask----if you're in this business, how can you not know this?

(sigh), but I call bullshit. unless you can prove it.

specifically, the part of the law that says an agent can no longer show an apartment to someone once it is in contract. share.

and let's not redefine what a law is please.

i wonder if kharby typically over promises and under delivers with his clients too.