Sale at 160 East 65th Street #29D

Plevy, Sorry to hear that. We have been talking about oversupply and very slow market in this board. Are you not finding many other similar choices?

My buyer wants this building specifically.

Why does your community stand for this behavior? An answer within 24 hours or you withdraw the bid, obviously subject to your client agreeing. If your client wants to be run over roughshod, let them.

I think the seller wants more money or the broker got a direct buyer at a late stage. An honest way would have been to just ask the bidders to revise their bids due to too many bids. At the end of the day, bids are not binding in NY which encourages this type of behavior.

What she did was string us all along with requests for a few more days, a few more days. Meanwhile, she sent a contract out and never told the other bidders that the seller accepted an offer. She lead us to believe the seller was still considering or that there was some kind of family problem. When my buyer decided to increase his offer by $30,000 that's when the truth came out and she told us a contract had been signed already.

Can you complain to rebny? Assume it is some type of ethic violation.

That blows. It has happened to us all in one form or another...but it is still bitter. Sounds to me like a Dottie-Pam conversation is needed, but I'd start by going to your manager and having him/her reach out to seller's broker's manager. 30, what do you think?

ali r.
{downtown broker}

A buyer making a complaint to NYS Dept of State will almost always result in someone getting a visit which will make them uncomfortable. REBNY/in house inquiries usually have zero ramifications.

A buyer can not prove any harm as it is simply a case of buyer not responding to an offer. I have heard of more than one contract being sent out which is much worse and with the buyer being able to prove harm - fees, not bidding on other properties etc. So seems much more of a manager conversation to encourage more transparent behavior. I would have thought that REBNY will issue some ethics guidelines.

Sorry, seller not responding to an offer.

This is unethical but not illegal as in New York bids or offers are not binding until a contract is signed and we see all the time sellers negotiating several contracts in parallel. Good luck!

We contacted her manager--twice. The manager didn't even give us the courtesy of a reply.

Plevy, While the behavior is clearly not professional, I would think that if the offer does not get accepted quickly, the buyer can move on and withdraw their offer. There is no economic harm done to your client. At the end of the day, there is no way for seller to know that your buyer would have followed through by signing a contract as offers are not binding. They just accepted what was presumably a higher offer.

That is correct and had she told us a better offer was accepted and contract sent, he would have moved on or increased his offer in an attempt to make a deal. Instead, she lead us to believe that the seller had not made a decision. She is required to deal honestly and fairly with all parties. She clearly was not honest.

What are the rules for conducting a "best and final" sales process? Does REBNY, NAR or NYS law have requirements or recommendations for such a process and is the broker required to provide details on how the bidding process will be managed and whether the broker can continue to solicit bids after the "best and final" deadline?

By law, retailers cannot advertise a fire sale unless there was actually a fire. Same with a "going out of business" sales or "lost our lease" sales. I know that a licensed auctioneer can withdraw an item for sale at the last minute under certain circumstances but if it happened too often, I think this would be considered a big ethical problem.

I think “honest and fair” dealing is not violated here. It would have been if your seller wanted to increase the bid after hearing they did not make best and final. The seller’s broker was just not providing you enough information. That is just now showing good professionalism. It is no different from going for an interview and not hearing back. No one at the receiving end likes it but there is no law against it. People assume that they did not get the job and look for another one.

The broker has a fiduciary duty to the seller. if they didn't get the best price so that they could do a direct deal then they violated that fiduciary duty.

Just wondering why she lied about the status instead of just saying, we accepted an offer and contract is out.

Just wondering why she told everyone no decision has been made yet when in fact an offer was accepted with a contract out. When my client decided to increase his offer--that's the precise moment when she told us a contract was signed already. Had she told us the truth, my client's higher offer would have been presented to the seller.

What if she truly respected the best and final process and your client did not make it? Why did not your client bid truly the highest they were willing to pay when asked for best and final. It is time for your client to move on.

The question is--why did she tell us that no decision was made, she needed more time etc etc when in truth, an offer was accepted and contract sent? Why not say we accepted another offer?

I've been on the other side, many times. I thank them for the offer but let them know that at this time the owner has chosen another buyer. Why string people along for 10 days?

From her point of view, she told everyone to present highest and best and those should have been presented. Telling people that someone else's offer was accepted would just encourage further bidding, and then possibly the "winner" would realize they were actually the loser (i.e. they had overpaid) and then all the deals would unravel.
NB the above should not be construed as me agreeing with the way it was handled.

Correct, someone may have bid higher, the way this was conducted insured that wouldn't happen.

If I am an owner who is looking to sell, I would increase my price 10 percent knowing that there may be a desperate spurned buyer.

Spurned does not necessarily mean desperate.