Saturday 15 February 2014

what is the seller's obligation to the agent or buyer if the asking price is met?

Question

what is the seller's obligation to the agent or buyer if the asking price is met?



Answer

There is no obligation to the buyer. An asking price is a benchmark provided as part of a solicitation of offers to buy. It is not an offer to sell at that price. As to the agent it is a little more complicated. Theoretically once a willing buyer has been obtained at or above the asking price, the listing agent has fulfilled their obligations. However, the buyer may not qualify for the loan, or may not accept the condition of the property and withdraw from the contract, etc. Therefore it is generally held that the seller can counter the offer at a price above asking, and/or keep the agent working on finding a better buyer, including one who will pay more, until the deal closes, or at least until contingencies have been removed on a sale contract. The one exception is where the seller lets a listing agreement expire or cancels a listing agreement after a buyer has been obtained who offered the asking price. At that point the court will consider whether the offer would have resulted in a closed deal had the seller accepted the offer instead of asking for more and might award the agent their commission.



Answer

It would really be helpful to know more facts, for example, a description of the deal problem that has arisen or might be arising. However, I can kinda guess and offer a few words of wisdom which may or may not answer the question. A buyer's "meeting the asking price" is only part of what's required to conclude a deal and place the buyer and seller "in contract." First, making a full-price offer is exactly that; only an offer. An acceptance is necessary from the seller before the parties are under an obligation to one another to complete the sale. The seller is not obliged to accept an offer. Further, the seller may expect more than just meeting his asking price. The seller may have other requirements such as timing of the closing, financing arrangements, etc. etc.



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