Feeling cheated | Imamother

amother

Ecru

Tue, Jul 12 2016, 5:33 pm

I'm not sure if this is the place to post but I'm so upset. We've been house hunting for a long time. after some price negatiating we got an accepted offer on a house. I wanted to bring in a specific inspector so had to wait a week for that. In the meanwhile our lawyers worked out a contract. After spending $$$ on an inspector and lawyer they said they got a better offer and are ready to sign a contract with the other people. They are refusing to reimburse our attorney or home inspector costs. I feel so cheated.

amother

Blue

Tue, Jul 12 2016, 5:42 pm

amother wrote:

Most people bring in an inspector after the offer. And then have the sale contingent on the inspection coming out good.
In a sellers market you have to be quick. A week is a long time.

amother

Slateblue

Tue, Jul 12 2016, 5:45 pm

amother wrote:

What does your lawyer say? Shouldnt he/she have worked out the deal so that sellers cant accept other offers in the interim.

amother

Ruby

Tue, Jul 12 2016, 5:56 pm

If I was selling a house and accepted an offer, I would continue showing the house trying to get a better offer until a contract is signed. However, if I do get a better offer I would feel achrayis to reimburse any expense incurred by the first buyer.

amother

Ruby

Tue, Jul 12 2016, 6:32 pm

amother wrote:

we only brought in an inspector and involved our attorney after they said they accepted our offer. That's why I'm so upset

I don't blame you for feeling bad. Just wondering what would you have done if after they accepted your offer, a seller whose house you saw a month ago and didn't accept your offer, called you and said they are willing to accept your offer. Lets also assume that you like the first house way more. Would you walk away from the second seller after they might have turned away potential buyers?

amother

Salmon

Tue, Jul 12 2016, 6:42 pm

Yes, I understand that you feel cheated, but now you have learned (the hard way) that, in real estate, there is no real acceptance of the offer until the ink is dry on a contract. Going forward, make sure that you have an inspection contingency in place so you can sign the contract and still have time to back out or opportunity to negotiate price down if your inspector finds any issues.

And it works both ways - so long as your contingencies have not yet been released, you can keep seeing other houses and decide to cancel the contract. Honestly, if it's such a buyer's market, I am surprised that you attorney did not advise you to get the contract signed and to do inspections during a contingency period. Though it may be that the market is so hot that offers with contingencies don't get accepted (as is common where I live now. Oy.)

amother

Aqua

Tue, Jul 12 2016, 7:43 pm

This happened to me as well. Our offer was accepted, we did an inspection, finalized the price, and the sellers sent the contract to our lawyer. Then their real estate agent went out of his way calling people to tell them that this was their last chance if they wanted to make a better offer. Sure enough someone took him up on it and the sellers decided to take the higher offer which was too much for us to match. We were also not reimbursed for any part of our expenses. Later we found out that the deal didn't work out because the buyer couldn't get financing so they ended up selling to someone else for only slightly more than what we were going to pay. It's hard not to be bitter but we have to assume it was for the best and one day we will find the right house for us.

amother

Ecru

Tue, Jul 12 2016, 7:57 pm

I understand that this is business but these were frum people and they didn't reimburse us at all. After my husband called them up all angry they agreed to pay the inspectors fee. I think we are owed at least inspection and lawyers fee. But they aren't taking our calls for the past 3 days

mummiedearest

Tue, Jul 12 2016, 8:18 pm

op, I'm sorry for your inconvenience/financial loss. it's common to have an inspection once in contract. it's fine to inspect before contract, but buyer and seller are both capable of backing out for any reason before contract is signed. this is something understood by both parties, and the buyer paying for an inspection is not the seller's responsibility. you could just as easily have pulled out based on the inspection, and you'd still have to pay the inspector. inspection fees are the buyer's cost, not the seller's. this is why a lot of people don't inspect until in contract.

shacn

Tue, Jul 12 2016, 10:24 pm

amother wrote:

Most people bring in an inspector after the offer. And then have the sale contingent on the inspection coming out good.
In a sellers market you have to be quick. A week is a long time.

I am a paralegal for this kind of lawyer

Just to give you a heads up for future and for future home buyers who are reading this, there are lawyers (such as the one whom I work for) that only charge their fee on the day of closing, because this stuff happens all the time. So sorry this happened to you!

amother

Orange

Wed, Jul 13 2016, 1:46 am

You have every right to feel cheated, but your feelings and the law are different. They did nothing wrong, and as others have said, you could also have pulled out at this stage, leaving the sellers in the same situation. That's how these things work.

I hope you find the right house soon.

amother

Khaki

Wed, Jul 13 2016, 5:13 am

As a matter of interest, a relative of mine had a verbal agreement with another frum family regarding the purchase of a house.
Some days later my relative received a call that all bets are off because they got a higher offer. My relative was upset and asked to go to a local beit din. They both agreed to abide by the psak. They were told that the verbal agreement holds.

Mrs Bissli

Wed, Jul 13 2016, 5:56 am

Sorry to hear, I know it's not a consolation but it's such a common practice we even have a word for it--the practice is called gazumping, and you're gazumped.

amother

Ecru

Wed, Jul 13 2016, 6:32 am

So that's where we're up to now. They finally got back to us and said we should speak to thier Rav. I'm thinking this is gonna turn into a din Torah. I just can't believe they think they did nothing wrong by telling us they accept our offer and then signing with a higher one. So upset

amother

Salmon

Wed, Jul 13 2016, 5:50 pm

amother wrote:

In American law oral contracts can be enforceable as well, but generally not for real estate deals.

I would also expect another frum family to be firm in the acceptance of our offer to purchase, because I would expect them to honor their verbal acceptance - but I would still get their signature on the contract. In our area, when the offer is accepted the contract is signed right away, as in, you will get the signed acceptance within the hour of getting the phone call.

amother

Ecru

Thu, Jul 14 2016, 3:38 pm

So Dh just spoke to our Rav cuz theirs never called. He said it doesn't sound like we have a case but he'd call thier Rav anyway. Any ideas? I know you all agreed that what they did was wrong. So why isn't this a case for din Torah.