Listing is “Sale Pending.” Make a Back Up Offer? Let’s be careful…

Bandon is a bit of a smaller market and buyer energy seems a bit pent-up because property inventories are (relatively speaking) in short supply.  And so, sometimes clients want ‘inside’ information about a pending transaction. And if they’re very serious about a particular property, we’ll process paperwork so they can make a  ‘Back Up Offer.”

First Position is an offer that puts the property in ‘Sale Pending’ status. Second Position is waiting in line with an accepted Back Up Offer to see if the First Position contract completes or not.

Most Agents completely respect when we seek more information.

But here’s the thing:

Seeking private information about a contract we are not party to is, putting it bluntly, almost unethical. As would it would also be for the Sellers to disclose what is, essentially, confidential information. Asking “How’s it going” solicits an opinion that could get someone in trouble.

By acceptance of a Back Up Offer, the Sellers have agreed to inform Back Up Offerors about the status of the First Position contract.  Here is copy of the the relevant text in the “Back Up Offer Addendum”:

14 (2) If Seller formally and completely terminates the First Position Transaction in writing with the First Position Buyer, Seller shall promptly notify Buyer in
15 writing that Buyer has been automatically moved to First Position (“Notification”)

Backup Offerors **need** to have the Sellers “formally and completely terminate” the prior agreement. Otherwise we really want nothing to do with it. Aggrieved parties could have grounds for lawsuits.

We’ve been made aware that, hounding the Listing Agent, like: emailing and texting / phone calling can be construed as an attempt to interfere. (No kidding.)

Having said so…

…most Agents are  willing to technically “bend the rules” to share what they feel is appropriate.

Out of respect, we (Kristin and I) really don’t want to interrupt the Listing Agent with uncomfortable questions to which they shouldn’t feel compelled to respond. This is especially true in situations where the First Position offer seems solid.

We’re grateful to have the opportunity to assist buyers (and sellers, naturally.) Communicating these notions with clients is exactly what they should expect and why they should seek independent representation.

We will always operatine to keep the separation of interests very clean and unimpeachable.

 

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