What are your thoughts? Has this happened to you?

[LohaLonnie]

Just a quick question on how to proceed. We have signed a contract in order to purchase land. Our realtor gave the signed contract to the sellers' agent to look over and sign. The next day before the 2 hours were over on the sellers to sign - the sellers' agent said they had a cash offer. Of course we were stunned because we have been working with them for a weeks. The crazy thing is the listing is still posted on MLS, Realtor, tax accessor site, and the sellers' agent's own site as active and not pending. We are going into our second week of the listing still showing as active. We hope the agent didn't tell us there is a bogus cash offer to back us away from purchasing the property. Our realtor has contacted the sellers' agent and just crickets. How can we proceed on going into contact or just making sure there was a legitimate cash offer. 

[hegemony]

3 hours ago, LohaLonnie said:

Just a quick question on how to proceed. We have signed a contract in order to purchase land. Our realtor gave the signed contract to the sellers' agent to look over and sign. The next day before the 2 hours were over on the sellers to sign - the sellers' agent said they had a cash offer. Of course we were stunned because we have been working with them for a weeks. The crazy thing is the listing is still posted on MLS, Realtor, tax accessor site, and the sellers' agent's own site as active and not pending. We are going into our second week of the listing still showing as active. We hope the agent didn't tell us there is a bogus cash offer to back us away from purchasing the property. Our realtor has contacted the sellers' agent and just crickets. How can we proceed on going into contact or just making sure there was a legitimate cash offer. 

IME you never get hard evidence of other offers unless you include a price escalation in your offer.

 

In the states I've bought and sold real estate, a contract is a contract and a new offer accepted after another means the seller now has two accepted offers which is legally and ethically dubious. But it sounds like your sellers didn't sign your contract which -- and I am not a lawyer so I could be wrong -- there is no written contract between you and the seller.

 

If the contract was executed, does it stipulate penalties for either party if it is broken (absence the triggering of a contingency)?

 

otherwise what you describe sounds like you simply were outbid. Your agent should be able to guide you on the matter.

 

 

Edited November 15, 2020 by hegemony

[8ball]

This happens more often then we like and it's hard to prove whether or not the "cash" offer actually exists. The Realtor code of ethics prohibits lying about offers but this doesn't stop bad actors.

If this is for land the other offer might include some contingencies on zoning or utility hookups so the agent may leave the status as Active until the contingencies are removed.