Legal Question in Real Estate Law in California
commercial real estate offer and counter-offer
My real estate agent handed the first official written full price offer on a commercial lot to a seller's broker with a 24 hour time frame of response. After 6 days the seller's broker lets us know through a phone call that they are going to wait for the highest bid and that they are not obliged to counter-offer us or to respond. I request them to counter-offer us, to be considerate and fair to us because we were the first to offer full price and he denies to talk to the seller about it.Is this broker abinding the law,do I have any rights,how do I know if my offer was even presented? Is this broker waiting for a non-split (double agent) comission deal?
2 Answers from Attorneys
Re: commercial real estate offer and counter-offer
Even if you present the seller with a full price offer he is not required to accept your offer, and has every right to withdraw the property from the market, or seek a buyer who may be willing to pay more than the asking price. This seller is obviously receiving other offers on the property for a price higher than the seller's original asking price, and you are in all likelihood in the middle of a "bidding war."
As to your statement that the seller's agent "denies to talk to the seller," he may have received instructions from the seller already indicating that the seller want to wait, and the agent may simply be following his principal's instructions. No one, other than the seller's agent, can tell you whether the seller's agent is "waiting for a non-split (double agent) commmission." Finally, even if the seller's broker/agent is engaged in some shaddy conduct, the only one having any standing to complain about it would be the seller himself, since he is the only one in privity of contract with the broker/agent (the one the agent has a conract with).
If your agent gave the seller 24 hours to respond, and the seller has not responded after 6 days, you may consider simply walking away, or asking the seller whether he has other offers, and if so, what they are.
Re: commercial real estate offer and counter-offer
There agent has an obligation to communicate your offers. However, if he has communicated your offer and told you they are going to wait for a better bid, there is no reason for him to continue to communicate the same thing over and over.