Legal Question in Real Estate Law in Illinois
Active listing...but not really.
This house has been on the market for 25 days. There was an initial close and the buyer's financing fell through, but there was no cancellation signed. The seller's realty company listed the house back on the market as ''active'' again. I saw this listing three days ago (first day back on market), checked out the house, got approved for financing, and made an offer that was verbally accepted by the seller as of yesterday. We already signed the contract and the seller was going to sign today but the initial buyer came back and said she still wants this property and is still trying to get approved, after being denied by three banks.
What rights does the seller have? Can he walk away? Do I have ANY rights in the situation?
3 Answers from Attorneys
Re: Active listing...but not really.
Depending on the terms of the contract, the seller may be able to terminate the sale to the other buyer and then sell to you. Your verbal agreement is, to be blunt, absolutely worthless.
Re: Active listing...but not really.
Without knowing what the seller's contract with the first buyer says, it is difficult to answer that question. If you do not have a signed contract (which it sounds like yo do not) it sounds like you are at the mercy of what happens with the seller. I can't imagine the seller is too thrilled with trying to work out a deal with a buyer that is likely not getting financing any time soon, if they have a new offer, so I think you need to have your agent find out what is going on, it might not amount to anything, but it depends on the terms of their contract.
Re: Active listing...but not really.
You unfortunately have no rights without a signed contract in a real estate transaction. As far as the other buyer, I'd have to see what that contract said and find out what happened after the financing fell through.
Please understand that this reply is being posted for informational purposes only and is not intended to be legal advice. Legal advice can only be given after reviewing all the facts of your individual case and is only provided to clients of the firm after a review of all necessary documents. This communication is not intended to create a lawyer/client relationship and I specifically state to you that you are not a client of the firm.
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