Legal Question in Real Estate Law in Maryland

You have bad credit. You find a homeowner who is selling their house with the benefit of a real estate agent. You write up your offer to buy the house. The house had been listed for $84,900. The seller is agreeable to do an owner take back which is where the seller agrees to essentially to hold the mortgage. You pay the seller your monthly mortgage. You write up your own offer without the benefit of a lawyer or real estate agent. (DO NOT DO THIS). You offer $76,000 through the seller's real estate agent. She tells you that she will not present that offer to the seller. Can she do that? If so, under what circumstances? You convince her that she must present the offer. When it is presented to the seller, the seller agrees to accept the offer that you prepared. After the acceptance, the seller asks to run a credit check on you the buyer. You agree. Your bad credit stops the computer. When the seller sees the report, he says he is backing out of the deal. The offer, now contract, had no provision as to a credit check because you wrote the contract. He says he will not now sell the house or hold the mortgage. What remedies could you pursue? This was my case before I was an attorney. In a face to face case you would get the full version. What do you think happened?


Asked on 9/21/14, 6:29 am

1 Answer from Attorneys
Robert Sher Wagshal and Sher

If the ratified contract had no contingency for credit approval by the seller, you have a suit for specific performance against him. I assume the post-contract request for a credit check was not in the form of a written amendment to the contract, but simply made orally. In retrospect, when it was made, knowing that the check would not inspire confidence in you from the seller, you should have either refused or put something in writing that it was being allowed strictly for the convenience of the seller and in no way altered the terms of the contract. As to the question about presentation of the contract, ethical realtors will tell you that they are duty bound to present all offers, although often an offer that the realtor knows will be unacceptable is communicated orally to the seller and then only presented in writing if the seller wants to go forward.

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Answered on 9/22/14, 6:51 am


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