Legal Question in Real Estate Law in Maryland
contract bids
We recently received a contract for the purchase of our home. The bidder gave an offer that was known at the time to be well above fair market value, but agreed to sign the offer. When the appraisal came back at fair market value, the bidder assumed that we would sell the property at fair market value only and would not agree to pay the difference between that and the bid, nor negotiate toward the difference. Additionally, he later admitted in writing that he had increased the bid specifically to enhance his chances at securing the contract, then asked us why we wanted to sell the property above fair market value. On a side not, he works for a mortgage company. If we were to take this to court, what would be the chances of getting the difference between fair market value and the offered price from the buyer?
1 Answer from Attorneys
Re: contract bids
If the offer was accepted then there is a contract. The price of the real estate is the contract rate.
Being someone who is associated with the real estate industry, the mortgage broker should know that an offer for purchase can be accepted to form a contract.
If you were aware that the contract price was higher then the FMV, then you should have made sure the contract stipulated that the buyer would perform to FMV. Speculative damages, if you can show them (e.g., another willing buyer at FMV) depends on the basis of the your contract.
Without having accepted the offer you have little remedy.
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