Legal Question in Real Estate Law in New Jersey

Agent in Violation of National Association of Realtors Code of Ethics

I received a Verbal Agreement that my bid on a home was accepted 5 days ago from the listing agent & the seller of a home. My signature & deposit was submitted at the time of my bid. The listing agent, while accepting my offer, failed to get the seller's singature on the contract in a timely fashion & now the seller is on a 2 week cruise out of the country. The listing agent knew the seller was going on the cruise & delayed in having her sign the contract. Now nobody can get a hold of the seller & the listing agent has been entertaining more offers & has started a bidding war on the property. Is this agent in violation of the 2002 National Assoc of realtors code of ethics? Also, is this agent libable for withholding the seller's privately disclosed plans to leave the country from the buyer (me)? Also, can this agent solict more offers on the property without consent from the seller (the seller is still under the asusmption that she sold the home to me)?


Asked on 8/22/02, 9:34 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Agent in Violation of National Association of Realtors Code of Ethics

Tough question. In NJ the contract for the sale of real estate must be in writing and signed by the parties. A verbal contract is insufficient. Also, under the 3-day attorney review rule, from time of completed contract, either party can disavow the contract with no reason being given. This would allow the seller to cancel your contract and permit new offers to be considered. Your problem appears to be that there was some performance (signing the contract, giving the deposit, etc., with verbal confirmation from the seller). This could lead to litigation to determine if there was a valid contract. My suggestion is to do several things. If the contract listed the seller's attorney, retain an attorney, have him/her submit an attorney review letter to the seller's attorney and see what response there is. Also, consider filing a complaint with the realty board against the listing broker. Finally, when the seller returns from the trip (the broker is not obligated to tell you about the seller's vacation plans), try to get written confirmation of the contract approval. If all else fails, you may have to litigate.

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Answered on 8/22/02, 10:33 am


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