Legal Question in Real Estate Law in New Jersey
New Jersey real estate law
My girlfriend was turned down for a home. She was the highest bidder. When our realtor asked the selling agent why she commented better terms. We are sure that we were highest bidder. Also, our attorney thinks that she was turned down because the home has a pet odor and dander problem and the selling estate is concerned with a future lawsuit. My girlfriend was informed of this problem when it was in attorney review. It was never disclosed in the original selling advertising. She signed off on that and accepted the terms. The attorney review concluded and when it was time for the sellers an estate to sign it they decided to accept a lower offer because they were contractors and could better handle the problem. This smells of discrimination against a single female. Also, early in all of this my girlfriend was the highest bidder at the time and while in the first attorney review there was another offer and the process was halted. Somewhere in this the sellers attorney disclosed via an email or fax to all involved what my girlfriends counter offer was. All of this stinks! Is it legal? What are her options if any? Thanks!
2 Answers from Attorneys
Re: New Jersey real estate law
This isn't public bidding. Assuming this is not a foreclosure (where you ar expected to get the most $$$ you can from the sale), unless there were terms for the bidding, like closed bid and the highest qualified bidder wins, you have no cause of action. There are a hundred things that can affect the seller's decision, but you can not force a private person to sell to the highest bidder. Do you really think someone care if the buyer is female or martian? They are leaving, they don't care. Perhaps they felt the buyer was better qualified in some way, or they offered a faster closing, or cash, or would let them use the place for some period of time for a $1/month before they had to move out, etc., etc., etc. Move on.
Re: New Jersey real estate law
I agree with Kevin. Unless this was advertised as a public bid, the Seller is free to take any offer they want. Valid offers can be rejected for any or no reason during attorney review. Some reasons to accept a lower bid may be all cash vs mortgage, waiver of inspections and acceptance of the property "as is", quick closing date, etc. Not having seen the contracts involved, I cannot venture more than a guess as to why this happened.