June 28, 2010
Dear George: I presented an offer on a house two weeks ago through my REALTOR®. We negotiated the terms of the contract several times with the seller's agent and finally agreed on terms verbally. My REALTOR® redid the contract, which I signed, and sent it to the seller's agent. The seller asked for more changes. We redid the contract again, I signed it, and my REALTOR® sent to the seller's agent. At the request of the seller's agent, my agent delivered the earnest money and option fee to the title company.
A few days later, the seller's agent called my agent to tell her that the seller had received a better offer. We don't have a contract anymore. My agent told the seller's agent that she cannot do that; my agent thought we had an agreement and that we were waiting for the seller to sign. The seller's agent told my agent that the seller never signed our contract. What recourse do I have?
Answer: You have no recourse. Find another house.
In your question, your refer several times to your offer as a contract. That's incorrect. An offer does not become a contract until it is signed by all parties—buyers and sellers. Verbal agreements mean nothing. The seller never signed your offer, so you never had a contract.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
