Is there a way to withdraw an offer for a client?

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Professionally dressed man ripping a contract in two

04/03/2015 | Author: Editorial Staff

My client has submitted an offer to purchase a home. We have not heard from the seller or his agent regarding the offer. My client has now found another home that he likes better and wants to withdraw the first offer. Does the Texas Association of REALTORS® have a form that we can use to withdraw an offer?

No, the Texas Association of REALTORS® does not have that kind of form. Since your client wants to withdraw his offer before the seller has accepted it, a prompt communication of that withdrawal is essential. Call the listing agent and tell her about your client’s decision to withdraw his offer. Follow the telephone call with a fax, letter, or email confirming your telephone notification of the time and date of your client’s withdrawal of his offer. This kind of written confirmation of the verbal withdrawal of the offer can help document the timeliness of the withdrawal should an issue develop concerning the seller’s possible argument that he had already accepted the offer.

It should be noted that this same procedure could be used by a listing agent where the seller wants to withdraw a counteroffer made to a buyer so that he can sell the property to another buyer.

Read more legal FAQs on texasrealestate.com.

Categories: Forms, Legal
Tags: legal, legal faq, buyers, serllers, forms, contracts


Comments

Sarah on 06/17/2015

Buyer’s agent initiated termination of contract day after discovering the property was listed as active “Back” status, on the day after buyers agent, buyer and seller signed the termination of contract, signed the release of earnest money. Listing agent refused to sign the release of earnest money. Is this allowed?

Maria on 06/17/2015

Can a listing agent put the house back on the market while its pending status?
Without terminating pending contract? Without any notice to buyer or buyer’s agent?

Dave Turnquist on 04/10/2015

I have seen this statement inserted by agents into Paragraph 11, Special Provisions, many times.
“This offer VOID if not not signed and executed by midnight on (insert date here)”

The contract is either signed and executed or it is void after this date.

Any attorneys want to comment on this?

Yolanda Holmes on 04/09/2015

How did this conversation turn to Option period?...I thought it was more about, Why don’t we have a promulgated WITHDRAW/RECIND letter.
Option period doesn’t even come into play based on this dialog, we are talking about withdrawal of a CONTRACT OFFER.
And just like we have a Termination letter we need a withdrawal or rescind letter.

keith laursen on 04/09/2015

It’s not 2 days to deliver the option, it’s 3 days and you can find that info under Chapter 23 of the 1-4 Residential Contract.

Shanna on 04/09/2015

Becki, when you say you have 2 days to tender the option fee after “execution of the contract”, what does that mean.  I have never heard this and I would like to educate my self on it -Thanks!

Becki on 04/09/2015

I’m with John Kelly, these questions are vey concerning for practicing Realtors in Texas. Straight Out Of Ethics: Effective Date of contract; Contract must be in writing, both Buyer and Seller must sign the contract -including the initialing of any handwritten changes to the initially drafted offer, acceptance must be unequivocal, the last party to accept must communicate acceptance back to the other party (or party’s agent) > When calculating the timeline of performance - the effective date does not count and is not the first date of the option and does not calculate time or days.  Also, the Buyer has 2 days to tender the Option Fee after “execution of contract” to Seller (or Sellers agent).
Yes, this site is to help our profession, but when questions are raised that are fundamental to the contract it raises red flags. All of us must take Ethics and Legal every two years for a refresh…..these questions are answered in the handouts and in the classroom. Be safe out there!

Ed on 04/09/2015

Lets try to be a little more understanding of our fellow agents. We have all had to ask questions in our career to better our self in the profession.  Better to ask here than to learn in the beginning of an offer.

Keith Laursen on 04/09/2015

I find it sad that we have forms for every little thing because we are frequently reminded how important they are to avoid litigation but TREC & TAR doesn’t see the logic in a promulgated withdrawal of offer form.  You would thing something as useful, important and having such a potential for great dispute would have a simple form.

Michael Hinsley on 04/09/2015

It would be beneficial to all Sellers if they had an option period like the Buyer does. A Buyer has nearly a dozen ways to get out of contract for multiple reasons, but there is no clear termination for a Seller without legal ramifications. We need more protection for our Sellers!

Darrell Kirkland on 04/09/2015

This is for the terribly astute John Kelly who thinks that the level of questions being asked is a “sad” commentary on the agents asking them. We as agents try to do the “prudent” thing for our clients by dealing with the minutiae that contracts present before they become the fodder of the legal eagles who watch over us.

John Kelly on 04/09/2015

It is quite alarming the questions being asked on this forum.  How does a licensee not know these basic concepts of practicing real estate in Texas?  When does the option period begin?  Can you just withdraw a contract?  What about the option period of an offer?  Sad.

Darrell Kirkland on 04/09/2015

I found this very helpful and want to ask a question. When does the option period begin? If a contract is signed very late on the day and executed by the listing agent does the option period begin on that very day or does it begin the next day?

Dena Smith on 04/03/2015

I usually take the first page of the offer and write withdrawn across it with a big marker and have my clients sign and date it. Then I email the that page to the listing agent (not a bad idea to put a tracker on that email) and follow up with a phone call.

The option period doesn’t come into play because it is still an offer, not yet a contract. The buyer doesn’t have to forfeit the option fee to withdraw an offer. If the seller has already signed the offer and made it into a contract, then the buyer can exit through the option period and the seller keeps the option fee.

No Jennifer, you are dealing with a contract not an offer. If both parties don’t agree to an amendment in a contract then the terms of the contract remain the same. This question is about an offer - not a contract. Once your seller is in a contract they can not ‘withdraw’ and go with another buyer without consequences related to default of contract.

Dee on 04/03/2015

What about the option period:  did the client select the option?

Also TREC Form 38-2 NOTICE OF BUYER’S TERMINATION OF CONTRACT

Jennifer on 04/03/2015

Does this same thing apply when a buyer has requested changes through an amendment and the sellers does not want to accept the changes and decides not to accept the changes and accept an offer from a different buyer?


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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