real estate question

My ILs are moving to FL and selling their house. They listed with an agent (and on MLS) and had a broker's open house. That weekend an agent brought by a family a couple of times b/c they were interested. That family made an offer, negotiated, and ILs settled on a price with them by later that same week. That next weekend (just a few days later) they had their scheduled open house. ILs have told us that the agent said about 17 people came through and some seemed very interested.

ILs have also told us that since they have an accepted offer (no contract or anything) they are not allowed to know if anyone else has made an offer (or how many offers or what those offers are for). I thought if you were not in contract then you could know any other offers and still consider them. We haven't bought or sold for a number of years now. Is this the case?

Re: real estate question

Assuming your in-laws live in NY, here are the rules:

All offers must always be presented to the seller for consideration, regardless of the circumstances.

If there is an accepted offer, but no contract has been signed, your ILs are free to accept another offer. No one is really committed (legally) to the purchase until they sign the contract.

If your ILs are in contract and another offer comes in, your ILs can't break their contract, but they should be informed of the offer and can hold it as a back up should the first purchaser not be able to close. It would be rare for other offers to come in once a sale is in contract because the house will not longer show as available on MLS and will no longer be shown. But you never know...

Once there is an accepted offer on the house (even if it's just a verbal acceptance, even if the home inspection hasn't been done yet, etc.), it is a "material fact" and should be disclosed to other interested buyers (and agents who inquire about the property). So the accepted offer should be disclosed to other interested buyers. That may or may not deter people from making an offer ... some people don't want to get involved with a "bidding war," others want something all the more when they know others want it, too!

Hope this helps!

ETA - So it is NOT true that your in-laws can't know of other offers. In fact, the opposite is true. They must be presented with other offers. It's their listing agent's job to get them the best deal possible (in terms of purchase price, terms, etc.). So if other offers are coming in, they have the absolute right to know that and to negotiate with the prospective buyers making the offers.

Message edited 6/28/2012 8:51:08 AM.

Re: real estate question

Thank you for your reply. That is how my DH and I understood it. Yes, my ILs are in NY, the offer was accepted and there was an inspection but no signed contract. I really appreciate the info. We just worry about our parents and don't want them to be taken advantage of (not saying anyone knowingly is doing that). Their real estate journey is progressing very quickly.