Can a seller refuse a full bid offer on their house without penalty?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a seller refuse a full bid offer on their house without penalty?
My parents are selling their house but it isn’t on the market yet. Their broker talked they into putting their house on the market just under market value in order to incite a bidding war. Apparently, the broker does that with all of the houses that she sells and the seller always gets above asking. Well, now she is acting as the broker for a buyer and wants to show the house early to the potential buyer. The broker has told my parents that the buyer will most likely make a full bid offer. Not the original plan she had sold them on. With an exclusive right to sell contract, can my parents decline a full bid offer with no contingencies without having to pay commission since they suspect foul play? Or is there a specific number of days they have to accept an offer, since the broker is trying to show the house to the potential buyer before it is on the market? The broker has referred to the buyer as her friend, neighbor, and acquaintance on several occasions but only refers to them as her client via email and text. For this reason we suspect that she is not living up to her
fiduciary duty to my parents but there is no way of proving it.
Asked on May 9, 2017 under Real Estate Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
A seller has full right to decline an offer--including a full-price offer, or even a more-than-full price offer--freely, without penalty, for any reason (any reason that is not housing discrimination, that is: e.g. you can't refuse to sell due to race). So if they believe that the realtor has gerrymandered things so as to put other's interests ahead of theirs or to get them to accept less than they believe they can get, they may refuse the offer.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.