Realtor accepted offer after contract signed?

Question

Hello, both buyer(me) and seller signed a land contract sale yesterday. Today the realtor contacts me and tells me that there was a higher offer after contract was signed and they would be accepting the new offer. New to real estate so pardon my ignorance but can the seller/realtor cancel a legal contract like that? What would be my next step?

Thank you, appreciate any advice.

Jonathan Greene · Answer

The realtor is obligated to present all offers to the buyer. In NJ, we have an attorney review period so a signed contract does not preclude someone else from bidding over the top. It literally happens all the time. What state are you in? It depends on the contract language or state. If you are in an attorney state, it can be canceled even after signed as both parties can rescind in three days (at least in NJ).

Evan Polaski · Answer

@Michael Jay, as noted you will likely be working with an attorney in the near future.

Based on what you have written, it sounds like the seller and their agent have little to no options to accept another contract.  I would start by talking to them.  If you have been working directly with the seller, call them and let them know you do not plan on cancelling the signed contract.  If you have been dealing with their agent, call the agent and let them you plan on honoring your signed contract.  See where that goes.

If that is not moving amicably and in a direction you want, then engage an attorney.  I will note that in my one experience with an agent trying to pull some underhanded maneuvers, as soon as I mentioned "please direct future correspondence to my attorney and expect to hear from them shortly", the agent immediately backed off their position and things happened how I wanted.

Michael Jay · Answer

Thank you everyone for the advice

Steve Morris · Answer

Well, if everything is pretty clean on your side (ie you have a real enforceable sales agreement), call the listing broker first.  If that doesn't resolve the situation, call their managing/principal broker and then tell them you'll call the state REA to complain.

I understand about lawyers and recording contracts against title, but think I'd try the easy quick things first before I get too verklempt.

Sherry McQuage · Answer

You might want to inform that agent's Broker in Charge, too...right after to hire a real estate attorney.  If the listing agent would do that to you, they have probably done that before.  Keep records (print out emails, texts, and summaries of phone conversations and the dates).  Good luck!

Catherine Emert · Answer

Get an attorney ASAP

Joe Splitrock · Answer

Tell them no, you have a signed contract. Tell them you will cloud the title by registering the contract. That will make it difficult to close sale on the property with someone else until they settle with you in civil court. Tell the realtor what they are doing is unethical and illegal. Explain you expect them to remedy the situation. Of course it depends on terms in the contract. Talk to a real estate attorney for your next steps.