Is it Ethical to show properties under contract?

Question

Is it ethical to continue to show a property after a contract has been accepted? I have a contract accepted and ratified. But now it seems someone has submitted a 2nd contract. This is a complicated deal. Now my realtor and the seller seems sluggish.

I'm feeling nervous

Thanks

I'm feeling nervous

Thanks

Ronald Rohde · Answer

From this fact pattern or something else? Nothing seems out of the ordinary given the pushback on Phase II costs. Seller is reasonable to seek backup offers if OP terminates...

@ed

@Ed McIver  if you are leaning towards terminating, try to sell your PhaseI to the new buyer, they are often transferable and useful to save time for the end buyer. undefined

Chris Seveney · Answer

@Ed McIver

Are there still open contingencies? If so I do not see any thing being unethical about it. Some sellers will accept backup offers.

Russell Brazil · Answer

Absolutely the seller should keep showing the property. And why should the seller pay for your due diligence?

Alex Talcott · Answer

To my fellow lawyers out there, I'd be interested in chatting on anything recent in tortious interference.

Ryan Kelly · Answer

@Ed McIver until a property is closed, it is still considered for sale even if under contract. Showings aren’t common after a property goes under contract, but there is nothing inappropriate for a seller to allow additional showings and accept backup contracts. I present backup contracts quite often.

Sergey A. Petrov · Answer

seller wouldn't pay for a Phase 2 (assuming we are talking environmental)... Phase 3 is where you get to the nitty gritty with all sorts of issues and potentially needed environmental remediations. That is the point where you, as the buyer, take a step back and decide how far you want to go. It is not usual to spend thousands on due diligence on a commercial deal - in the end, it may or may not work. You decide how far you want to go with due diligence and how many experts you need to be bring in to advise you, at your expense.

Long Le · Answer

I assume you are the buyer in the deal. If so, I wouldn't be too worry. The seller cannot cancel unless you want too in most of the case

Dwayne Poster · Answer

I suspect you mean someone has submitted an offer. No big deal, it happens frequently. Who ever is advising the parties involved needs to be cautious. You don’t mention your role in the deal.

Daniel Chang · Answer

You ask a question of ethics.  This isn't about ethics.  If I was the seller under contract, I would absolutely instruct my broker to continue to take offers.  The potential buyer (you) under contract has the right to exercise your contingencies and drop the contract, at which point if I have other offers, it would reduce time on market.  Furthermore, having secured other offers puts pressure on the contracted buyer to perform.  It also improves my negotiation position.  For instance, if a second buyer submits a LOI for higher than the current contracted price, I'm going to say "no" to everything, since if you walk away, I can sell it for more.

You still control the asset.  They can't sign another contract.  However having other buyers makes it less advantageous for you no doubt and hence you don't like it.  But it's a legitimate business practice.

Ronald Rohde · Answer

I think its pretty uncommon!

Is it Ethical to show properties under contract?

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