Gross abuse of the Attorney Review Clause in the Multi-board Residential Real Estate Contract 3.0.
My fianc and I fell in love with a house for sale. Our contract was canceled 4 business days after the seller signed. A higher offer came in and the seller, with the advice of her realtor (Joe Woodbury of Re/Max of Barrington) and lawyer (Steven G. English), canceled our contract. I spent almost $1,000 in home inspection, mortgage application and attorney fees with nothing but heartbreak to show for it. How can this be legal? I know it most certainly can not be Ethical or in Good Faith.
Following is the sequence of events:
1/16 With the advice of my realtor I signed the Multi-Board Residential Real Estate Contract 3.0 with an offer to purchase a home. After a series of counter offers my offer was accepted by the seller. The accepted offer was noted and I initialed the changes.
1/17 The seller signed the contract.
1/18 My realtor gave me a copy of the signed contract.
1/20 I met with my bank's loan officer in the morning and with the home inspector in the afternoon. The home inspector e-mailed his report to me later in the day.
1/21 I spoke with my lawyer regarding the home inspection and received advise on what items to be concerned about. I asked my lawyer if presenting this information to the seller's lawyer would in any way jeopardize the purchase of the home. My lawyer said this is standard procedure; it will not jeopardize the deal.
1/22 My lawyer faxed the seller's lawyer a letter listing 4 concerns and attached the home inspection which listed 24 items. The letter stated Please accept these requests as items of further negotiation and not as a counter offer. Purchaser maintains the right to withdraw any repair requests.
1/23 5:50 PM Seller's lawyer faxed letter to my lawyer stating Pursuant to the terms of Condition 12 of the sales contract, please be advised that I hereby disapprove of the terms of the contract and hereby electing to declare the transaction null and void and authorize the return of earnest money. We regret that this transaction did not materialize and wish your clients the best of luck. Note: no reason was given for the disapproval.
1/24 My lawyer called my realtor and my realtor called me with the bad news.
1/26 With my ok my lawyer faxed a letter to the seller's lawyer stating: Receipt of your January 23rd letter is acknowledged. Apparently my client is nuts about this house and would meet or beat the second offer and waive the home inspection if Seller would hang in there on this deal. I know this is an awkward situation but if the second deal is disapprovable, this might be a place for Seller to make a little more on the home. Let me know your thoughts.
1/27 My realtor advised that I sign a new contract with a new offer more than the original list price, a closing date of 2/25, wave the well and septic inspection and cross off the attorney review paragraph. I checked with my mortgage company on the new closing date and loan amount, signed the new contract and faxed it back to my realtor.
1/28 The seller's realtor mailed my earnest money check back to me (postmarked 1/26). The check was stamped For Deposit Only Escrow Account. A handwritten note from the seller's realtor said I have been instructed to return this earnest money check to you. I am very sorry the transaction failed to close.
1/29 I called my realtor to let him know I received the earnest money check. He said returning the check to me is proof that it was never deposited. Realtor code states that earnest money must be deposited the next business day, which would have been 1/20. I was advised to hang onto the check, note and envelope as valuable evidence.
1/30 My realtor called and said the seller is not going to accept my offer. My lawyer suggested I offer $, $ to the buyers to cancel their contract before the Attorney Review time period expires. My lawyer called the seller's lawyer and asked if the buyers would be receptive to such an offer.
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