In Washington State, we made an offer to purchase a property at the full asking price, with a third down cash payment and a promise to obtain financing for the balance within 30 days. We gave the sellers 3 days to respond. On Monday, the third day, our agent called to tell us our offer had been accepted – the wife was signing the agreement and forwarding it to the seller’s agent, and the husband, who was out of town, would sign when he returned.

We immediately went to the bank to apply for financing. On Thursday, we received an email from our agent, telling us that since our offer had been accepted, we needed to bring in an earnest money check, and we also needed to initial our agreement in a couple of places she overlooked. At the same time, the loan officer at the bank told us our loan would be approved, but he needed a signed copy of the agreement before he could complete the process. We contacted our agent to take care of these items, at which point she told us she didn’t have a signed contract – the sellers agent told our agent she had advised the wife not to sign until the husband returned, and by the way, another offer had been submitted. We were stunned; to say the least, to learn that the home we thought was ours was still on the market.

On Saturday, our agent told us she had brought the matter up with her broker, and they were working to get our agreement into escrow – they would work with the seller’s agent to go with the wife’s signature and get the husband’s signature later. If they had no success with the seller’s agent, they would contact her broker, and failing any satisfaction at that level, would file a complaint with the Realtor Board.

The following Friday, after giving our agent a pre-approval loan letter from the bank and a check for the balance due, we were told that the sellers accepted the second agreement, which was for the original asking price and cash terms. Our agent said her broker dropped the matter.

We are devastated. We understand that real estate law says we don’t have a deal if both parties don’t sign the agreement, but we feel a person’s word should count for something, and the lack of a signed agreement had something to do with the conduct of the agents involved. At the very least we would like for someone to explain to us why we were led to believe for more than a week that our offer had been accepted when in fact it wasn’t.

We have talked with 3 different attorneys about the situation and have received conflicting information from each of them. We just don’t know what to think or do. We still need to find a new home, but have little confidence at this point in our agent’s ability to get the job done.
Can anyone advise us?

Although you have no legal grounds to contest it (and shouldn't waste any more money on attorneys), it certainly is a rotten situation and I can completely understand why you are angry and disappointed. The sellers behaved unethically, although not illegally, towards you.

With regard to your agent, he/she should have warned you repeatedly that a verbal acceptance means nothing. Every time he/she asked you for something (earnest check, initials, etc.), he/she should have repeated to you that you still have no written agreement in place, so don't consider the purchase to be a done deal. If you have lost confidence in your agent's ability to well represent your interests, I wouldn't blame you for finding a new agent.

At this point, if I were you, I'd stop spending energy, emotion, and time on this situation, and actively continue on with your house hunting. If it helps, everyone I know who has suffered through a similar set of circumstances go on to find an even better home and end up thankful that the first home fell through.

Thank you for the reply, Prairiegal.
Sad to say we have been looking long and hard,and have looked at a lot of "junk" both before and since. This place was perfect for us in all respects, and although we would like to be positive about another place coming along, it's hard to do so based on what we've seen so far.
We'll take your advice and give it up, but it's going to be a long time before we get over the sense that we were dealt with in an unethical fashion.

**We'll take your advice and give it up, but it's going to be a long time before we get over the sense that we were dealt with in an unethical fashion.**

That is totally understandable. I was in your position once, but as a seller with a buyer that jerked us around, so I know how you feel. What helped me get through is the thought that "What goes around, comes around." At some point, that seller WILL get what is due them. You may not be around to see it or may not hear of it, but it will happen. Anyone who treats another person like that has a track record of doing so and will eventually get theirs.

In the meantime, you've now learned to ask, before putting in an offer, if all selling parties are on hand and available and ready to promptly respond, in writing, to your offer by the expiration date. Because of your recent experience, you won't ever again be caught off guard in this respect, and that's a valuable bit of knowledge you now have.

It wasn't your agent’s fault that the husband was not in town to sign, neither was it his fault that a better offer than yours came in during that delay. What should have been done was to fax the contract for all signatures within the agreed time frame.
Maybe your agent could have been a bit more forceful on insisting that everything was signed, sealed and delivered to preclude this unfortunate circumstance. Live and learn.
Good luck! Your next house will be better than the one you “lost”.