Expert: Diann Tonnesen - 6/20/2007

Question
I recently signed a contract and paid earnest money to purchase a home, contingent on me selling my home.  My lender says he would lend me the money to buy the home without the contingency if I wish.  However, the thought of paying two house payments is not appealing to me and unless I am forced (by the kickout provision) I would like to try to sell my house first.  The contingency gives me 3 months to sell my house.  This was at the sellers request since they hadn't even found a house to move to yet.  It has been 3 weeks since we signed the contract and I am concerned with the way the listing agent has acted since that time period.  She has yet to list the house online or in the local paper as "under contract" and has been telling others looking at the house that "the owners never should have accepted a contingency offer on this house".  My agent works in the same company and tells us "that is just Mary".  There is no doubt that we will end up buying this house as I will get the loan if they force me, but I think that the listing agent should be a little more forthcoming about the status of the home.  My hunch is that she doesn't want to show that it is under contract because she suspects that it might scare off potential bidders.  I have even emailed her those questions and asked her the status of the owners finding a home in hopes that we can move up the closing if we sell our house early.  She has not responded back.  Should I complain to the real estate company or am I being overly sensitive?  What are my options?

Answer
Hi Ken,

This is where you need a straight answer from your agent as to the practice in your particular state of leaving a home in active status when actually it is contingent. In many states this is not permissable at all under any circumstances. In others, it is acceptable if it is stipulated in the contingent contract with the permission of the buyer. I am not aware of any states where it is permissable to leave a home in active status without written permission of the buyer, and it does not sound like you signed anything to that effect?

Placing a home in contingent status immediately cuts way down on showings, as other agents do not like showing property to their prospects that they cannot buy. You should call your local Board of Realtors as the governing body to ask what their rules mandate. If they do not allow leaving a home in active status, or if it must be in writing in the contract, it is time to contact the broker of the company. Your agent cannot take on "Mary" head to head as she has no power over her. And Mary cannot really respond to your emails as you are not her client.

Good luck with the sale of your home! I can tell by your letter that you are very serious about buying this new home, and fortunately you are able to do so under any circumstances.