Expert: Dick Dennis - 7/16/2006

Question
We finally found a house we liked, our first house, and made an offer.  The house had been on the market for about 2 months and the current owners, have moved away an bought another home.  So our first offer was a little low and the owners countered.  The second offer we met there counter, but asked for part of the closing costs to be paid, they agreed and accepted the our offer.  

Here is where it gets weird, the realtor told us the our offer was accepted, but there was already a pending offer out there.  Evidently when the house first came on the market these people made an offer and they accepted, but it was contingent on the third party selling thier house.  When we were looking at the house there was never once a mention that there was already an offer on the table.  There was never mention in the MLS listing of the contingency, and our realtor had no clue about the other offer.  We were told about the contingency after our 2nd offer was accepted, and had no knowledge of it until then.  Now the third party has removed their contingency and we are still standing here.  
Was there something ill-legal done here, I know ethically it is all wrong.  What can we do?  The third party has every right to the house, but the seller's realitor is way in the wrong here, any suggestions?

Answer
Based on how you explained it, Michael, YOU BET there was something against the code of ethics!

The listing agent MUST have disclosed that there is/was another offer, but they were continuing to show the property and soliciting offers subject to that first possible transaction.

You should have been advised at that point. But they did advise you upon the acceptance of your/their counter offer. Based on what you said, now the seller has TWO accepted offers to sell his house. One of you buyers is going to court to force the sale, or you are going to contact a real estate attorney if you really want that house.

I guarantee you that a real estate attorney will get to the truth in this matter . . . if you really want that house.

I do wish you well.

Dick Dennis