HomeBuying and Selling Process

It is very important to understand the most important aspect of how real estate is transacted in New York State. A buyer is not obligated to purchase, and is not protected from other buyers purchasing a property one is interested in, unless, and only unless, a buyer has a signed, executed contract of sale by the buyer(s) and the seller(s). No verbal offer, acceptable offer, signed written offer, verbal or written binder, promise or anything else will protect the purchase/sale of a property!

No matter what a buyer and seller agreed to verbally, no matter what discussions the attorneys have, you do not have a binding contract until you have an executed contract of sale.

That means that during the time a buyer is scheduling a home inspection, the attorneys are discussing contract issues, etc., the property is still being shown to other buyers for sale. Any other buyer has the right to and, if motivated enough, will present to the seller any offer. And, if the seller wants to take the new offer, the seller can and may. If a buyer has spent money on a mortgage application, points, lock-in fees, house inspection(s), attorney fee, appraisal, etc., and there is no signed, executed contract of sale, the seller has the right to cancel the deal and sell to another buyer at any time. And, the seller is NOT obligated by law to reimburse the buyer for ANY expenses incurred. In addition, no matter how much the seller has relied on the buyer purchasing the property, the buyer has the right to cancel the deal at any time. Therefore, always remember and never forget that when a buyer finds a property to purchase, go through the process as quickly as possible. All the best intentions and reasonable discussions do not guarantee a sale of a house. Only an executed contract protects one buyer from other buyers, or buyers deciding to “back out”. So, until the contract is executed, remember, everyone is at risk.