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understanding options contracts in florida real estate

Tuesday, November 27, 2007 - Article by: Lender411 Member

I received a call on Tuesday from our client whos home weve listed. Their in a desperate mode to sell their home and decided to contact "We Buy ------ Houses".

The representative from the company goes over to the home,tells them theyll purchase the home and can close in 15 days!

The seller calls me with jubilation! They believe all of their troubles are over! I ask them to send me a copy of the signed contract so I may review it.

As I begin reading the contract Im concerned at what Im reading, the more I read the madder I get!

The seller signed a 15 day "Option Contract" which allows "We Buy" the opportunity to sell their home. After the 15 day option contract expires they have the right to either move forward or for whatever reason cancel the option!

I decide to call the "Buyers Specialist for We Buy" who denies hes a Realtor, but coincidentally seems to have a Real Estate license.

The Conversation is as follows:

Me: My client is under the impression youre going to purchase the home.

We Buy: Oh?! We have an assigned options contract.Were allowed to attempt to sell the home in 15 days. If we cant locate a buyer we can cancel the contract!

Me: Youve locked up the home for 15 days without contacting me of your intentions of writing this contract. You do realize youre a licensed Realtor, correct?!

We Buy:Im not really a licensed agent. Our company deals directly with homeowners.

Me: You placed $300 in escrow, gave a ridiculous low ball price and told my client to start packing, is that right?!

We Buy: Well not in so many words! If we cant locate a buyer in 15 days well walk from the option,no big deal!

Me: Youre playing with other peoples emotions,telling them one thing and doing the complete opposite, you think thats fair?

I was visibly upset with the way the seller handled the situation and placed me in this position. Im worried for them because theyve now "Tied Up" the home, which means I have to disclose this to any potential buyer who may be looking to purchase the home.

The simple truth is "We Buy" is misleading many homeowners to believe the "Homeowner" is saved when in fact theyre not!

Options contracts need to be disclosed properly to the unsuspecting sellers who are in an emotional state.

Telling a seller to "Start Packing" when it may not be the case is really bad business in our opinion!

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