Legal Question in Real Estate Law in District of Columbia

We made an offer on a townhouse, seller counter offered, we counter offered theirs and then they accepted it. The only thing that we signed is the original offer, we haven't singed/initialed any of the counter offers. If we change our minds at this moment - will we loose our earnest money? Also, our realtor has lied to us - told us that the property was an investment property and rented out....the seller is tired of renting and wants to sell it. We looked up on line and found out that it was bought as a foreclosure 6 months ago, remodeled and put back on the market. Will this information effect the status of the house title (meaning that it was a foreclosure at one point of time)? Is it legal for a realtor to lie to his clients? Can we get another realtor and make an offer on the same property, would that make any conflict of interest?


Asked on 7/26/10, 9:29 am

1 Answer from Attorneys
Sean T. Morris Law Office of Sean T. Morris

It seems the questions you have to ask yourself are: (a) do we still want to buy this house?; and(b) do we want to pay the price that was agreed to? If the answer to either question is no, you may have grounds to rescind the contract based on the realtor's misreprentation to you. You could then demand, or even bring suit to have your earnest money returned to you. By backing out of the sale, however, you risk the seller keeping your earnest money or even bringing an action against you for failing to follow through on the sale. If you are intent on not following through with the sale, you should consult with an attorney to ensure your rights are protected and you don't lose more than you have to. Good luck.

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Answered on 8/05/10, 2:01 pm


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