Legal Question in Real Estate Law in Georgia
We made an offer on a house in Georgia. The offer was for above the listing price and was a cash deal - no contingencies. The owner (bank) rejected the offers (competing) and decided to put the property on the auction block. We made the offer in good faith that it would be sold since we apparently had the best competing offer that was above the list price with no contingencies. It seems now that they were just playing the market to see what a possible auction would bring. Is this allowable or did they act in bad faith by listing the house and not selling after all the seller's stipulations were met?
2 Answers from Attorneys
Are you asking whether there is some law that forces the seller of real property to you because you believe you had the best offer, absent a written contract? Of course not - no more than there is a law forcing you to purchase a house you don't want to buy. A seller can put it on the market as many times as they want, choose what offers they want to accept, and change their mind right up to the point a contract is signed. The buyer has the same right to look at as many houses as they want and choose to make offers or not make offers. Would you really want the government stepping in to force these decisions?
Frankly the big banks are run by morons, and I have as an attorney seen two big banks - Chase and Citibank, in matters I handled, do exactly what you saw.
While it was dumb of them to do it, no one is obligated to accept an offer. Until both sides sign, there is no deal. Your choices are to either (1) move on and buy a different house, or (2) do what my clients did successfully - make a bid in the auction that was less for the bank than their offer (they did that and got the house).
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