Legal Question in Real Estate Law in Illinois

We put an offer in for a home for 70,000 with 500 earnest money. This is a foreclosure and obviously bank owned. They countered the offer at 75,000 and requested 1000 earnest money. We agreed to the counter, signed papers and sent them the 1000. We then proceeded to have a contractor and inspector go through the home and get estimates on repair. A couple days after the inspection, the listing agent called and stated she had just recieved another offer on the house and asked if we would like to increase our offer. I thought they couldn't except any offers? Is earnest money only there to protect them from us backing out? I thought it worked both ways?


Asked on 9/01/11, 1:03 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

The first thing you should do is hire a real estate attorney to represent you, assuming you have not already done so. Your question does not say if you have a contract signed by the seller. If you have a contract signed by both the seller and the buyer, the seller should not be able to accept other offers, unless the purchase agreement allows the seller to do this. So, again, have a real estate attorney review these documents, and tell you what your rights are. Remember, your real estate agent cannot give you legal advice.

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Answered on 9/01/11, 1:30 pm


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