In a multiple offer situation, is it legal to have the highest offer and lose the house to another offer?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
In a multiple offer situation, is it legal to have the highest offer and lose the house to another offer?
Said house is a foreclosure.
Asked on February 6, 2011 under Real Estate Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
There is no law saying that the highest bid or offer must win the day (except in an actual auction, where not selling to the highest verified, valid bid is a violation of the agreement[s] governing the auction). In other contexts, including even multiple offer situations for a home that's in foreclosure, the seller can choose any winner it likes, and many factors other than price--such as the type of finacing (e.g. cash or loan), whether there are contingencies or not, closing date, etc. are also factored in. At the end of the day, a seller may decide whom it wants to sell to, and the highest price doesn't always get the goods.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.