Offer not accepted by bank due to recently discovered survey problems. We had highest offer, but now bank wants new offers when problem is fixed.

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Offer not accepted by bank due to recently discovered survey problems. We had highest offer, but now bank wants new offers when problem is fixed.

We made an offer on a foreclosure home listed “as is, no repairs, no warranties.” There were multiple offers on the house and we were the highest offer (above list). Well, the following day we were told that it had been discovered that the property was encroaching on an easement. The bank that owns the property said that they will not accept any offers until they collaborate with the city to fix the problem and in about 2 weeks they will be accepting offers. The house is still on the MLS-Can they do this? Can they raise the price on us? Can the other party raise their offer to out bid us?

Asked on June 2, 2009 under Real Estate Law, New Mexico

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Unless the offers were made in response to an auction of some sort, an offer is just an offer, until it's accepted.  So, based on what you've said here, the bank can probably do this, quite legally, and they can raise the price, and other bidders can raise their offers -- but so can you, and you are also able to withdraw your offer and go after something else instead.  For a detailed review of your rights and your options, based on all of the facts (including those you weren't able to include, or might not have thought important) and the law of your state (where I don't practice), please see an attorney in your area, as soon as possible.  One place to find a qualified attorney is our website, http://attorneypages.com


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