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This is for a deal in Westchester. A buyer's agent asked an agent friend of mine who is representing a multi-family property seller to have the seller sign the offer form.
The buyer's agent submitted an offer using a form called Memo of Offer to Purchase/Sell. It also says on the form that this document is to facilitate the creation of the contract of sale and is not to be construed as legally binding. That was my understanding as well, if real estate offers in NYC aren't legally binding, then why request the seller to sign anything at all?
The information on the offer memo itself was pretty straightforward. It has entries for the property's address, the MLS number, proposed closing date, contact information, price, financing terms, mortgage type, inclusions, exclusions and contingencies. Interestingly enough, the default options for contingencies were engineering, sale of other real property, mortgage and other (specify). Maybe this is just Westchester but in Manhattan the only standard contingency is the mortgage or financing contingency.
At the end of this Memo of Offer to Purchase or Sell is a statement that says: Any costs undertaken by the buyer as a matter of due diligence are the sole responsibility of the buyer.
Then there's the acknowledgement of receipt followed by signature requests from both the seller and the buyer. Very interesting! Do you think it's because the other agent wants to confirm that the seller's agent actually relayed the offer to the seller? Just in case the listing agent is being nefarious and holding out for a direct buyer?
The buyer's agent submitted an offer using a form called Memo of Offer to Purchase/Sell. It also says on the form that this document is to facilitate the creation of the contract of sale and is not to be construed as legally binding. That was my understanding as well, if real estate offers in NYC aren't legally binding, then why request the seller to sign anything at all?
The information on the offer memo itself was pretty straightforward. It has entries for the property's address, the MLS number, proposed closing date, contact information, price, financing terms, mortgage type, inclusions, exclusions and contingencies. Interestingly enough, the default options for contingencies were engineering, sale of other real property, mortgage and other (specify). Maybe this is just Westchester but in Manhattan the only standard contingency is the mortgage or financing contingency.
At the end of this Memo of Offer to Purchase or Sell is a statement that says: Any costs undertaken by the buyer as a matter of due diligence are the sole responsibility of the buyer.
Then there's the acknowledgement of receipt followed by signature requests from both the seller and the buyer. Very interesting! Do you think it's because the other agent wants to confirm that the seller's agent actually relayed the offer to the seller? Just in case the listing agent is being nefarious and holding out for a direct buyer?