A Sleazy Move that Cost Me A Rental Property

I’m going to jump right into this one! We identified rental property number 6, negotiated a great price and then… Shit got real

You guys don’t understand… WE HAD A SIGNED CONTRACT AND EVERYTHING!

I’ll just give you guys the word for word text messages between my agent and I, then the ensuing email exchange between my lawyer and I

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Me: Contract signed. Did you talk to the agent about our price? Secondly, is rental #5 (Nicki Minaj’s) roof complted? I want to send the insurance people back over there to check it out again.

Agent: No the job was delayed a bit and should start soon. Sorry, I didn’t tell you. BTW our offer on Villa (Rental #6 / Rihanna) expires at 5pm. Lister says he expects another offer to come, but won’t recive it until tomorrow Noon. He asked me to wait so seller can compare. I told him our offer expires and he can’t count on use being interested, then I wished him luck.

Me: Ha.. They are acting like this is a primary residence and I’m emotionally attached to the place. What’s next… the attempt to start a faux bidding war? LOL

Agent: If they come back and accept our offer I say lower it to $20k

Me: I agree

Me: Whelp… it’s 5:01 any answer?

Agent: They are going to accept it I think

Agent: I talked to the lister on the phone at 5. He said He’d get the sellers signature this evening. He figured out that was his best option or maybe that other offer wasn’t really coming?… Who knows.

Me: I’ll believe it when we have a signed contract. They have to know that this is how the deals work! Why play aroud with losing the deal? Silly Wabbits

Agent: Exactly!

4 Days pass after getting a signed contract…

Agent: Atty for seller tells me he is disapproving our contract for Villa (Rental property #6 / Rihanna) because another cash offer of 24k with no inspections was received

Me: After the deal was signed? Wow!

Agent: I asked for a chance to counter, but the seller wants the more forward with the 2nd offer. No other option for us that I know of

Me: Hmm…. What’s the point of a contract if they can void it when they want? Did you tell my lawyer? This is some grade A bull crap. I hope their contract falls through so we can offer them 5k less.

I contact my lawyer via email…

Me to Laywer: The sellers attorney is threatening to cancel the contract because they received an offer for more money. Since this is a signed contract do we have any recourse?

Lawyer: They can do that with the attorney approval letter and not approve the contract so yes they can

Me: Wow,  learn something new everyday. As a buyer how can I protect myself in the future from such incident? Anyway I can bake in a fine or something, so my agent isn’t wasting his time?

Lawyer: Unfortunately the only way to do that is have them waive the attorney approval and most won’t do that

Agent: On these small cash deals its not unusual to negotiate a competing offer after the deal is signed. The interesting thing here is that the seller would not give us a chance to beat the 2nd offer.  He wanted to take the offer that did not have an inspection for plumbing.  If I read between the lines on that thinking, there must be something with the water supply or the sewer that he knows about….no proof….just saying his action doesn’t make sense at face value.

Lawyer: I agree

Then the bad news became official

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Moral of the story… YOU DO NOT HAVE A DEAL UNLESS YOU HAVE THE SIGNED DEED IN YOUR HAND. I learned a valuable lesson about the market I invest in..

3 comments

  • Jeni Lu /

    Good to know. Sorry you lost out on the house but maybe it’s a blessing in disguise. Like you referenced with the plumbing, the house could have come with a set of big issues and headaches!

  • It definitely does make you wonder about the plumbing – the logical course of action for the seller would be to get the highest price possible, so it’s interesting they would rather close the deal than potentially get more from a routine inspection (unless they have something to hide)

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