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jason101 · Feb 9, 2011, 12:57 AM

Signed a contract on a house shortly after they reduced the price. Can I change the change the contract to the new selling price?

AK lawyer · Feb 9, 2011, 01:05 AM

Originally Posted by jason101

signed a contract on a house shortly after they reduced the price. can i change the change the contract to the new selling price?

Let me see if I understand what you are asking. You contracted to buy the property at a certain price. But shortly before you signed the contract (Or did you mean shortly after?), they changed the asking price. If this is the fact pattern, no, you cannot change the contract.

But I am puzzled. Why did you sign a contract agreeing to pay more than they were asking?

jason101 · Feb 9, 2011, 01:13 AM

Sorry for the confusion.. The asking price of the house was 105,900. I agreed to that price and signed. 7 hours later the price of the house was updated on the realtors site and reduced to 94,500. Am I still obligated to pay the original asking price since I signed the contract.. This is a REO.

AK lawyer · Feb 9, 2011, 01:24 AM

Yes, unless there is some clause in the purchase agreement allowing you to change your mind, you are bound by the terms of your agreement. It's curious that the realtor changed the asking price after receiving your agreement.

I am wondering if what you signed was in fact a contract to purchase or, instead, was an offer. If it was merely an offer, and has not been accepted by the seller (or the seller's agent), you may have the ability to revoke your offer. Does it say anything about whether you can revoke? Did any money change hands (making it an "earnest money agreement", in other words)?

jason101 · Feb 9, 2011, 01:35 AM

It was a offer on a house that I signed. The realtor said it would take anywhere from 2-3 days to hear back from the bank that's handling the foreclosed property.There was no exchanging of money involved.My realtor said that if they accepted the offer then I would have to put a down payment. I just find it weird that they would put a price on a house, take an offer, submit it to the bank then lower the asking price.

AK lawyer · Feb 9, 2011, 01:38 AM

Originally Posted by jason101

It was a offer on a house that I signed....

In that case, and if you haven't yet been notified that the bank has accepted your offer, you should consider immediately notifying the realtor, in writing, that your offer is cancelled, but that you are willing to make a new offer at the reduced price.

jason101 · Feb 9, 2011, 01:43 AM

Thank you for your advice AK Lawyer. Im going to pass by her office first thing in the a.m.

AK lawyer · Feb 9, 2011, 01:59 AM

The realtor isn't going to be happy about it, but it does appear to me that you will be within your rights. Let me know how it plays out.

ScottGem · Feb 9, 2011, 04:47 AM

This is probably a case of the right hand not knowing what the left hand is doing. Since this is a foreclosed property, the bank made a decision to lower the price. They communicated that decision to someone at the realtor handling the property who updated the website, not knowing or checking that another agent for the realtor had potential buyer.

You should be able to reap the benefit of this lack of communication by informing the realtor, in writing, that based on the change listed on their website, you are rescinding your offer and making a new one based on the new listing.