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  • Maria Chernetska

What happens after you signed an offer letter?

If you signed a submitted offer form or letter of intent, then you have put yourself in a precarious situation and may be sued if you don’t follow through. You should immediately protest to the broker that you have been tricked into signing something that wasn’t necessary to be signed.


For example, in New York offers are generally emailed and are completely non-binding. Real estate offers are generally non-binding in NYC, whether they be made verbally or in writing. There is never any need for a buyer or a seller to sign anything when it comes to the offer submission and negotiation process.


However, some brokers do have their offer submission forms and templates, and you should push back hard should you ever come across such a form that requires your signature.


Ask to speak with their principal broker if the listing agent demands that you sign what should be a completely non-binding offer.


You can even warn them about the unauthorized practice of law in some states like New York.


This is serious because even though offers are generally not binding in most states like New York, whether they be written or verbally made, there is legal precedence where courts ruled that offers were indeed binding when signed and when they included common contract language.


As a result, you should never sign any sort of offer form or letter of intent, especially if you want the ability to withdraw your offer before having signed a formal contract of sale.


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