Dear Monty: I worked with an agent to sell and purchase a home. I found a home; however, after making an offer, I discovered it was in an HOA. I don’t want to live in an HOA. My agent knows the agent who was selling the house. I asked if we could back out of the offer; I gave no earnest money, and the seller hadn’t signed the offer. I put the offer in on 8/14/23 and asked for the release on 8/16/23. My agent did not tell the seller, and we went looking at other houses and placed a bid on another home. She did not give the seller the mutual release agreement until 8/22/23. The seller has not signed the release document, and my new agent is hesitant to show me anything because we would have to put in a contingency based on the seller’s signing. My old agent and I are not talking at this point. According to her, everything is my fault. Her broker boss is not responding to my text messages either. I don’t know what to do. Can you help?
Monty’s Answer: A buyer can withdraw an offer before the seller’s acceptance in every state. You state the seller had not accepted the offer when you withdrew it. Your agent erred if they did not deliver the document to the seller’s agent immediately.
It is unclear why your agent did not deliver the release. It is unusual because documenting all communication is the core purpose of an agent. It will be informative to hear the agent you are not speaking to respond. She may have dropped the ball. Consider making another offer on a home once you have resolved the current issue.
No. 1: You state in your email the words “to sell and purchase a home.” Do you currently own the home you intend to sell? Or did you sell that home?
No. 2: Did you rescind your direction to withdraw verbally?
No. 3: The agent who listed the house is the agent who should be telling the seller you want out. Why did you expect your agent to contact the seller?
No. 4: Do you have notes, emails, texts, voicemails or other witnesses who can attest to your story?
No. 5: Was your agent aware in writing of “no HOA” before you made the offer?
Consider visiting the broker’s office, as it makes ignoring you difficult. If the broker still stonewalls you, your options are listed below.
Option No. 1: Seek a legal opinion. Bring all your notes and the paperwork or evidence to verify your story. One advantage to this option is an attorney may get a response quickly. The disadvantage is you will likely have to invest money for the advice. Also, get an estimate of the cost. The attorney may also have an opinion on whether you should pursue another home until you get a release. If you still have your old home, you can wait.
Option No. 2: Every state has real estate regulations. Many states allow you to file a complaint online. You can likely file a complaint with the state at the same time you meet with the attorney. The attorney may have an opinion on when you should or should not file.
