good faith covenant inherent in purchase contracts
When sellers discover that a buyer’s agent had allegedly written multiple offers for Sacramento home buyers — both of which were accepted — it can be normal for sellers to want to express outrage and direct those feelings toward the buyers. Because the buyers should not play games, the sellers might say. The sellers might feel deceived, believe the buyers are dishonest, when all the buyers are really doing is following the ill advice of their buyer’s agent.
Some brokerages in Sacramento recommend this practice, I hear. I can’t believe that any reputable real estate brokerage would advise their agents to write multiple offers for buyers but I don’t know what goes on inside every brokerage in town. I know what Lyon Real Estate lawyers advise, and that is: don’t write multiple offers. They say there is a good faith covenant inherent in the residential purchase agreement that could be breached if a buyer can’t afford to own both homes and tries to simultaneously purchase.
Now, if a buyer came to me and said, for example, that the wife wants to buy one home but the husband has his eyes on another home, I would never in a million years tell those buyers to write offers on both homes and then decide later. Yet, that is what can happen in Sacramento. Nope, I would say go home and sleep on it and if you lose both homes because somebody else steps in while you’re deciding, that’s the way life is. Or, write an offer on the home you like best right now.
But that’s just how this Sacramento real estate agent operates. I try to give my sellers the best advice available and, at my age and experience level, I better be right. My reputation and credibility are at stake, not to mention, buyers who write multiple offers could get sued by an irate and damaged seller. It will happen someday. Mark my words, and then buyers will be crying at their agent and asking why, why did you tell me to do this?
Hope the agent’s E&O is paid up.