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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Real Estate Law
Satisfied Customers: 18600
Experience:  B.A.; M.B.A.; J.D.
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Can a signed agreement of sale be cancelled during attorney

Customer Question

can a signed agreement of sale be cancelled during attorney review if a higher offer is received?
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Phillips Esq. replied 6 months ago.

Hello: This isCustomer Welcome to JustAnswer! I am reviewing your post, and I will post my response very shortly. Thank you for your patience.

Expert:  Phillips Esq. replied 6 months ago.

Could you explain a little more?

Thank you for your cooperation,

Customer: replied 6 months ago.
we had an offer signed by a buyer which was then signed by us. they completed a home inspection and submitted a list of items they wished to have remediated on the home. two days later a substantially higher written offer was received by us from another prospective buyer. we are still within the attorney review period from the first buyer, wherein we can cancel for any reason. I see no reason we cannot cancel the first offer and go with the second one. am I correct? the first buyer is threatening to sue us.
Expert:  Phillips Esq. replied 6 months ago.

Thank you for the information. Kindly give me a few minutes to review the information that you have provided and prepare my response.

Thank you for your patience.

Expert:  Phillips Esq. replied 6 months ago.

Kindly clarify this statement:

"we are still within the attorney review period from the first buyer, wherein we can cancel for any reason."

Does your signed offer specifically say this?

Customer: replied 6 months ago.
the original potential buyers claim that we were actively seeking other buyers while under signed contract with them. firstly, we were not. the second buyers had seen the house previously and made an offer not knowing it was going to be under contract. when told it was going to go under contract they made a very high offer, verbally. in the meantime we signed the first buyer's offer and the second buyer put their high offer in writing. this is a traditional bidding war, is it not? in any event, in nj either party can cancel within 5 days of signed contracts for any reason. this is called the attorney review period. does the fact that our reason is a higher offer make any difference? I would think not. what do you say? thanks.
Expert:  Phillips Esq. replied 6 months ago.

Thank you for the information.

this is a traditional bidding war, is it not?

Response 1: It is.

in any event, in nj either party can cancel within 5 days of signed contracts for any reason. this is called the attorney review period. does the fact that our reason is a higher offer make any difference?

Response 2: No, it does not. Any reason means just that. It does not matter what the reason is so long as the reason is not based on prohibited discriminatory ground such as the buyer's race or nationality. So, you can cancel the first offer under the circumstances that you described.

Customer: replied 6 months ago.
thanks. I have nothing more.
Expert:  Phillips Esq. replied 6 months ago.

You are quite Welcome!

Kindly take a minute to give a 5-star rating to my response so that I can receive proper credit for addressing your concerns. There is no additional cost to you for giving a 5-star rating.

Thank you for your cooperation.