Of course, they ask all the time.  They don't understand contracts.  Most should watch more Judge Judy.

Yes, a couple of times, however, once I pointed out the potential legal peril and associated expenses, they came to their senses.

No, but I have heard there could be high legal fees associated with this. I think the higher offer would have to well exceed the amount of legal fees involved. I would consult with an Attorney.

I had a seller try to cancel on my buyer.  We did not let them get a way with it.  I suppose if a seller has a better offer it puts them in a good position when it comes to negotiating repairs.

Yes, but that is called a breech of contract.

Buyers have contingencies in the contract, so have ways to escape.  Sellers typically don't have any options to get out of the contract unless the buyers gives them an opening.

Sellers who cancel a contract still owe commission and the buyer may sue them for specific performance.  That alone makes taking another offer appear less desirable.

Eve

"Greed, for lack of a better word, is good", says Gordon Gekko.  Look where that put him.  If they have doubts, don't sign the contract.  Once they sign it, they should honor it.  

Several time, and in one case they bought out the buyer. It worked out for everyone involved.

Couple of times. I advised that if they really want to do that they should speak to an attorney first because they may be in breach of contract, which could result in damages. After that advice nobody has ever wanted to do it.

If the Buyer is in contract with the Seller and the Buyer is performing under the contract in good faith . . . and the Seller bulks and tries to cancel . . . I've got my attorney on speed dial and two words would be uttered:   SPECIFIC PERFORMANCE!

NO.  What part of legally binding does the seller not understand? And, on what grounds would the seller cancel?  Unless the buyer is not preforming .... ???

No, yet how did the seller get the offer? Surely, it didn't come from his agent since they were already under contract or was it a FSBO?

The next one goes into backup position

I tell them that they need to talk to a real estate attorney and this usually settles the issue.

Dear Jack,

That always seems tempting, but rarely works out well. People, who make delectably high offers, often do not back them up with the wherewithall to get to closing. Better to stick with a boring, but reasonable offer.

Yes....but I make them aware that they could be sued. 

Thank goodness this is one experience I have missed!

With proper counseling with the seller this issue can usually be avoided. The occasion can arise when the seller needs to be reminded of the binding nature of a contract and the potential legal and financial ramifications of default.

No I have not had this happen but I sure got a lot of good answers and preventions from all of you, just in case it ever does. Thanks everyone!

Really?  People will try anything.

I have had the experience twice. Once the buyers prevailed after the seller got a legal consult. The second time, the Seller provided monetary compensation to the first Buyer. They took it, and the Seller moved on to Buyer 2.

Greedy seller never makes for a good sale. I'm sure it's happened in the faster markets but not too much of that going on here in the Midwest. If he signed it, he's bound by it & I wouldn't be a party otherwise.

I have had sellers ask me if they could do this and once I mention the word LAWSUIT they are most happy with the current buyer in escrow.

Never had it happen. My listing agreemnets all state that I do not present any offers received after a contract signed.

Oh yeah, several times.  The seller needs to talk to an attorney.

Only once and it was a challenge. Now I try to structure to avoid the situation.

It does Happen but luckily it hasn't been a big issue once all the consequences are explained.  The other offer would have to be a "HUGE" difference to even think about breaking the contract.

Absolutely not!  Before we talk about offers, I explain what they can or can't do.  Unless it's a formal backup offer, they don't get to see details.

This has happened to several of my buyers, and I simply had the listing agent's broker explain to the seller about how a contract works. All then closed.

In Illinois this can happen and there are legal ways they can do this however there is an option in the contract for the first buyer to waive all contingincies and go ahead with the purchase.  There are so many outs of a contract.  It is important to make sure your real estate attorney is involved and everything is done through an attorney.

excellent post, but hopefully this does not happen in your business:(

Has happened several times but they always relent once I explain the possible legal implications.

Never had this happen like that, but have had similar situation. We also won our commission and the seller paid three commission sides. Unfortunately this situation happens. It's called greed!

Probably but not a single one of them had the nerve to bring it up or ask me how to do it. They know it would be wrong.

Gotta love Chris and Dick's comment.

Jack - So far this has not been an issue, but I can see how a seller would want to try to get more money with another offer. What they don't understand is the ramifications of canceling a contract.

I had this happen years ago, and my broker at the time would not fight for the commission.  I have had other times when I explained to the seller what the contract said and they understood.

Yes, several times in the past

Jack Lewitz Not easy to do since the buyer could bring a suit against the seller for specific performance.

Sure. That is a good reason for the buyers to have a ratified contract.

not so far and hope it does not happen , great question wow ; gabes answer is what i think it would at the en be the result of this fiasco. have a great day

I've had buyers wish they could cancel but my clients are always informed up front that once they sign they can legally exit the contract only if the buyer fails to perform or makes additional demands (repairs, etc.).

GREED.  OFTEN from dble ended deal.. BRE will not deal with it.