If a seller who entered a First Right of Refusal agreement and then decided to not sell their home at all, could the seller be sued for Specific Performance?
Great question Dev. I'm not an attorney so the short answer is not legal advice. I've enough experience with contracts to tell you that contracts vary from state to state and even municipality to municipality, so the long answer is "it depends on what the contracts say." Most contracts that I have used have a very clear path explained for a seller who wishes to terminate a FROR agreement. Often, the seller will have a certain number of days to give the buyer notice.
This question was on the national part of the exam. I would also like to understand this more. Any more insight on this would be helpful. Thank you. Question went something like above but the seller got a better offer from a second buyer...what happens then...what are the sellers options with this and also the buyer??
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Thanks TH1. Not a fun scenario to be a buyer with the seller holding out. Just make a firm offer with a contingency to remove FROR within a date certain. 1700 days indicates a very-low motivated seller so you're probably better off finding a different parcel of land to buy.
Hah, "motivated seller." That's state-of-the-art 1970s marketing. Today, price demonstrates motivation and at 1,700 days .... well prices haven't gotten there yet! Best of luck in your dealings.
What if, I (the owner of the idea) want to sell it by myself? I'm right now in this situation and don't know what to do if there is someone how knows it could pls help me.
Hello! And thank you in advance! I'm currently working in a company where we publish videogames. In my free time, I'm developing my video game. Last month the boss told me that there is no problem if I want to make video games in my free time, so last week I decided to share some parts of my video games with the company, just to let them know that I took their advice. But then Friday, they send an email to all the employees, saying that, they added a new role to the company which is the First Refusal for self-developed video games. So I must publish my game through them. Now the question is how can I get out of this.? If I leave the company is this still valid?
Ah, OK, I understand now Vykx ... unfortunately, I cannot answer that. You need to ask your question to an attorney. I know that the answer will require a close study of the language of the contract you have signed with your employer. I suspect if they "just added a new role ..." then anything you have done up to that point should be yours, but only a good contract attorney can give you the best answer. Good luck Vykx!
A right of first refusal does NOT make your home invisible. Not literally or metaphorically. As the seller I’m going to make sure the contract states… “I the seller reserve the right to continue to market my property for the highest and best offer” I make it fully transparent what type of contract I’m in to other potential buyers. Should I get a higher offer from a second potential buyer, I present that offer to the first buyer. It forces the “right of first refusal” due. I maintain full control and continue to have the best option for the highest bid on my home. Even more… With the second buyer knowing there’s another buyer interested in my home, it motivates them to offer their maximum and highest bid to win my home. Please guys… Be very careful who you choose to sign a realtor agreement with. Make sure they understand things on a deeper level.
Thanks for sharing your opinion @brandonleesanders, I don't think you understand. I've helped people buy homes for 33 years, and this is one huge change that digital has brought to our industry. All the points you made are irrelevant, all real estate agents and most buyers are not going to want to see a home that they deem "taken" by another buyer. Yes, the home is still marketed, but all websites will have to show it as "under contract" even though it's a contingent one. I agree with your final comment, be very careful who you choose to sign a Realtor agreement with, because most have your inexperienced opinion and would encourage you to accept the offer instead of looking for a better buyer.
@@Manausa - I’ve been a licensed real estate agent in the state of Georgia since 2012. I’ve helped SELL over 33 million dollars during that time. You are correct the property will be labeled as “under contract” in the MLS but that doesn’t stop additional offers. Yes, a timid agent will see “under contract” and pass on the home whereas sophisticated buyers agent who takes their fiduciary responsibility seriously, picks up the phone, contacts the selling agent, asks about the details of the offer and relays that information to their buyer client. These aren’t super common but I’ve sold at least 6 properties which had “right of first refusal” contracts. 4 of them sold to a secondary buyer with a higher offer. The Atlanta market with a population of 7 million has lots of potential buyers. If my seller is fine with the offered amount, “right of first refusal” or not, I advise them to accept the offer. Perhaps we simply service a different level of client. My clients aren’t typically selling out of necessity and they certainly aren’t buying their next home contingent upon their current home selling.
@@brandonleesanders I understand your point of view, but your production supports my point that most agents are ignorant on this point. When a seller hires me to sell their home, I position them best for what the market will bear. You speak of fiduciary as if that is what most agents do, and you know that is not true. I market to 100% of the agents, not just a small group who work the full process correctly. You know that 80% of real estate agents sell fewer than 3 homes per year right? Well, I market to them too, it's better exposure for my sellers and it brings them more money.
If a seller who entered a First Right of Refusal agreement and then decided to not sell their home at all, could the seller be sued for Specific Performance?
Great question Dev. I'm not an attorney so the short answer is not legal advice. I've enough experience with contracts to tell you that contracts vary from state to state and even municipality to municipality, so the long answer is "it depends on what the contracts say." Most contracts that I have used have a very clear path explained for a seller who wishes to terminate a FROR agreement. Often, the seller will have a certain number of days to give the buyer notice.
This question was on the national part of the exam. I would also like to understand this more. Any more insight on this would be helpful. Thank you. Question went something like above but the seller got a better offer from a second buyer...what happens then...what are the sellers options with this and also the buyer??
thanks for such a practical and concise answer to what this truly means... in real time
Glad it was helpful!
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📘 Get the DIGITAL MARKETING BOOK written by a small business owner, for small business owners! jmre.ws/a77gy
Now I see why plot I was considering has been listed for for over 1700 days! The seller (HOA) has a 1st right refusal.
Thanks TH1. Not a fun scenario to be a buyer with the seller holding out. Just make a firm offer with a contingency to remove FROR within a date certain. 1700 days indicates a very-low motivated seller so you're probably better off finding a different parcel of land to buy.
@@Manausa It's very ironic that listing reads "MOTIVATED SELLER, ALL OFFERS CONSIDERED" Sounds like baloney to me! Thanks for the advise.
Hah, "motivated seller." That's state-of-the-art 1970s marketing. Today, price demonstrates motivation and at 1,700 days .... well prices haven't gotten there yet! Best of luck in your dealings.
great explanation with example...but where did your eyebrows go?
Great question LJBrandt500, darned if I know. Too close to the fire one too many times I suspect 🤓
What if, I (the owner of the idea) want to sell it by myself? I'm right now in this situation and don't know what to do if there is someone how knows it could pls help me.
Vykx, I'm sorry, but I do not understand your question. Can you please try to restate it?
Hello! And thank you in advance! I'm currently working in a company where we publish videogames. In my free time, I'm developing my video game. Last month the boss told me that there is no problem if I want to make video games in my free time, so last week I decided to share some parts of my video games with the company, just to let them know that I took their advice. But then Friday, they send an email to all the employees, saying that, they added a new role to the company which is the First Refusal for self-developed video games. So I must publish my game through them. Now the question is how can I get out of this.? If I leave the company is this still valid?
Ah, OK, I understand now Vykx ... unfortunately, I cannot answer that. You need to ask your question to an attorney. I know that the answer will require a close study of the language of the contract you have signed with your employer. I suspect if they "just added a new role ..." then anything you have done up to that point should be yours, but only a good contract attorney can give you the best answer. Good luck Vykx!
Thank you very much for the support. I'll talk with an attorney.
Best of luck Vykx
A right of first refusal does NOT make your home invisible.
Not literally or metaphorically.
As the seller I’m going to make sure the contract states… “I the seller reserve the right to continue to market my property for the highest and best offer”
I make it fully transparent what type of contract I’m in to other potential buyers.
Should I get a higher offer from a second potential buyer, I present that offer to the first buyer.
It forces the “right of first refusal” due.
I maintain full control and continue to have the best option for the highest bid on my home.
Even more… With the second buyer knowing there’s another buyer interested in my home, it motivates them to offer their maximum and highest bid to win my home.
Please guys… Be very careful who you choose to sign a realtor agreement with.
Make sure they understand things on a deeper level.
Thanks for sharing your opinion @brandonleesanders, I don't think you understand. I've helped people buy homes for 33 years, and this is one huge change that digital has brought to our industry. All the points you made are irrelevant, all real estate agents and most buyers are not going to want to see a home that they deem "taken" by another buyer. Yes, the home is still marketed, but all websites will have to show it as "under contract" even though it's a contingent one. I agree with your final comment, be very careful who you choose to sign a Realtor agreement with, because most have your inexperienced opinion and would encourage you to accept the offer instead of looking for a better buyer.
@@Manausa - I’ve been a licensed real estate agent in the state of Georgia since 2012. I’ve helped SELL over 33 million dollars during that time. You are correct the property will be labeled as “under contract” in the MLS but that doesn’t stop additional offers. Yes, a timid agent will see “under contract” and pass on the home whereas sophisticated buyers agent who takes their fiduciary responsibility seriously, picks up the phone, contacts the selling agent, asks about the details of the offer and relays that information to their buyer client. These aren’t super common but I’ve sold at least 6 properties which had “right of first refusal” contracts. 4 of them sold to a secondary buyer with a higher offer. The Atlanta market with a population of 7 million has lots of potential buyers. If my seller is fine with the offered amount, “right of first refusal” or not, I advise them to accept the offer. Perhaps we simply service a different level of client. My clients aren’t typically selling out of necessity and they certainly aren’t buying their next home contingent upon their current home selling.
@@brandonleesanders I understand your point of view, but your production supports my point that most agents are ignorant on this point. When a seller hires me to sell their home, I position them best for what the market will bear. You speak of fiduciary as if that is what most agents do, and you know that is not true. I market to 100% of the agents, not just a small group who work the full process correctly. You know that 80% of real estate agents sell fewer than 3 homes per year right? Well, I market to them too, it's better exposure for my sellers and it brings them more money.
@@Manausa - You’ve definitely made some valid points.