This is a topic that comes up from time to time when we have home buyers that are in the market for real looking at real estate listings with me. We always happen on a home that seems to have been in escrow but is no longer in escrow.
The name for a real estate listing such as this is BOM - Which stands for Back on Market.
The home, real estate listing, is literally Back on the Market.
Sometimes this is a taunt by the seller's agent to the buyer, who are in escrow/contract with to perform.
I have seen this work effectively from a seller's agent point of view. As far as from a buyer's point of view, not so much.
The home buyers sometimes get cold feet. It could be a matter of not being property approved for the home loan before that particular buyer started to write offers. For shame to their agent as well not asking the right questions of the buyer's lender.
Sometimes home buyers find out information about the home that is making them cancel.
At other times the home buyers stop communication with their agent and others because of embarrassment or because of scheduling issues. Life get's busy from time to time.
In some of those cases, the seller gets nervous. The seller's agent communicates with the buyer's agent. The questions are asked and if the buyer has cut all communication with their agent, the seller's agent may issue them a notice to perform and put the home back onto the market.
This is known as "Subject to cancellation of previous escrow". That phrase is the legalese that is required in the Confidential remarks in the multiple listing service so the other agents in the world know what is happening, at least by title.
Sometimes this is used, as I stated, to get the buyer to get moving and start doing what they promised.
At other times, it falls on deaf ears and the buyer really has changed their mind and has no intention of proceeding with the purchase of the seller's home.
As long as you as a real estate buyer know what is going on with a listing such as this, you are going to be prepared to offer or view accordingly.
If you have any doubts and if your agent makes it sound like it's 100% certain that the buyer is going to cancel, even when the seller's agent is telling yours that they don't have a "signed cancellation" in hand, be wary.
A lot of the time the situation that kicked off this chain of events to "cancel escrow" get repaired.
If that does happen, ensure that your agent is having the seller's agent hold onto your offer to keep it in back up position if the opportunity is present. That way if the home does fall out again, you will be first up and most likely the seller is not going to be keen on continuing to work with that buyer.
I'm Connor MacIvor with REMAX Gateway. Please let me know when you are ready. I'd love to meet with you in my offices at 25129 The Old Road, Santa Clarita CA 91381. I am at the office most days and don't have days off. All I will need is a phone call from you to set the appointment to meet.
Also, as of February 2019 we have moved offices. Still with REMAX Gateway/Santa Clarita/Valencia - We have moved up the street to the large red brick building that is down the street from in and our burger.
If you are a person that has hired the wrong agent, when you are out of contract, feel free to contact someone that you deem could do a better job. If you deem that to be me, I'm here for you. Be safe and thanks for taking the time to read this Santa Clarita real estate blog article.