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[Gator By Marriage]

@BMF , I was really surprised to see that place had a Mt. Jackson mailing address. How far is your place from the town? It’s gotta be a bit.

I went to college just down the road from there and was surprised to see a Mt. Jackson address west of I-81. Beautiful area BTW.

 

[alcoholica]

Heard a crazy contract clause recently. The offer had a clause to escalate the offer price to $1,000 over the highest bid up to X dollars. Always gets the craziest before the crash

 

[BMF]

@BMF , I was really surprised to see that place had a Mt. Jackson mailing address. How far is your place from the town? It’s gotta be a bit.

I went to college just down the road from there and was surprised to see a Mt. Jackson address west of I-81. Beautiful area BTW.

Yes, we are nowhere near Mt. Jackson (as far as an address goes). We are just a few miles from Basye (about 3 to 4 miles) and they have a post office in Basye. But the mailing address is Mt. Jackson. Where did you go to school; JMU, Bridgewater?

 

[BMF]

Heard a crazy contract clause recently. The offer had a clause to escalate the offer price to $1,000 over the highest bid up to X dollars. Always gets the craziest before the crash

I think we are at, or very, very near the top. It's crazy. We are hoping to put our house up for sale within 6 to 8 weeks (if we can find a place to live in Florida). We want to move our stuff out of the house (into the FL house) before we list our house (so we can paint, clean, un-clutter, etc).

 

[alcoholica]

• I think we are at, or very, very near the top. It's crazy. We are hoping to put our house up for sale within 6 to 8 weeks (if we can find a place to live in Florida). We want to move our stuff out of the house (into the FL house) before we list our house (so we can paint, clean, un-clutter, etc).

  Good luck, crazy times

 

[soflagator]

Heard a crazy contract clause recently. The offer had a clause to escalate the offer price to $1,000 over the highest bid up to X dollars. Always gets the craziest before the crash

Ironically, my mother is selling a family home right now and actually had that exact type of offer. Buyer demanded a window of a few days to beat any competing price by $1000. It’s under contract at this point, but not sure if that was the one she took.

A month ago another buyer agreed on price but couldn’t get it to appraise within 45k. Finance approval was maxed and they were already putting 35k down. They tried countering with another 30, but that was all they could swing so it fell through.

Talk about chasing a market. Crazy times indeed.

 

[CDGator]

This is great for the seller but sickening if you are turning around and buying in this same crazy market.

 

[soflagator]

This is great for the seller but sickening if you are turning around and buying in this same crazy market.

Exactly. Probably not a bad time to sell and spend the next year or so sailing around the world. For a number of reasons.

It’s not her residence, so it’s not quite as critical as some. But the game plan was to buy a condo somewhere on water with the proceeds. That’s looking tricky right now.

 

[alcoholica]

Ironically, my mother is selling a family home right now and actually had that exact type of offer. Buyer demanded a window of a few days to beat any competing price by $1000. It’s under contract at this point, but not sure if that was the one she took.

A month ago another buyer agreed on price but couldn’t get it to appraise within 45k. Finance approval was maxed and they were already putting 35k down. They tried countering with another 30, but that was all they could swing so it fell through.

Talk about chasing a market. Crazy times indeed.

This is why I laugh when people are so adamant that this market won't pop. My prediction, once school starts in the fall the brakes will start kicking in. It'll stall through the winter and we'll hear big talk come spring, but the summer will be ho hum and the following winter there will be blood on the streets and then.....

 

[alcoholica]

Exactly. Probably not a bad time to sell and spend the next year or so sailing around the world. For a number of reasons.

given the flaccid global stance of this administration, you'd probably get boarded by pirates

 

[CDGator]

given the flaccid global stance of this administration, you'd probably get boarded by pirates

or aliens

 

[soflagator]

given the flaccid global stance of this administration, you'd probably get boarded by pirates

Nobody crosses Joe. We’d be returned home by six and given cool necklaces and a goat just to try to prevent reprisals.

 

[Gator By Marriage]

Yes, we are nowhere near Mt. Jackson (as far as an address goes). We are just a few miles from Basye (about 3 to 4 miles) and they have a post office in Basye. But the mailing address is Mt. Jackson. Where did you go to school; JMU, Bridgewater?

What, you don’t think I went to Eastern Mennonite?

JMU.

 

[NVGator]

Our agent is also their agent.

Bad move IMO.

Great to hear you got as much as you did. I’m assuming with it being cash they waived the appraisal. That’s a nice cabin BMF.

 

[BMF]

Bad move IMO.

Great to hear you got as much as you did. I’m assuming with it being cash they waived the appraisal. That’s a nice cabin BMF.

I agree, I don't like having the same agent....but if the agent is bringing in a 30% higher than asking price offer?? Different story!

Thanks on the cabin....a little bitter sweet getting rid of it. My cousin and I built it over about 20 months (he's very talented, but doesn't build houses, so we made a few mistakes/errors - and I was his "helper"!). I have family outside of the Knoxville area, so I want to build another cabin in the Smokies when this real estate boom slows down. We're also looking in rural central Florida for a lake property (I'd like acreage so I can shoot, but the wife is fine w a residential lot).

 

[BMF]

What, you don’t think I went to Eastern Mennonite?

JMU.

Does anyone get laid at that school? I love going into Harrisonburg. The downtown has gotten really nice over the last decade. I meet my cousin there often (he's between Bridgeport & Staunton off of 42). JMU has become a really legit mid-size university - and Harrisonburg has become a nice 'small city'.

 

[NVGator]

Heard a crazy contract clause recently. The offer had a clause to escalate the offer price to $1,000 over the highest bid up to X dollars. Always gets the craziest before the crash

This is highly frowned upon and National Association of Relators believes it's completely unethical. Our area, Brokers will flat out reject any offer with an acceleration clause.

Here's the opinion of the NVAR Legal Team.

Acceleration Clause- Is it Legal?

Tiffany Banks, General Counsel July 21, 2020

In our opinion, and consistent with the Nevada Real Estate Division position, inserting an “acceleration” clause in a contract would be a violation of fair dealing. The Nevada Law and Reference Guide specifically addresses this and states that the “acceleration clause” found in general contract or financing law is different than what we are talking about here.

According to the Division, “an acceleration clause is a clause in which the offeror promises to pay a certain set amount above the highest offered sale price and usually provides for a maximum or cap amount. An example of an acceleration clause is, “I will pay $2,000 over the highest offer up to $300,000.” This type of clause automatically gives one offeror a stated advantage over other offerors and may not allow fair dealing for the other offerors. Though the previous two activities (disclosing offer terms and inserting an acceleration clause) are not a direct violation of any law or regulation, and there is some controversy regarding this, nevertheless, the Real Estate Commission has found these practices highly suspect.”

We have gotten many calls over the years from members asking, “Can I actually get in trouble and with who, if I put this acceleration clause in, if it benefits my client and it is not illegal?” So why then, if this clause is not a violation of any law or regulation, am I being told to keep these clauses out of my contract?

The answer is simple. We understand that in today’s market there are more buyer than sellers. We understand that you are working diligently to get an accepted offer on that dream home for your buyer. While we support your dedication to your clients, we are always looking for ways to keep our members out of trouble and having to appear in front of the Nevada Real Estate Commission. The Commission, in their own discretion, can fine you up to $10,000 per VIOLATION. As the Division stated earlier, the Commission has found that these practices are highly suspect and a violation of fair dealing. That is why, unless you want to risk being brought in front of the Commission on this very issue, we caution licensees to keep in mind the laws that govern their license and their duty to deal fairly with all parties to a real estate transaction.

We always recommend you talk to your own attorney if you want to insert this clause.

Statements made by the Nevada REALTORS® Legal Information Line attorneys on the telephone, in e-mails, or in legal eNews articles are for informational purposes only. Nevada REALTORS® staff attorneys provide general legal information, not legal representation or advice regarding your real estate related questions. No attorney-client relationship is created by your use of the Legal Information Line. You should not act upon information you receive without seeking independent legal counsel. Information given over the Legal Information Line or in these articles is for your benefit only. Do not practice law or give legal advice to your clients! Inform your clients they must seek their own legal advice.

 

[BMF]

This is highly frowned upon and National Association of Relators believes it's completely unethical. Our area, Brokers will flat out reject any offer with an acceleration clause.

Here's the opinion of the NVAR Legal Team.

Acceleration Clause- Is it Legal?

Tiffany Banks, General Counsel July 21, 2020

In our opinion, and consistent with the Nevada Real Estate Division position, inserting an “acceleration” clause in a contract would be a violation of fair dealing. The Nevada Law and Reference Guide specifically addresses this and states that the “acceleration clause” found in general contract or financing law is different than what we are talking about here.

According to the Division, “an acceleration clause is a clause in which the offeror promises to pay a certain set amount above the highest offered sale price and usually provides for a maximum or cap amount. An example of an acceleration clause is, “I will pay $2,000 over the highest offer up to $300,000.” This type of clause automatically gives one offeror a stated advantage over other offerors and may not allow fair dealing for the other offerors. Though the previous two activities (disclosing offer terms and inserting an acceleration clause) are not a direct violation of any law or regulation, and there is some controversy regarding this, nevertheless, the Real Estate Commission has found these practices highly suspect.”

We have gotten many calls over the years from members asking, “Can I actually get in trouble and with who, if I put this acceleration clause in, if it benefits my client and it is not illegal?” So why then, if this clause is not a violation of any law or regulation, am I being told to keep these clauses out of my contract?

The answer is simple. We understand that in today’s market there are more buyer than sellers. We understand that you are working diligently to get an accepted offer on that dream home for your buyer. While we support your dedication to your clients, we are always looking for ways to keep our members out of trouble and having to appear in front of the Nevada Real Estate Commission. The Commission, in their own discretion, can fine you up to $10,000 per VIOLATION. As the Division stated earlier, the Commission has found that these practices are highly suspect and a violation of fair dealing. That is why, unless you want to risk being brought in front of the Commission on this very issue, we caution licensees to keep in mind the laws that govern their license and their duty to deal fairly with all parties to a real estate transaction.

We always recommend you talk to your own attorney if you want to insert this clause.

Statements made by the Nevada REALTORS® Legal Information Line attorneys on the telephone, in e-mails, or in legal eNews articles are for informational purposes only. Nevada REALTORS® staff attorneys provide general legal information, not legal representation or advice regarding your real estate related questions. No attorney-client relationship is created by your use of the Legal Information Line. You should not act upon information you receive without seeking independent legal counsel. Information given over the Legal Information Line or in these articles is for your benefit only. Do not practice law or give legal advice to your clients! Inform your clients they must seek their own legal advice.

That's interesting.

Here in Virginia realtors are allowed to send "coming soon" (before the listing goes live), but Florida does not allow it. My wife has been working with a realtor in Florida and they're not allowed to send any 'coming soon' listings, but they do get an "MLS update" about an hour or so before the listing is to go live. In Virginia, a lot of the "coming soon" listings will never go live, as the seller will accept an offer before it ever hits the MLS.

 

[CDGator]

I agree, I don't like having the same agent....but if the agent is bringing in a 30% higher than asking price offer?? Different story!

Thanks on the cabin....a little bitter sweet getting rid of it. My cousin and I built it over about 20 months (he's very talented, but doesn't build houses, so we made a few mistakes/errors - and I was his "helper"!). I have family outside of the Knoxville area, so I want to build another cabin in the Smokies when this real estate boom slows down. We're also looking in rural central Florida for a lake property (I'd like acreage so I can shoot, but the wife is fine w a residential lot).

My dad built a cabin in WNC about 30 years ago on the side of a mountain. The driveway is gated off and someone walked up half way, broke into the Smokey and stole the 4 wheeler. Then went on up to the cabin and stole whatever they could take out on the 4 wheeler. A neighbor saw a truck leaving with a 4 wheeler loaded and called the sheriff. They did catch the guy but never found the gun they stole. Seedy and I went up last fall and installed video cameras for him. Surprised we don’t see more wildlife around the cabin. Dad will probably need to sell it in a few years.

 

[NVGator]

That's interesting.

Here in Virginia realtors are allowed to send "coming soon" (before the listing goes live), but Florida does not allow it. My wife has been working with a realtor in Florida and they're not allowed to send any 'coming soon' listings, but they do get an "MLS update" about an hour or so before the listing is to go live. In Virginia, a lot of the "coming soon" listings will never go live, as the seller will accept an offer before it ever hits the MLS.

We never had “Coming Soon” until Covid hit. Then, the MLS Team created a “Coming Soon” status that allowed 21 days before going Live. You couldn’t show Coming Soon at all or it would go Live. If you did, it was a $5,000 fine. Agents were getting offers site unseen and accepted. It became a schit show. As of May 1 our MLS Team has suspended Coming Soon due to Brokerage feedback that it’s a schit show for 12 months.

Acceleration Clauses violate Fair Housing Law as does writing a personal letter to the Seller. No Mas.