:biggrin GUESS WHO? It’s me again…with (yes I know) another question…

When purchasing an AS-IS property from the bank, is it impossible to back out before closing if needed?

I have this property that I am trying to submit an offer for but the agent is giving me a VERY hard time. She is telling me that the bank will absolutely not add a contingency for backing out, even if it’s for good cause.

I told her I will not sign a contract without a means of backing out if needed. She told me that when a property is sold AS-IS, it is just that AS-IS and there is no backing out no matter what you find unsatisfactory…IS THIS TRUE?

My gut instinct is that she is completely lying to me, she will not send my offer until I agree with the banks P/C which does NOT have a backout contingency…HELP!!


Jeez, never ever ever say “I want a back out clause”

That’s so noobish. Of course she won’t take your offer.

Say you want to place an offer subject to satisfactory inspection, that’s it, that’s all.

Should be enough.

Every REO I’ve ever offered on was being sold As-Is, but that doesn’t mean you can’t add an inspection contingency. Keep in mind, though, that the more contingencies you add, the weaker your offer looks- especially since you’ve pretty much told the listing agent already that there’s a good chance you are going to back out of the deal.

Like any other seller, they just want to get the house sold- they want to see nice, clean offers. You can add whatever contingencies you want, though- it’s your offer.

Steph :cool

Well I didn’t word it as “I want a back out clause”, I asked her what kind of contingency clause is included in the purchase contract and she straight up told me “None”. She said once it’s signed, there is no backing out, even if it’s for good cause.

I thought this sounded fishy so I asked MY RE agent and my agent said that a buyer ALWAYS has a right to back out if there is good cause. My agent said the contingency clause should sound like this:

“purchase is contingent on buyer’s investigation of property suitability, including but not limited to property condition, zoning, inspections, school districts and/or the property appraising for not less than the purchase price.”

So I ran this by the banks agent and she is still insisting that there is no clause allowed!! She also said there can’t be any “subject to inspection” clauses because it is an AS-IS property and AS-IS means AS-IS…her words verbatim!!


Capgiant - I am no expert in real estate, so take my advice with a grain of salt… Having said that, I deal with contracts and negotiations for a living. One thing I learned in all the negotiations I have been involved with is that talk is cheap. Put your offer in paper and send it to them. One thing is to discuss conditions and terms verbally - put it on paper. Any offer on paper looks much better than a verbal one… At least this is my experience…

And once you put your offer in, if they counter, insist in getting the counter in writing - this will give you the opportunity to close the deal immediately by accepting it if you like the counter.

Bottom line - don’t worry too much with what she is telling you on the phone. Write your offer and send it to her.

And one more thing - real estate agents are required to bring all offers to their clients (unless the client has specifically instructed them to not bring offers that don’t meet certain criteria). So when you send your offer, if she tells you that she is not going to present, I suggest you remind her about her duties… Nice but firmly…

Good luck! Let us know how it goes…

Capgiant - I finished my last post before I saw your last one…

I would double check this information with another realtor - a buyer has the right to back out only if he puts a contingency clause and the seller accepts it. Note that the contract functions as the instruction to the escrow agent. If you don’t have a contingency written in the contract stipulating that you can back out of the deal, I doubt the escrow agent would return your earnest deposit. You would probably have to sue (and my gut tells me you would have very low likelihood of wining)

My suggestion - Stop “running things by the agent” - put your offer in writting and send it in… The time you spent going back and forth with the agent, you could have written your offer and sent it in… Good luck!

Okay so I love all the help you guys are providing but here is the problem:

This agent represents the bank, she WILL NOT let me send any offers unless it is thru HER…I can’t even GET my offer to the bank…she is the barrier!!

j1dias: about the clause, I can’t even present the clause to the bank to see if they will accept it because she (the agent) won’t allow me to do so…everything has to go thru her and she won’t allow it!!

What do I do??

So, what is YOUR Realtor doing to help you in all of this? The bank’s Realtor has a fudiciary and legal responsibility to represent the interests of her client, not yours.


Capgiant - put your offer in paper and send it to her! You have to go through her… This is the reason why she is called an agent… She is the Bank’s agent… However she has to present the offer to the Bank… Don’t waste your time negotiating with her verbally… She is not the decision maker… The bank is… You need to be negotiating with the bank (through her, but with the bank). How you do it? Put the offer in paper and send it to her… She has to present to the bank (unless she was told not to by the bank, which I doubt).

If you put in paper the bank has 3 options (1) accept - IUHUUU!; (2) counter - insist to get the counter in writing because then if you like it you can accept it and close the deal immediately; (3) decline/not respond - you move on, or send another offer if the deal is still good, or wait few weeks and send the same offer…

Just my thoughts… Good luck!

My RE agent has been privately advising me and guiding me. But she seems to think that she could lose her license if she helps me directly. Her reasoning is that I am profiting from a property that does not have title in my name and she says that her participating in that in any way is against the rules and she could lose her license.

Anyway, about this pain in the butt Agent; I have decided to move on, I am not going to fight with this lady anymore, she acts like she is the actual bank and she seems to think it is her making the decision…it should not be this hard!!

I HAVE already sent her my formal offer, that is what brought about all of this arguing between she and I…she never once submitted it to the bank…she has been spending the last few days arguing with me…


OMG, I’m going through the something similar to this. She has to submit your offer regardless. Tell her that is your offer and you’ll let the bank decline it if they so choose.

Also, I don’t see why your realtor would have a problem representing you. If you’re a principal in the transaction then she needs to assist you, if you are electing her to represent you. As far as I know…

I’m not big on bank owned properties though. I try to buy them before they become bank owned and usually without realtors. I only need them if I want to get on the MLS and I have no problem paying them accordingly, so realtors aren’t bad to work with, you just have to be in some type of control.

Therefore, just put in the offer with your contingency and tell her to make it happen. If the bank declines it, then move onto the next deal. That’s how I’d handle it… Then follow up with the bank a month later if the property is still for sale.

CAPGIANT you are right on. A realtor can tell you anything (verbally). If is on paper in the form of a contract he/she has the duty and responsibilty to present that offer.

If the contract you are using is a standard state contract adopted by the state thru the RE commision then it should already contain that clause, just sign off on it. “As is” means the seller will not make any repairs if any are found thru your various inspections.

Realtors :banghead

Melreator - I believe you may have missed the mark here… Capgiant does not want an As Is contrat. She wants a contract with contingency… And the realtor is giving her the run-around… :O)

Submit the offer, the realtor has the responsibility to submit the offer whether she likes it or not. If she does not report her to a local or regional association of realtors. Tell her that upon submission that if the bank declines the offer that you want formal notication directly from the bank that they have declined your offer. Don’t be bullied by a realtor. Yes they are a necessary evil at times but I would love to get my hands on this woman. I would not tolerate her attitude.

Thats a load of crap.There are a lot of ways to back out.The listing agent may be trying to avoid other offers because they may have their own offer in?.

As a real estate agent I know that some of the banks are coming back with counter offers with the conditions of no contingencies. This means no inspections!!! Our office recommends that if the bank does this on your offer that you DO NOT accept this counter offer.

Well guys, I am sure everyone has been waiting for an update so here it is:

I sent her a message stating that I am officially submitting my offer and I laid out the offer and terms and price and all that good stuff and since that email 2 days ago…She has completely cut off contact with me now, she sent me an email simply saying:

“I will no longer spend any time on this” WTF???

:angry I am totally flabbergasted to say the least what a capital “B” :angry

If you feel that this agent has treated you badly or not done her job you could always talk to the manager of her company, that is assuming that is not the broker. Also in the state of California that the Real Estate Board will look into agents if a complaint is made.

I take it that you did not use an agent on your side, this is from one of your previous posts. Had you used an agent then they might have gotten a better reponse, but some agents are just pains in the tush anyway.

Yes she was the Broker. I think I would rather slap her A** instead of reporting her…she was extremely rude…anyway onto the next one…