An elderly couple named Terrance and Mariah listed their home for sale for $550,000. Their goal
is to downsize from their large four-bedroom/two-bath home to a two-bedroom/one-bath condo
in a beautiful gated community. They are hoping to close on the sale of their home within 30
days from getting into contract with a buyer; however, after holding open houses every weekend
and scheduling private showings for potential buyers throughout each week, their listing agent
has yet to attract an interested buyer willing to submit an offer.
Per the advice of their listing agent, the sellers vacated the property during each open house and
before private showings by agents from other real estate brokerages; however, on one occasion,
the sellers were late in leaving the property before the start of a showing; and it turns out the
agent scheduled to show the property to her clients (prospective buyers) was delayed by terrible
traffic, but her clients Rick and Shannon made it to the property on time. Terrance and Mariah,
wanting to be hospitable, decided to invite Rich and Shannon (buyers) in as they waited for their
agent. Small chatter and in-depth discussions about the property and its sale ensued. During this
time, the potential buyers disclosed that they qualified for $650K for the loan they will use for
their eventual home purchase. Likewise, the sellers also disclosed information about the
condition of the property.
Work as a group to provide single responses to each question below.
Which law governs this case? Please explain your answer.
Assuming Rick and Shannon are interested in purchasing the home, what set of events would
have to take place for there to be an effective offer?
What are some of the reasons why an offer from the buyers in this case might be terminated?
Note : Unless otherwise specified, an offer for the purchase of real property expires after three
days.
How might an effective acceptance come about in this case? Please explain.
What will it take for the sellers and the buyers be in a legally binging agreement for the sale
purchase of the home?
Do you see any risks with the sellers inviting the buyers in and discussing specifics about the
property and their qualifications? Explain your answer.
7.During their exchange, one of the sellers incorrectly stated that the roof was replaced five years
(as opposed to 15 years) ago and was in great condition, but after putting in an offer, the buyers
relied on this information to save money on inspections by not having a roof inspection done.
After the close of the sale, issues began surfacing with the roof, including leaking during heavy
rain. Question:
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An elderly couple named Terrance and Mariah listed their home for sale.pdf
1. An elderly couple named Terrance and Mariah listed their home for sale for $550,000. Their goal
is to downsize from their large four-bedroom/two-bath home to a two-bedroom/one-bath condo
in a beautiful gated community. They are hoping to close on the sale of their home within 30
days from getting into contract with a buyer; however, after holding open houses every weekend
and scheduling private showings for potential buyers throughout each week, their listing agent
has yet to attract an interested buyer willing to submit an offer.
Per the advice of their listing agent, the sellers vacated the property during each open house and
before private showings by agents from other real estate brokerages; however, on one occasion,
the sellers were late in leaving the property before the start of a showing; and it turns out the
agent scheduled to show the property to her clients (prospective buyers) was delayed by terrible
traffic, but her clients Rick and Shannon made it to the property on time. Terrance and Mariah,
wanting to be hospitable, decided to invite Rich and Shannon (buyers) in as they waited for their
agent. Small chatter and in-depth discussions about the property and its sale ensued. During this
time, the potential buyers disclosed that they qualified for $650K for the loan they will use for
their eventual home purchase. Likewise, the sellers also disclosed information about the
condition of the property.
Work as a group to provide single responses to each question below.
Which law governs this case? Please explain your answer.
Assuming Rick and Shannon are interested in purchasing the home, what set of events would
have to take place for there to be an effective offer?
What are some of the reasons why an offer from the buyers in this case might be terminated?
Note : Unless otherwise specified, an offer for the purchase of real property expires after three
days.
How might an effective acceptance come about in this case? Please explain.
What will it take for the sellers and the buyers be in a legally binging agreement for the sale
purchase of the home?
Do you see any risks with the sellers inviting the buyers in and discussing specifics about the
property and their qualifications? Explain your answer.
7.During their exchange, one of the sellers incorrectly stated that the roof was replaced five years
(as opposed to 15 years) ago and was in great condition, but after putting in an offer, the buyers
relied on this information to save money on inspections by not having a roof inspection done.
After the close of the sale, issues began surfacing with the roof, including leaking during heavy
rain. Question:
