My question involves real estate located in the State of: California
My agent submitted a purchase offer with contingency on new loan to the seller's agent for a new residential property yesterday that is $20k less than asking. Seller countered with a $10k increase in price and we verbally agreed on the price.
Here is the problem, the seller used the new C.A.R. Seller Multiple Counter Offer (SMCO) Form (revised 12/15), a sample of the form can be viewed here:
http://start2finishtransactions.com/...nter_Offer.pdf
Instead of signing paragraph 5 (Seller making this counter offer), the seller signed paragraph 8, which implied he accepted this counter offer. There is actually a special note to seller in this section that stated "Do NOT sign in this box until after buyer signs in paragraph 7." The seller agent forwarded us this counter offer with the seller signing paragraph 8 before I signed paragraph 7. So I went ahead and signed Paragraph 7 as the buyer since I accepted the seller counter offer and my agent forwarded the signed copy back to the seller agent.
Today, when my agent tried to open escrow, the selling agent started to backpedal and claimed they received a cash offer for full price on the house but they will try to tell this cash buyer to buy another new home they are building instead. They say regardless, we will have to raise our offer to full price. My question is if I have any legal ground if the seller never signed Paragraph 5 but he/she did signed Paragraph 7 which sounded like the final acceptance signature. I wonder if I have a case against the seller if he or she ended up selling the house to the cash buyer or trying to increase our agreed upon price. My agent thinks they just want more money since they know I really like the house. Any advice will be greatly appreciated. Thank you.
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19. Seller Multiple Counter Offer (SMCO)
The Seller Multiple Counter Offer has undergone revisions for the sake of clarity. Specifically, Paragraph 2, “Binding Effect,” has been updated to indicate the conditions under which the Multiple Counter Offer is considered binding on buyer and seller:
“Seller signs in paragraph 5 [“Seller Makes this Multiple Counter Offer on the Terms Above and Acknowledges Receipt of a Copy”].
“Buyer signs in paragraph 7 [“Acceptance”].
“Seller signs in paragraph 8 [“Acceptance of Seller Multiple Counter Offer”], and Buyer receives a copy of the Multiple Counter Offer with all of the signatures.
“…Prior to the completion of all of the foregoing, Buyer and Seller shall have no duties or obligations for the purchase or sale of the property.”
Paragraphs 3, “Expiration of Seller Multiple Counter Offer,” and 6, “Acceptance of Seller Multiple Counter Offer,” have been changed so the buyer’s response and seller’s selection do not have to occur in same time period. Paragraph 4, “Marketing to Other Buyers,” has also been added to indicate that the seller has the right to continue to market the property for sale and accept any other offers, prior to the seller selection of the SMCO.

