Can I get outbid while under contract? Options?

[YiBing T.]

Hello BP Community, 

I'd like to get your opinion on a situation. I found a property that was marketed for sale while I was on a home inspection of another property just a few doors down the street. I contacted the selling agent personally and started working on the contract. Long story short, after a few backs and forth, and a long delay from the seller's agent (due to health issues), we finally got the contract signed. Just about 30 minutes after I send back the ratified contract to the seller agent, the seller agent emailed me back and said they are receiving multiple offers and ask me to send in the best. 

My question is since I already have a ratified contract, could I still be outbid?

What are my options with the situation like this? 

If I decide to settle with the seller to void the contract we are in now, what would be a fair dollar value to settle (we prefer to settle without any legal actions)?

Are there anything else I should be aware of? Thank you. 

[Bob Floss II]

@YiBing T. I'm having trouble following the facts, but it sounds like you received a counter from the seller with the seller signature, and you then changed the contract again, signed it, and sent it back. When you made a change to the contract, you effectively made it a new offer and the sellers signature is irrelevant. You do not have a contract.

If I'm reading it wrong and you did not make a change to the contract, and you signed the offer that was sent to you by the seller, you have an executed contract. Your options at that point are to enforce your rights under the contract, however at this point the contract effectively becomes as-is. The seller will not give you any credits or make any repairs in an attempt to kill the deal. Forget getting so much as an extension on your mortgage contingency so get your lending in order and ready to close on time. 

To those asking about enforcing contract rights, there is a simple solution. You have the right to record the contract so it shows up on title. It creates a cloud on title the title company must address in order to close. The seller must provide proof the contract is no longer in effect or they cannot proceed to closing with a new buyer. Contact a local real estate attorney and they should be able to handle it.