Is this legal?

[Sam Rios]

I got my real estate license last year just for investment purposes, learned a lot since then (and continue to), and made a goal to acquire at least one property this year. My wife and I have looked at several properties in last few weeks but made no offers. Our neighbor we don’t know has had their house for sale since October, and we decided to take a look.

The seller’s out-of-town agent who specializes in probate, set up a time yesterday for us to see it while the owner was present. It went well, we liked it and got some good info from both the seller in-person and the agent over the phone. The seller is in probate / pre-foreclosure, it was his deceased mom’s house, about $60k is owed on the mortgage, his utilities got turned off over the holidays, he doesn’t maintain the house or yard and doesn’t seem to work, had a “pepper” grow house in a bedroom, and he was open to creative financing. He was well aware from his agent the threat of losing it all if he didn’t sell. The asking price is $340k. 

I wrote an offer for $290k to include a mortgage that would pay off the existing, and finance the rest through him at 0% interest over 30 years with a $30k cash down payment to him. I was ready to negotiate the down, price, interest rate and term. 

The agent responded with a text saying “I just reviewed your offer. In order for your offer to be competitive and for a seller to even look at seller financing, and a mortgage assumption, you will need to pay at least list price, if not higher. You wrote up both contingencies and wrote up a lowball offer. The only person that benefits is you. In order to get your offer accepted, you will need to write up an offer that is beneficial for both you and the seller. This is not it.”

I responded with “I don't believe that getting the house sold rather than foreclosed on is only in my favor. In today's market, there isn't much competition and extraordinarily high rates, making houses in our area sit on market as the price gap increases. That is not in the sellers best interest. This is a good starting point for negotiation, which is part of the process, but that is the sellers decision and I would appreciate you presenting my offer to the seller per Florida statute, and letting him decide what to do.” 

He said “It is my sellers decision. It’s a NO”

I said “Please provide me signed documentation that the seller has declined my offer and does not wish to counter.” He sent an email telling me not to communicate directly with his client, who, again, is my neighbor, and I haven’t heard from him since.

The agent stating that he just reviewed the offer and it’s a no indicates to me that he didn’t present my offer, which is illegal. Is this okay and should I just move on or is this something that should have some recourse, like a DBPR/FREC complaint? Can I talk to the seller directly?

I’ve followed guidance from BP such as starting low, starting with 0% interest and other things. This won’t slow down my momentum, but it being my first offer and having to deal with someone that seems to be doing things the wrong way is discerning. Any advise is appreciated!