REALTORS® on the buyer side of the transaction have a new ethics duty in 2022.

The new ethics can apply to some other situations as well. See SOP 1-8 and excerpt below.

…Upon the written request of the listing broker who submits a counter-offer to the buyer’s tenant’s broker, the buyer’s/tenant’s broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counter-offer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants have waived the obligation to have the counter-offer presented….

This new ethics duty (SOP 1-8) mirrors the existing ethical/legal duty for REALTORS® on the seller side of the transaction (SOP 1-7) (LLR/SCR314 offer rejection form, license laws).

See NAR ethics Article 1 (SOP 1-8 from 1/2022) (SOP 1-7 from 1/2020)
https://www.nar.realtor/about-nar/governing-documents/code-of-ethics/2022-code-of-ethics-standards-of-practice

The reasoning behind these ethics duties is professionalism and communication. This article describes baseline duties. Professionalism and communication above and beyond these basic requirements is generally appreciated by the other side of the transaction and can help minimize disputes and upset.

If one side submits an offer (or submits a counter-offer -offer), that side wants to know if the offer or counter-offer was timely and properly submitted to the other party for that party’s consideration. Obviously with a returned acceptance or counter-offer or counter-counter-offer or even a rejection document, the recipient is fairly confident that there was a presentation.

Since no response at all may raise sender’s concerns of no presentation, the seller side REALTORS® (e.g., listing agents) always must respond (e.g., rejection using SCR314, acceptance, counter-offer) and the new ethics duty requires the buyer side REALTOR® to respond accordingly in writing if a written request is made. These duties apply even if the offer or counter-offer expires.

Writing includes email, text, and paper. Currently, SCR is considering a form for SOP 1-8.

Delivery (aka providing as soon as practical) can be electronic (e.g., text, fax, email), mail/UPS/Fedex, or hand carried.

Presentation and delivery should be as soon as practical.

A local buyer or seller likely means quicker turnaround time.

A seller or buyer who is difficult to reach (e.g., deployed, traveling, emergencies, incommunicado) can extend the timeframe but document your efforts to present and deliver in order to manage some of your risks if you have to defend your actions in the future on this issue at LLR or in an ethics hearing.

Standard of Practice 1-8 (SOP 1-8)

REALTORS®, acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. Upon the written request of the listing broker who submits a counter-offer to the buyer’s tenant’s broker, the buyer’s/tenant’s broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counter-offer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants have waived the obligation to have the counter-offer presented. REALTORS®, acting as agents or brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a pre-existing contract has been terminated. (Adopted 1/93, Amended 1/22)

The 2021 Legal and Ethical Group Chair Todd Beckstrom’s video on ethics changes for 2022 is on the SCR Youtube Channel. https://www.youtube.com/watch?v=NZJ7HBp1eeg

Contact the SCR with any comments or questions. legal 803-772-5206.

Posted by: Byron King on 02/17/22 (This information is only accurate as of 02/17/22. You must contact SCR for updates and changes to this information after 02/17/22 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)

This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.