All REALTORS® on both sides of the transaction now have "mirror image" duties to present all offers and counter-offers objectively and as quickly as possible and to provide written affirmation of presentation in accordance with ethics/laws.
Legally, a counter-offer is an offer that can be timely/properly accepted unless timely/properly rescinded/rejected.
Standard of Practice 1-6 REALTORS® shall submit offers and counter-offers objectively and as quickly as possible. (Adopted 1/93, Amended 1/95)
This is a high visibility issue to the other side and the other side is sometimes suspicious when offers and counter-offers are not timely/properly submitted. This can lead to upset people, ethics complaints, license law complaints and lawsuits.
If you have an issue and cannot quickly resolve it with the other licensee, consider talking to your BIC and/or team leader so they can communicate with their counterpart supervisors at the other brokerage to help resolve the issue.
With many people having smartphones, electronic email, text messaging, Fedex/UPS/courier, social media, and transaction management software; the excuses for delayed delivery are often minimized.
Certainly, emergencies, low tech consumers, deployments, family issues, job issues, travel, clients going absent or incommunicado without explanation, and other reasons might delay delivery. Ensure you make reasonable efforts and communicate to the other side regarding delivery issues. Keep your BIC and team leader and brokerage attorney in the know.
Listing side licensees can use the LLR form for the purpose of this article:
https://screaltors.org/wp-content/uploads/Forms/314.pdf
While the SCR standard forms committee may develop a buyer side licensee form in the near future, currently the buyer side licensee can use a paper document, email document, email attachment document, fax document, social media document, messenger app document, etc. to deliver written information about the presentation of the seller’s offer/counteroffer to the buyer.
Standard of Practice 1-6 REALTORS® shall submit offers and counter-offers objectively and as quickly as possible. (Adopted 1/93, Amended 1/95) •
Standard of Practice 1-7 When acting as listing brokers, REALTORS® shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. Upon the written request of a cooperating broker who submits an offer to the listing broker, the listing broker shall provide, as soon as practical, a written affirmation to the cooperating broker stating that the offer has been submitted to the seller/landlord, or a written notification that the seller/landlord has waived the obligation to have the offer presented. REALTORS® shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. REALTORS® shall recommend that sellers/ landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease. (Amended 1/20)
Standard of Practice 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 counteroffer 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)
In this very competitive market, some buyers may want to immediately submit their highest and best terms offer to the listing/seller side. Some sellers may change their mind about the seller’s stated plans for any multiple offer – highest and best offer term deadlines. So, the earliest and best terms offer may provide one of the best opportunities to purchase the real estate.
Posted by: Byron King on 02/03/22 (This information is only accurate as of 02/03/22. You must contact SCR for updates and changes to this information after 02/03/22 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.