In an environment of multiple offers, a listing agent might be presented with an offer containing what is generally referred to as a ‘‘referential purchase price clause’’ (RPPC). If this is considered, the seller should be made aware of the possibility that some or all of the potential buyers may not submit new offers. In these situations, the seller may wish to consider refusing all the offers and inviting each of the potential buyers to submit a new offer. In discussing these options, the seller’s agent should discuss the relative merits and potential pitfalls of each.īecause countering more than one offer at a time is problematic and a potential source of lawsuits, BCFSA recommends that only one offer be countered at a time.īCFSA advises that extreme care be taken when multiple offers over the listed price are received after short market exposure. An agent for the buyer, or a limited dual agent, must not disclose that the buyer will pay more unless instructed to do so by the buyer.Īfter the seller has considered all of the offers, the listing real estate professional should advise the seller of the options available i.e., the seller can reject them all, accept one, provide all buyers with the opportunity to submit new offers by a specific date with the understanding that there is a multiple offer situation, or counter-offer one of the offers. An agent for the seller would be obligated to disclose that the buyer will pay more (if this is known to the agent). To minimize the significance of the order of presentation, the listing real estate professional should explain to the seller prior to the presentation of the first offer that there is a total of (so many) offers and they will be presented in the order in which they were received.Ī real estate professional must always consider all expected agency obligations in offer presentations. If there is any question about which offer should be presented first, the offers should be presented in the order in which they were received to avoid controversy. If the listing real estate professional has more than one offer on a property ready to be presented, the first thing to do is to tell the seller how many offers may be presented so that there is no suggestion of accepting or countering an offer before all offers have been presented. If the real estate professional acted as a buyer’s agent in the past sale, then he or she would not owe this fiduciary duty of disclosure to the seller but would be required to disclose any third-party interest to the first buyer. This applies whenever the real estate professional acted as a seller’s agent in the first sale, and includes cases where the listing brokerage becomes aware of the possibility of a resale to a different buyer. If a seller wishes to consider a subsequent offer, the real estate professional should advise the seller to seek legal advice. Real estate professionals should be aware that any written offers received prior to the Completion Date of an existing sale must be presented to the seller. Unless otherwise instructed by the seller, the listing real estate professional should ensure that any other representative involved knows there will be competitive offers. The only exception would be if the listing real estate professional has specific written instructions from the seller on the listing not to present particular types of offers. If more than one written offer on a specific property is made before the seller has accepted an offer, all written offers must be presented to the seller. Multiple Offers - Presentation Procedures When more than one offer is being presented, the listing real estate professional will allow only the real estate professional(s) who introduced the offer being dealt with at the time to be present. While there is no real requirement to do so, it seems that the listing real estate professional and seller have nothing to lose by this procedure and it ensures that the selling real estate professional, who has introduced the offer, has a full opportunity to make the presentation. Unless the client instructs the real estate professional otherwise, there is nothing wrong with having the selling real estate professional who introduced the offer attend with the listing real estate professional and allow that selling real estate professional to explain the offer to the seller. Attendance of Other Real estate professionals Board/association members should be familiar with their board’s/association’s procedures. While many real estate boards/associations have rules on this topic, which are similar to the following guidelines, real estate professionals are reminded that these are the minimum requirements. Guiding Principles for Offers and Counter-Offers.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |