Acceptance Deadline vs. Response Deadline
July 11, 2018
Frequently on the legal hotline and in classes I hear agents talk about response deadlines. There is not a response deadline in the REPC. There is an acceptance deadline. Let me illustrate why it matters.
Say a Buyer submits an offer with an acceptance deadline of today at 6:00 p.m. This simply means that the Seller has until 6:00 p.m. to accept the terms of this offer.
1) So what happens if the Seller accepts at 5:00 p.m.? Not a trick question…Buyer and Seller are under contract.
2) What happens if the Seller counters at 4:00 p.m.? Simply creates a new offer that the Buyer may accept, reject, or counter.
3) What happens if the Seller counters at 7:00 p.m.? Same as #2.
4) What happens if the Seller counters 3 MONTHS from now? Same as #2.
You see an acceptance deadline is simply a time period in which to ACCEPT the offer. However, a Buyer or Seller are free to respond to an offer at any time they would like. A Seller is free to counter the Buyer’s offer after the offer has expired because the Seller’s counteroffer is a new offer that stands on its own and has a new acceptance deadline for the Buyer.
***The Seller does not need to extend or mention the Buyer’s original acceptance deadline in the Seller’s counteroffer.
If you have questions about contract formation, feel free to call the UAR’s Legal Hotline at 801-676-5211 on Monday, Wednesday, or Friday from 8:30 a.m. to 4:00 p.m.