Legal Library

Realtor® Legal Tip – Do you respond to offers or counter offers that contain more than one addendum the legally correct way?

May 7, 2018

Author: Curtis Bullock

I’ve been asked this question a lot lately. Here’s a simple scenario – Buyer makes an offer with 3 documents –  (1) the REPC, (2) Addendum #1 – Subject to Sale of Buyer’s Property addendum, and (3) Addendum #2 – Deposit of Earnest Money at Title Company addendum.

The seller responds by checking the “Acceptance” box on page 6 of the REPC and Addendum #1. However, on Addendum #2 regarding the Earnest Money, the seller checks the “Counter offer” box.

Is this the correct way to respond to this offer? No.

The thing to remember is that conceptually while the offer is contained on separate documents and multiple addenda, all of it together is considered the “Offer.” So it’s important to be consistent on how you respond. In this situation, the seller should have marked the counter offer box on each part of the offer including page 6 of the REPC, Addendum #1 and Addendum #2. The seller would then simply include Addendum/Counteroffer #3 that included whatever the seller was not in agreement with on the original offer. All other terms of the offer that aren’t modified by the counter offer remain the same.

This technical legal issue is one good reason why hiring a professional Realtor® to help negotiate the transaction takes a lot of headache out of making the largest investment of your life.


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