Realtor® Legal Tip – When should you use the Multiple Offer Addendum to the REPC?
November 13, 2018
Author: Curtis Bullock
Suppose you are the listing agent and the seller has received 3 offers. The seller decides she would like to counter each of the offers all at the same time. Is there a risk in doing this? How could this be done?
The risk in doing this is that more than one buyer could accept the seller’s counter offer which could cause problems for the seller (i.e., selling the property twice). The way to solve this potential problem is to use the Multiple Offer Addendum. This form has a very narrow purpose and should only be used when the seller is doing simultaneous counter offers.
In Section 3 of this form, there is language that prevents the seller from being legally obligated to more than one buyer at the same time. So if one or more of the buyers were to accept the counter offer, there is no binding contract until the seller provides written notification that one of the buyers has the successful purchase contract.
*One thing to note is that the UAR recently approved a standard notification form that a seller may use to give the buyer notification that is required in section 3 of the MO Addendum.
Be sure to review this form and the new buyer notification form and use them when appropriate.