Realtor® Legal Tip – Why aren’t more buyers using Section 8.3(b)(i) of the REPC?
February 7, 2020
Author: Curtis Bullock
If you haven’t considered this, go back and look at Section 8.3(b)(i) where it allows the seller and buyer to negotiate whether some, all or none of the earnest money will go hard after the Due Diligence Deadline. It allows the buyer to put some more skin in the game and make their offer look more competitive to a seller. Most of the REPC’s I’ve seen lately have $0.00 in the blank line of that section. I’m wondering why this is.
When the REPC was revised a couple years ago the blank line in 8.3(b)(i) was added so buyers could use this section strategically, especially in multiple offer situations and in this sellers market (in a buyers market it would make sense that this section would not be used as often). It also was an attempt to give the seller more assurance that the buyer is serious about their offer. From the seller and listing agent standpoint, listing agents could advise their sellers to counter REPC’s that have $0.00 in this section and ask for some (or all) of the earnest money to go hard after the Due Diligence Deadline depending on the situation.
Give this one some thought and re-think your use of 8.3(b)(i) of the REPC. It might be something you can use whether you represent a buyer or seller.