Realtor® Legal Tip – “Acceptance” vs. “Notice.”
October 10, 2019
Author: Curtis Bullock
This one came up the other day so I thought I would do a refresher. It’s a contract law concept as it relates to the standard Utah REPC.
1) How is an offer or counter offer Accepted according the the REPC? Section 23 indicates that Acceptance occurs when 2 things happen: 1) the offer is signed where noted to indicate Acceptance, and 2) the fact that the offer has been signed as Accepted has been communicated to the other party.
2) What about a Notice and how is that different? Suppose you need to send over a Notice of Cancellation to the Seller after your Buyer decides to cancel based on the Due Diligence. How does this need to happen? Section 23 of the REPC as described above is inapplicable. Instead, a Notice is governed by Section 18 of the REPC. For a Notice to be effective there are 3 things that need to happen: 1) it must be in writing, 2) it must be signed, and 3) it must actually be received by the other party.
So be sure to understand the difference between an Acceptance of an offer or counter offer and a Notice (i.e., Notice of Cancellation, etc) and don’t confuse the two. They are very different.