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Weekly Membership Newsletter
July 31, 2018 • Stay Connected!
         

QUESTION:  I am the listing broker of a house priced at $184,900. I received 2 offers and we asked both parties for their highest and best. The seller picked the best of the 2 which was $190,000 with no home inspection contingency. The seller was agreeable to the price but we countered with changes to the closing office, title company and crossed out that the home was connected to gas because it is not. Buyer came back asking for $3600 worth of concessions. We were a bit surprised but technically we did make a counter and they had the right to come back. We had not replied to their request when, the next day, we received 2 new offers. We rejected the buyer's counter offer and told them, again, that they should bring their highest and best. Buyer's broker then asked if they can go back and accept my sellers original counter offer. I said no, that their counter offer cancelled seller's counter offer. I did not hear back from the original broker that evening with a new offer so we accepted one of the new ones. The next day, the original broker said he spoke to his designated broker and they feel they had mutual acceptance and were already under contract with us. I told him that we never had mutual acceptance. No documentation was ever delivered to my office with an accepted offer. Is there an issue here?



ANSWER:  Based on the facts presented, there is no issue. The boiler plate language of the Form 21 makes it very clear that any modification to the terms of the PSA, other than correcting seller's name and/or correcting seller's disclosure of FIRPTA status, constitutes a "counteroffer". Based on the facts presented, seller "countered" buyer's offer. To create a binding agreement, a counteroffer must be accepted. A counteroffer to a counteroffer does not create a binding agreement, rather, it perpetuates negotiations and allows the original counteroffering party (the seller in this case) to terminate negotiations or counter further. From the facts presented, it appears that buyer "countered" seller's counter offer. Based on the facts presented, seller and original buyer never created a binding PSA and seller was free to sell to another buyer. If a dispute persists between seller and original buyer, broker should advise seller to seek legal counsel.

 

The Legal Hotline Lawyer does not represent Washington REALTORS or its members. To browse through our database of past Q & A's, visit www.warealtor.org. Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to legalhotline@warealtor.org . Please tell us your NRDS number when you e-mail the Hotline with your question.


 

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Primary Mortgage Rates Survey
(updated every Thursday)  Source:  Freddie Mac
 
 July 26, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.54%  4.02%  3.87%
 Fees & Points  0.5
 0.4
 0.4
 Margin  N/A  N/A  2.76



 July 19, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.52%  4.00%  3.87%
 Fees & Points  0.4
 0.4
 0.3
 Margin  N/A  N/A  2.76



 July 12, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.53%  4.02%  3.86%
 Fees & Points  0.4
 0.4
 0.3
 Margin  N/A  N/A  2.76



 July 5, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.55%  4.04%  3.87%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.77



 July 5, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.52%  3.99%  3.74%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.77



 
 UPCOMING CLASSES
 
Date Class Location CE  
16-AUG  The Hotline Vs. The Bottom Line Spokane 7.5 More info...
16-AUG  NAR Code of Ethics Webinar Live Webinar 3.0 More info...
23-AUG  CORE & More Longview 7.5 More info...
28-AUG Current Issues in WA Res REWenatchee3.0More info...
29-AUG  To Disclose or Not to Disclose Yakima 4.0 More info...
29-AUG  Don't Get Whacked by the WACs Yakima 3.5 More info...
29-AUG  NAR Code of Ethics Bellingham 3.0 More info...
30-AUG  The Hotline Vs. The Bottom Line Walla Walla 7.5 More info...
         

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REGISTRATION IS OPEN FOR THE SYMPOSIUM
Jackie Leavenworth is back! Join Washington REALTORS® at the Fall Business Symposium on September 13th for a full day including three engaging sessions taught by Jackie. We'll be back at the SeaTac Conference Center at the Airport for this one 7.5 CE, parking, and lunch are included. Register today!
 
  
COE WEBINARS ARE BACK BY DEMAND
Washington REALTORS® will host COE Webinars starting in August to assist members with completing the mandatory training. Don't wait until the last minute, though! These webinars are capped and they fill up fast...
 
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