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December 18, 2018 • Stay Connected!
         


QUESTION:  I have a question regarding a counteroffer. A buyer submitted an offer to my client, and we are going to make a counter. If I use a Form 36 to counter, do I still need to cross out and initial items on the original offer that was submitted? Should the seller initial the original purchase and sale with seller's countered proposed terms and the Form 36?



ANSWER:  Changes to buyer's offer that are reflected on a Form 36 counteroffer from seller do not have to also be reflected on buyer's original offer. For example, if buyer offers a purchase price of $100,000 and seller counters at $105,000 using a F36 Counteroffer Addendum, then on the face of F21, there is no reason for seller to strike through "$100,000" and write "105,000" and initial that change. Instead, once both parties sign the F36 showing the purchase price of $105,000, that establishes the agreed term of the purchase agreement. To then rewrite the same revised terms on the face of F21 creates the potential for error, inconsistencies and confusion.
 
Some brokers like to use the F36 to capture the change in terms but will also strike through the purchase price on the face of F21, writing "see F36 counteroffer". That notation would not require the signature of either party because that notation does not actually change the term of agreement. Rather, it simply serves as a road map to the actual term of agreement. This additional step is not necessary but many brokers think it is useful in preventing confusion by escrow, lenders or either party as to where the agreed purchase price will be found within the agreement. The same tool can be used regardless of the provision of buyer's offer that is modified by the counteroffer addendum.
               
 

 

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 or leave a message at 800.562.6027. Please include your NRDS number.


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Primary Mortgage Rates Survey
(updated every Thursday)  Source:  Freddie Mac
 
  December 13, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.63%  4.07%  4.04%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.77



  December 6, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.75%  4.21%  4.07%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.78



  November 29, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.81%  4.25%  4.12%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.77



  November 21, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.81%  4.24%  4.09%
 Fees & Points  0.4
 0.5
 0.3
 Margin  N/A  N/A  2.76



 
 UPCOMING CLASSES
 
Date Class Location CE  
20-DECNAR Code of EthicsWebinar3.0More info...
28-DEC NAR Code of EthicsLive Webinar3.0More info...

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