Avoiding lawsuits and lost sales when accepting counter offers

The following is brief but might save you a lot of grief as well as add to your confidence when dealing with outside agents. It also might help you get your finance letter on time.

From Ben Vallis with the kind assistance of Donna Codner, Executive Assistanct/Office Manager. NLAR.

Scenario: You are representing the buyer and you make an offer on a property.

                The vendor’s agent sends you a counter offer ... and your client accepts.

Straightforward with one exception; The vendor’s agent does not have the vendor sign and return anything to you except the counter offer.

I’m often surprised by how many agents still insist this is acceptable and that ONLY the counter offer needs to be signed by the vendor. Donna Codner, Executive Assistant/Office Manager @ NLAR checked with our legal representative who assured us this is INCORRECT!

All pages need to be properly signed, initialed, witnessed and returned with the sole exception of page 3 of the Agreement of Purchase.

You may be leaving yourself open to some serious problems if you do NOT get all papers back especially if the vendor, on closing day, decides that the appendix A was never seen or signed by him and therefore does NOT form part of the agreement. It need not be malicious. Maybe he just simply forgot the details.

Thanks for listening. Ben Vallis

This advice came from our legal representative via Donna Codner (thank you Donna) with permission to copy and use where appropriate.

When a Vendor signs a Counter Offer to an Agreement of Purchase & Sale, the Vendor must also:

1) Sign the Appendix A attached to the Agreement and Purchase and Sale to acknowledge having read and received a copyof the Appendix A, and

2) Initial the Agreement of Purchase and Sale.

This practice demonstrates that the vendor acknowledges having read and received the Appendix “A “ and the Agreement of Purchase and Sale when the Counter Offer was made. Signing and initialing in this way serves as proof that these are the documents that form a part of the Agreement of Purchase and Sale and are attached to the Counteroffer. In this situation, the Vendor should not sign (Page 3 of) the Agreement of Purchase and Sale on the line that indicates acceptance of that Agreement.

Donna Codner Executive Assistant/Office Manager NL Association of REALTORS®

 

Tel: 726 5135

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