Handling Offers

Handling of Offers

Cincinnati Area Board of RealtorsŽ

Making an offer, negotiating, dealing with rejections and counter-offers, and ultimately coming to agreement on terms can be frustrating and confusing. Questions about the process are directed to the Cincinnati Area Board of RealtorsŽ on a regular basis. The following should answer some of the most common questions, but is not meant to replace the expert advice of a REALTORŽ or an attorney.

Q: Who can accept an offer?

A: The Seller has the sole right to act on an offer and only the Seller can legally initiate or accept an offer. In the case of an estate or some other trustee situation, the person granted power of attorney has this authority. In the absence of written authorization to an agent, only the Seller can sign a contract.

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Q: Do all offers have to be presented to the seller and when?

A: All offers must be presented to the seller as soon as possible. Upon receipt of a written offer, the listing firm shall contact the Seller to arrange for presentation of the offer to the Seller as quickly as possible. Verbal offers must also be presented to the seller. However, the offer must be reduced to writing and signed by all parties to become binding.

Q: What can the seller do with my offer?

A: The Seller may do one of four things: accept it, reject it, make a counter-offer or simply do nothing and let the offer expire.

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Q: For how long should I make my offer open?

A: You should discuss this with your REALTORŽ. Keep in mind that your offer must have a specific expiration date and time.

Q: My REALTORŽ said our offer was the first the Seller received, but then the Seller accepted an offer that came later. Is this allowed?

A: Time or order of receipt of a written offer has no bearing on consideration. The Seller does not have to deal with offers in the order they are received.

Q: Our REALTORŽ told us we were in a multiple offer situation. What's that?

A: This happens when more than one offer is open at the same time. The Seller will be advised by the listing REALTORŽ of the advantages and disadvantages of letting the potential purchasers know about the presence of other offers. The advantage is that the Seller may get a better price because the purchasers may offer more in this situation. But, the disadvantage is that some buyers may elect to revoke an offer from a competitive situation.

Q: We've given our signed offer to our REALTORŽ to present to the Seller, but now we have decided not to buy the house. Can we take back our offer?

A: Offers may be revoked prior to the Seller's acceptance. Once the Seller has accepted an offer, it becomes a legally binding contract.

Q: The seller has received a full price cash offer on his property. However, he is refusing to accept this offer and says he wants to make a counteroffer for more than the asking price. Can the seller refuse a full price offer and counter for more than the listed price?

A: Yes. The seller is not legally required to accept an offer because it is full price and he/she can counter for more than the listed price. However, the listing broker could bring a claim against the seller for his commission based upon the theory that the broker has produced a ready, willing and able buyer on the terms provided for in the listing contract.

Q: A buyer made an offer which the sellers countered. The buyer told the listing agent he was rejecting this counteroffer. The next day the sellers received another offer and accepted it. The following day, the first buyer changed his mind, accepted the sellers’ counteroffer and delivered it to the listing agent. Is there a legally binding contract with the first buyer?

A: No. Once the first buyer rejected the sellers’ counteroffer and communicated that to the sellers’ agent, it could only be accepted if the sellers renewed their offer. Since the sellers did not renew their counteroffer to the buyer, it was no longer open for acceptance by the first buyer.

Q: The Seller was out of town when I made my offer. May I extend my offer?

A: Yes, prior to expiration of the offer, a written extension can be secured.

Q: The Seller accepted our offer, except he wants more time to move out. Is this a counter-offer?

A: Any conditional acceptance or modification of terms of an offer constitutes a counteroffer.

Q: We really want to buy a certain house, but our REALTORŽ says a Contract to Purchase already has been signed and a sale is pending in that property. Our REALTORŽ suggested writing a back-up offer. What's that?

A: A back-up offer is one that is received while a contract is pending. The Seller may accept, reject or counter offer just as in any other negotiation, but acceptance or counteroffer must be contingent upon obtaining a written release from the pending contract.

Q: When is an offer considered "accepted?"

A: The offer must be accepted in writing and the acceptance communicated to the parties.

Q: My REALTORŽ said the Seller accepted our offer over the phone, but then when it came time to sign, the Seller said he had accepted another offer. Is this legal?

A: By statute in Ohio, all contracts for the purchase and sale of real property must be in writing to be enforceable.

Q: May I have my attorney look over my offer before we give it to the Seller?

A: Yes. If you feel more comfortable having your attorney review your offer, go ahead. Remember, a REALTORŽ is a real estate practitioner, not a legal advisor.

Q: Is earnest money required in order for the contract to be legal?

A: No, it is not required by law, but it is usually required by the Seller before he or she will accept an offer, as a measure of "good faith" that the buyer will make a diligent effort to perform according to the contract. See the section on earnest money.