What to do with an unclear offer

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A pair of glasses and a silver pen sit on top of a contract.

02/13/2015 | Author: Editorial Staff

My client received an offer on her home in which the second box in Paragraph 4A(2) is checked indicating that the contract is not subject to the buyer being approved for financing. However, the buyer attached a completed TREC Third Party Financing Addendum for Credit Approval to the contract. What should we do with this offer?

With your client’s agreement, you should ask the buyer’s agent to clarify the buyer’s intention and require the buyer to resubmit an offer that clearly indicates the buyer’s intent.

The TREC Third Party Financing Addendum for Credit Approval should only be attached to a contract in which the first box in Paragraph 4A(2) is checked. This contract does not clearly express the buyer’s intended offer.

You would follow the same process for an offer in which the first box in Paragraph 4A(2) is checked and a completed TREC Third Party Financing Addendum for Credit Approval is not attached.

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Categories: Forms, Legal
Tags: forms, legal, legal faq, addendum


Comments

Traci on 02/19/2015

When a commission amount is offered and stated in MLS. is buyers agent at liberty to write into the contract whatever percentage they would like?

Alexandra Fincher on 02/19/2015

I agree, we need to get back t the old fashion way.  Lets sit down review and confirm and sign.  I get these offers you can barely read, and then you get text instead of calling you to respond a question.  I appreciate when we all work together for the good of our clients and our business.  Thank you for allowing us to express our views.

Rick DeVoss on 02/19/2015

Several thoughts come to mind as I read this blog…
It is dated Feb. 13th at the top, and obviously, Greg got it on Feb. 13th.  Then why am I just getting it in my email today??  (the 19th)  This is not just a question of ‘one day’, this is 6 days!
Whoever is training New Agents, Please tell them to sit down with the buyer and explain things to them in person.  ...At least once!  Go over the forms, and solicit their questions on each paragraph of the contract.  All this new technology is nice, but don’t send me a text message saying you are terminating your offer!  If you submitted it on paper, then you should retract it on paper!    (~with the client’s signature on it!)

I’m sure there is a good reason behind the answer given above, but I was wondering if it is possible for a buyer to check the box quoted and still include the financing addendum.    ~What if the buyer wanted to apply for a loan, but still guarantee the seller that his offer to purchase the house was Not contingent upon obtaining financing?  ...For example:  Let’s assume that he has the cash available, but wants to take out a mortgage to get this house.  Couldn’t he still attach the addendum to show that he was applying to a lender?

And I’ve always wondered why the info contained in the financing addendum was not written into the basic contract.  (?)  The majority of our offers are financed anyway, and if the buyer is paying cash, then we could just check a box marked for a “cash offer”...
We should avoid using addenda whenever possible, as it just leads to the kinds of errors mentioned above, and it requires another signature. 
Any thoughts on that idea?

 

Brigitte Mueller on 02/19/2015

This is what I always say communication and professionalism goes a long way. We all make mistakes and down the road it is nice to have someone on the other side pointing out mistakes as long as we work in the best interest of our clients.

Stan on 02/19/2015

I made the exact mistake on the first offer that I wrote as an agent. The listing agent called and gently pointed out that I neglected to check the box and that it could cause a lot of problems for my client later on. He suggested that I correct the error before he presented.  Short story, we got the house and I never forgot his professionalism. Now, if I am in a position to help out another agent, I do. As long as it doesn’t affect my service and duties to my client.

Brigitte Mueller on 02/19/2015

I agree with Greg. Nowadays everybody wants to use e-sign, texting etc.  Call me old fashion but I see my job discriptionthis way: sitting down with my clients and “talking” personally.  Explain the documents and aswer their questions immediately. This avoids misunderstanding. I had some clients who never met their loan officer! I am glad that I learned very early in my career the loan process and the necessary documentations so I could explain the process to my clients. Let’s go back to what this job is all about using the technology but keeping the personal contact and life would be much easier and mistakes could be correctat in a snap.

Greg Foster on 02/13/2015

Both this and the previous about earnest money challenges offers good examples of why we as Realtors® must get back to being professional consultants vs. digitally lazy and comunicating via texts, emails, sending docs via e-sign, etc. I’m all for those tools, but only when used properly. We must first and foremost ensure our clients and all parties are communicating effectively. Sit down with clients to craft the appropriate docs, pick up the phone and call the other agents to deal with questionable items, etc.  Too many problems are arising from lack of attention to details. Saves much time and problems when taking time to do it right from the start.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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