What do you mean by acceptance and communicating?
Going back to 2008, there was a different section here. It was called the Confirmation of Execution. That meant the last person to sign, but that particular information had no value.
So, it was changed to COA or Confirmation of Acceptance. That information actually is “valuable” since it is the commencement time for the contract.
Acceptance is a two-step process:
1) Signing (execution),
2) Communicating that fact to the other side.
If you fail to tell the other side that they won the bidding war, they are not bound. Similarly, if you are negotiating with Buyers and they never, ever hear back, then that’s the end of it. They are not bound.
Now, what if the sellers are not both present in the same place when the counter offer is being presented?
Either of them could sign the COA, either Seller 1 or Seller 2. Let’s assume Seller 1 signs, the Agent then takes it over to Seller 2 and Seller 2 then signs. The next step is “communication”.
The Agent then tells the Buyer Agent that the Offer has been accepted by Seller 1 and Seller 2.
The Agent, perhaps, out of convenience finds it easier to meet with Seller 1 again for the COA.
Alternatively, if the Agent was with Seller 2 and phoned the Buyer’s agent at that time, then Seller 2 could sign the COA right then.
Comments (0)Subscribe to CommentsComment