Many Real Estate Practitioners, REALTORS®, and Buyers have been frustrated over the years that they were never sure if the offers were ever presented to the seller. I personally have experienced this on numerous occasions…
Well the latest legal update is as follows:
Presentation of Offers: Change to Code of Ethics, Standard of Practice 1-7
The C.A.R. (California Association of REALTORS®), Legal Hotline often receives calls from members, especially in busy markets, expressing frustration that they are not sure that their buyers’ offers were ever presented to the seller. For some time, the RPA (Residential Purchase Agreement) has had a section for seller to initial rejection of the offer or for the listing agent to initial that they presented the offer to the seller. However, those were a courtesy to the buyer and selling agent and not required to be completed by any law or ethical standard.
That, however, is about to change. The National Association of REALTORS®, in response to the break down in the spirit of cooperation, has amended N.A.R. Code of Ethics, Standard of Practice 1-7. Effective January 1, 2019, a listing broker or agent is required to respond in writing that an offer was submitted to the seller if the cooperating broker who submitted the offer so requests. The listing broker or agent must respond in the affirmative unless the seller has provided written notification waiving the obligation to have the offer presented.
C.A.R. is looking into ways for members to comply with the new Standard of Practice. Ideas under consideration include one or more of the following: New language being inserted into the RPA; Modifications to the existing Sample Letter titled, “Demand That Offer Be Presented to Seller;” A new form or letter specifically requesting a reply to the request that an offer be presented; Or a new form for the listing broker to respond to a selling broker’s request. At this time, it is too early to tell whether these or other ideas will be adopted. C.A.R. will keep its members informed well in advance of the compliance starting date.
I find this is all good and well for the REALTORS®, who are members and it will tighten the concerns. On the other hand, no one is talking about the Agents who are NOT members or simply stated they are not REALTORS®.
So, what is the answer? There were times I have submitted offers, asked for confirmation, voice mail was full, texted the agent no response… keep in mind they were all cash virtually non-contingent offers. My answer is simple I am not a vindictive person, times like this or situations like that we should be able to report and have the person’s license revoked. I will be confident this problem would be solved real fast. Easy to prove email time date stamped when and where offer was sent. Licensing reviews it and it is cut, and dry person’s license is revoked.
So, what do you think of this idea? This could be a Nationwide Answer. Let me know where I am going wrong and what is a better solution? Maybe an outragiously high FINE?
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