During the May 19, 2018, NAR Board of Directors meeting, NAR adopted the NAR professional standards committee recommendation to update Standard of Practice 1-7 by adding:
"Upon the written request of a cooperating broker who submits an offer to the listing broker, the listing broker shall provide a written affirmation to the cooperating broker stating that the offer has been submitted to the seller/landlord, or a written notification that the seller/landlord has waived the obligation to have the offer presented."
Note: South Carolina License law REQUIRES written affirmation via SCR314 regardless of buyer rep making a written request for a written affirmation.)
Note: NAR defines broker to include associated licensees.
Note: While agency law may allow a seller principal to direct the broker agent to not submit an offer (e.g. insane potential buyer is submitting one penny offers every day, prisoner/someone with a personal vendetta/history against the seller submits offers with offensive/trigger language), the safest risk management procedure is to always submit all offers and let the seller delete or dispose the offers. This safest risk management procedure is due to SC license law wording.
Note: Use SCR314 when the seller does not accept buyer’s offer nor counter offer nor respond (e.g. allows the buyer’s offer to expire).
https://www.screaltors.org/wp-content/uploads/Forms/314.pdf
Note: Use SCR314 in multiple rounds with multiple offers.
Note: Use SCR314 even if using SCR312 multiple offer "highest and best" form
Note: LLR does not allow a pre-printed seller signature line, but allows sellers to sign the SCR314 in the space available. This may be prudent risk management to prevent the seller from forgetting/fibbing about rejecting the buyer’s offer and the seller signature will comfort the buyer and buyer rep that the seller saw the buyer’s offer before rejecting the buyer’s offer (or allowing the buyer’s offer to expire).
License law excerpts:
(26) fails to promptly submit all offers and counteroffers in a real estate sales transaction;
(5) If an offer is rejected without counter, an offer rejection form, promulgated by the commission, signed by the licensee affirming presentation of the offer must be provided to the offeror by the licensee, whether the agent of the buyer, the seller, or if acting as a transaction broker.
NAR Code of Ethics excerpts:
Duties to Clients and Customers
Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. (Amended 1/01)
- Standard of Practice 1-7
When acting as listing brokers, REALTORS® shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. REALTORS® shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. REALTORS® shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease. (Amended 1/93)
- Posted by : Byron King on 5/10/18 (This information is only accurate as of 5/10/18. You must contact SCR for updates and changes to this information after 5/10/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)