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Do you always have the seller document and date a rejection of an offer as well as an acceptance?

Do you always have the seller document and date a rejection of an offer as well as an acceptance?

posted: 02/26/2019

Many obligations in the Code of Ethics are also obligations in License Law.  That is particularly true with the language added to the Code of Ethics in 2019 requiring listing brokers to provide proof to cooperating brokers that an offer was presented. The same obligation with similar language has ALWAYS been in license law.

License Law:  MREC Rule 3.1 (H) Paraphrased:
A listing broker has the obligation to document and date the seller’s personal acceptance or rejection of an offer and upon written request shall provide a copy to the person making the offer. 

New in 2019.  Code of Ethics Article 1, Standard of Practice 1-7 (in part):
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 or written notification that the seller has waived his obligation to have the offer presented. 

A Best Practice is for a listing broker to follow license law to the letter by always instructing the seller to “document and date” a rejection as well as an acceptance which can become the “affirmation” required by the Code of Ethics upon written request.