Beginning January 1st, 2019, Article 1, Standard of Practice 1-7 of the Code of Ethics will change the way REALTORS® communicate about offers. Below is a snapshot of what the change is and how it will affect your business processes in the future.
Article 1, Standard of Practice 1-7 of the Code of Ethics has been modified to include the underlined language:
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. 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. 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.
Why the Change?
These revisions require written confirmation from listing brokers to cooperating brokers that an offer has been submitted to the seller/landlord, or that the seller/landlord has waived the obligation to have the offer presented. This requirement benefits listing brokers by confirming their ethical duty to present offers consistent with Standard of Practice 1-7, and benefits cooperating brokers by affording them written confirmation of offer presentation to provide to their buyers. In a real estate market where inventory is extremely low, this requirement establishes a valuable assurance of offer presentation for consumers.
Who Does the Change Affect?
The change affects listing brokers, who are now obligated, upon written request by the cooperating broker, to provide written affirmation to the cooperating broker that the offer has been submitted to the seller or landlord, or a written notification that the seller or landlord has waived the obligation to have the offer presented. It also affects the cooperating broker, who can now assure their clients that their offer has been presented. If the listing broker fails to provide written affirmation or notification, the cooperating broker or their client may file an Ethics Complaint against the listing broker.
If you have questions about the new required procedure, please don’t hesitate to contact MORe’s Professional and Ethical Practices Department at 630.324.8400.