of acceptance of a contract. It is becoming of less relevance, given the immediacy afforded by
electronic communications.
Lastly, brokers are reminded that under both the common law of agency, the terms of their
written agency agreements with the consumer, and the terms of the standard form contracts, notice
to a party (seller, buyer, lessor, lessee) may be accomplished by communicating that notice to that
party=s agent.
Submitting Offers to Seller
Under the law of agency, a seller
=
s agent (listing agent or seller
s subagent) has a duty to
communicate (present) all offers on a listed property to the seller (principal) as soon as possible
and to disclose to the seller all information in the agent
=
s possession that might affect the seller
=
s
decision to accept an offer. In addition, Real Estate Commission Rule 21 NCAC 58A.0106
requires all licensees to A...immediately, but in no event later than five days from the date of
execution, deliver to the parties thereto copies of any contract, offer, lease or option affecting real
property.@ It is important to note that this Commission rule applies to all agents involved in a
transaction regardless of whom they represent or from whom they will receive compensation.
These requirements mean very simply that a seller
=
s agent (or subagent) must immediately
present all offers to the seller and must inform the seller of any matter that might affect the seller=s
decision. The agent cannot withhold or delay the delivery of offers or information. Understand
as well that merely telling the client what the main terms of the offer are does not in any way
excuse or delay the five day delivery requirement. A copy of the document must be delivered to
the client, whether personally, by electronic transfer, postal service or other means.
Example: Sally Seller lists her property with Bob Broker with an asking price of $319,500
and authorizes him to list the property with a multiple listing service. Bob finds a prospect
who is fairly interested in the property and who probably will make an offer of $315,900
after checking with his father about helping out with a downpayment. In the meantime,
Zippy Smith, a competing broker who is also a member of the multiple listing service,
contacts Bob Broker and delivers to him an offer to purchase the property from a third
party who is willing to pay $315,500 for the property. Because Bob does not want to split
the commission with Zippy, he places the offer in his desk drawer and does not tell Seller
about it. Bob hopes that his prospect will come through with an offer soon and that he
won=t have to present the offer from Zippy=s prospect. Bob=s action constitutes both a
violation of agency principles and of Real Estate Commission Rule A.0106.
In addition to presenting signed offers, a seller
=
s agent (or subagent) also must promptly
inform the seller of any possible offers that may be forthcoming. Such information may be
extremely important to the seller.
Example: X has interested Smith in purchasing a residence listed with X=s firm although
Smith has not signed an offer to purchase the property yet. Y of another firm phones X
and informs him that he has a prospect who is very interested in purchasing, and that he
will be preparing an offer with the prospect that evening. After this phone call, X hurries
over to Smith=s house, convinces Smith to make a formal offer to purchase the property,
and promptly delivers Smith=s offer to the seller without informing the seller that another