Rhode Island Real Estate Continuing Education - RHODE ISLAND School Permit: REE.0001035
RI 3.0 hours Avoiding Common Mistakes - Course Syllabus
3.0 Core Topic
To help you avoid a pitfall, this course reviews some of the most frequent mistakes a real estate licensee can make. Extreme care must be used when presenting offers, counteroffers, and multiple offers.
In most circumstances, an offer to purchase real estate is written by the licensee who is working with the buyer. This contract to purchase, called a Purchase and Sale Agreement (PSA), MUST be in writing. Verbal offers are not enforceable. The requirement that all offers be in writing is known as the Statute of Frauds.
If a seller accepts the buyer's offer, they are accepting the offer and all of the terms and conditions in its entirety. The seller would then sign the offer. At this point, mutual acceptance has occurred and each party is bound by the terms and conditions of the contract.
If a seller rejects an offer, they are rejecting the offer and its terms and conditions in its entirety. Usually, the listing representative will draw a line diagonally across all pages of the contract and write in bold writing REJECT. At this point, all negotiations are terminated.
If the seller wishes to make any changes to the buyers' offer even just one minor change, the seller will line through the item, make the change, and initial the change. This is known as a counteroffer. Technically, a counteroffer is a revocation of the original offer.
Multiple offers occur when there is more than one party desiring to purchase a property. A real estate licensee representing the seller has the duty to present all offers to the seller, even if mutual acceptance has occurred with a prior buyer and a contract has been signed.