Dear Anne: Bank-owned property and ‘proof’ offer submitted
By Anne Cockayne
June 17, 2019 – Dear Anne: I list bank-owned properties – the main source of my bread and butter. Selling a bank-owned property requires agents to submit offers through the computer, but then comes the waiting game as offers wind their way through banks’ long and arduous approval process before they can be sold.
However, more cooperating brokers and their agents now demand that I provide proof that the bank received their offer. I’m not Houdini – I’m a real estate licensee, for goodness sake. I thought I only had to confirm in writing that I submitted the offer to the bank.
What’s with this “I need proof” stuff? One guy is threatening to file an ethics complaint against me because he wants “proof.” Signed: Get Real, People
Dear Get Real, People: Standard of Practice 1-7 obligates a listing broker to submit all offers and counteroffers until closing or the execution of a lease unless the seller/landlord waives this obligation in writing. The amendment to Standard of Practice 1-7 that went into effect says, and I’m paraphrasing, that upon written request from the cooperating broker, the listing broker shall provide written affirmation to the cooperating broker stating that an offer has been submitted to the seller (or landlord), or a written notification that the seller/landlord waived the listing broker’s obligation to have the offer presented.
This obligation to affirm that the offer has been submitted is no different for a bank-owned property than one listed by a private homeowner. If you’re a listing broker and receive a written request to affirm, you’re required to confirm, in writing, that you submitted the offer whether it be through a computer, email or in person.
The amendment does not obligate the listing broker to provide “proof” of any kind, including an electronic receipt from the bank or a document signed by the seller. If you believe a seller must sign a receipt to prove the offer has been submitted to them in any shape, fashion or form, you’ve got it wrong, folks.
What if you believe the listing agent didn’t really submit your offer and sent a bogus affirmation? Be prepared to prove it – and you may find this difficult since you risk violating the Code of Ethics yourself if you contact the seller directly while the listing is active. You’ll have to wait until the relationship between the seller and the listing broker is over.
Anne Cockayne is Director of Local Association Services for Florida Realtors
Have an ethics or rules question? Email us at legalnews@floridarealtors.org with “Dear Anne” in the subject line.
© 2019 Florida Realtors®
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