Two Simple Ways to Avoid Multiple Offer Ethics & ADRE Complaints

 Low housing inventory and high buyer demand make multiple offer situations common and offers from investors with cash are often accepted by sellers over traditional buyers planning on buying with financing.  As a result, an increasing number of disappointed buyers believe that they have been treated unfairly and file an ethics or ADRE complaint.  

 

While little can be done to alleviate an unsuccessful buyer’s disappointment, there are two simple ways to make it more likely that an unsuccessful buyer will feel they were treated fairly and less likely that an ethics or ADRE complaint is filed.

 

#1 - Submit All Offers to the Seller

The Commissioner’s Rules require a broker to promptly submit to the client all offers during the term of the listing. The duty to submit all offers prior to closing does not end with the client’s acceptance of an offer unless the client instructs the salesperson or broker in writing to cease submitting offers or unless otherwise provided in the listing agreement, lease, or purchase contract. A broker may voluntarily submit offers to the seller or lessor regardless of any limitations contained in the listing agreement and may submit offers after the listing agreement is terminated.  

 

#2 – Acknowledge Offers Rejected by Seller in Writing

If the offer is rejected, the seller should initial and date line 473 of the Arizona REALTORS® resale purchase contract and return it to the buyer.  The seller’s initials evidence that both the listing broker and the buyer’s broker complied with the Commissioner’s Rule that requires a broker to promptly submit all offers.  If the seller refuses to initial and date line 473. The listing broker should send an email or other writing to the buyer’s broker stating that the offer was submitted and rejected.   

 

Many complaints involve allegations that an offer was not submitted to the seller or not submitted to the seller in a timely manner. These two simple steps can reduce the number of these types of complaints.  

 

 

Michelle Lind is Of Counsel to the Arizona REALTORS® and the author of Arizona Real Estate: A Professional’s Guide to Law and Practice.  This article is of a general nature and may not be updated or revised for accuracy as statutory or case law changes following the date of first publication. Further, this article reflects only the opinion of the author, is not intended as definitive legal advice and you should not act upon it without seeking independent legal counsel.