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LEGAL CORNER with ANDREW PINEIRO, Esq.
Question: Based on an MLS Listing, I made a full price, written cash offer with no contingencies - does the seller have to accept my offer?
Answer: No. A seller is not required to accept any offer. A prospective buyer cannot force a seller to execute a contract, even if the offer contains all of the “terms” in a listing agreement or an MLS listing.
It is understandable that many sellers believe they must accept a perfect offer that reflects exactly what the MLS advertises. After all, aren't the buyers giving the sellers exactly what their listing asked for? There is no Florida law that requires a seller to accept a perfect offer. Sellers are free to accept, reject, or make counteroffers to a contingency-free, full-price offer, and aren't bound to any terms until they sign a written contract.
In a similar vein, there is no law in Florida that requires a buyer or seller to communicate in writing his or her decision to reject the other’s offer. And, there is no Florida law that requires a seller to negotiate with each buyer in the order in which the offers were received.
A seller’s decision to accept (or reject) an offer is not always based on the dollar amount alone. There are many material terms in an offer that can motivate a seller to act, such as a “better” closing date, a larger deposit, a post-occupancy term, waiver of inspections, the inclusion of certain personal property, etc.
From past articles you will recall that an acceptance that does not “mirror” the original offer is in fact not an acceptance. Instead, if one single term is changed, it acts as a “rejection” of the original offer and serves as a new offer, also described as a “counteroffer.”
The MLS (Multiple Listing Service) describes itself as a tool to help listing brokers find cooperative brokers working with buyers to help sell their clients’ homes. Without the collaborative incentive of the existing MLS, brokers would create their own separate systems of cooperation, fragmenting rather than consolidating property information. See https://www.nar.realtor/nar-doj-settlement/multiple-listing-service-mls-what-is-it
When markets are frothy, sellers sometimes sit on offers waiting for a higher and better offer to come along. Buyers can prevent sellers from “shopping” the offer by limiting the time for acceptance of the offer. But, ultimately, the seller can do nothing and let the offer “lapse” if the seller feels that a better offer will come.
Navigating the world of offers, rejections, acceptances, and counteroffers can sometimes be tricky. If you are a buyer or seller and come across a contract interpretation issue, be sure to consult a real estate attorney to determine your rights and obligations under the contract.
Andrew Pineiro, Esq., Pineiro Byrd PLLC,
4600 Military Trail, Suite 212, Jupiter, Florida 33458, apineiro@pblawfla.com
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