Here’s a list of common questions real estate agents ask their broker about counter offers, along with clear explanations:

  1. Can a seller issue multiple counter offers to different buyers?

Explanation: Yes, using the Seller Multiple Counter Offer (Form SMCO). The seller can respond to multiple buyers but each counter must be accepted and signed again by the seller to be binding.

  1. What happens if both buyer and seller sign the counter offer? Is it a binding contract?

Explanation: Yes. A counter offer becomes a binding agreement once both parties sign it and deliver a copy to the other side. Delivery is key to enforceability.

  1. Can we counter only part of the buyer’s offer and accept the rest?

Explanation: Yes. The Counter Offer (Form SCO) allows the seller to modify specific terms (like price, closing date, repairs) while accepting the remaining terms of the buyer’s offer.

  1. What is the difference between a Counter Offer and a Seller Multiple Counter Offer?

Explanation:

  • Counter Offer (SCO): Used when negotiating with one buyer.
  • Seller Multiple Counter Offer (SMCO): Used when negotiating with two or more buyers simultaneously to retain flexibility.
  1. Can a buyer counter the seller’s counter offer?

Explanation: Yes. The buyer can issue a Buyer Counter Offer (Form BCO) in response to the seller’s counter. This continues the negotiation until both sides reach agreement.

  1. Is a verbal counter offer enforceable?

Explanation: No. All counter offers must be in writing and signed to be enforceable under California real estate law.

  1. Can the seller withdraw a counter offer before the buyer accepts it?

Explanation: Yes, any counter offer can be revoked before it is accepted and delivered back. The revocation must also be in writing.

  1. How do we handle counters with conflicting terms (e.g., buyer and seller each change the close date)?

Explanation: If both parties counter with conflicting terms, there is no agreement until one side accepts the other’s most recent terms without modification.

  1. How should we handle a counter offer if escrow has already been opened?

Explanation: If terms are changing after escrow opens, they must be handled via an addendum, not a counter offer. Counters are used before acceptance.

  1. What if the seller makes a counter, and the buyer accepts but adds a condition?

Explanation: That is a new counter offer, not an acceptance. For a valid acceptance, the buyer must agree to all terms without adding new ones.

  1. Can we use an email or text message to negotiate counter offers?

Explanation: Discussions can happen via email/text, but the final counter offer must be completed on the official CAR form and signed to be enforceable.

  1. Can I advise my client to accept the backup offer instead of responding to a countered primary offer?

Explanation: Yes, but make sure the seller has not accepted the countered offer yet. Once accepted, the seller is contractually bound and cannot pivot to a backup.