Promulgated | Interactive Question 1
Back Up Scenario – “I’ve Got Your Back”
Armando and Juliette work for the same brokerage, they are not close friends. Juliette represents the seller and Armando represents the buyer. The property is under contract. Armando and Juliette properly prepared all documents and received informed consent from the buyer and seller and their broker to act as appointed agents in an intermediary situation. (There is a listing agreement authorizing intermediary, a buyer representation agreement authorizing intermediary, and a notice of intermediary relationships from a trade association; all signed by the respective parties.)
Juliette and the seller have received a backup offer from Violet, an agent with another brokerage. The back-up contract is executed and both option and earnest money have been remitted appropriately. The sales price in Armando’s contract is higher than the back-up offer.
At 4:55 pm on Friday, the last day of the option period for Armando’s buyer, the buyer calls Armando and says “I want out of this contract.” Armando quickly texts Juliette, “The buyer wants out of this deal.” This is the only “deal” Armando and Juliette have ongoing. Juliette receives this text at 4:57 pm and does not know what to do with it. Someone in her office says “That doesn’t count, it is not on the correct form.”
Juliette texts the agent who presented the backup offer, “You may be in the first place, I am not sure.” Violet responds, “What does this mean?” The weekend passes with no further communication from Juliette. Violet attempts to contact Juliette several times. Juliette finally responds, asking if Violet’s buyer is willing to match the higher sales price in the first contract. Violet’s broker calls Juliette’s broker, but no calls are returned.
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