Question: I am a listing agent in the sale of real property. The seller seeks to revoke a counter-offer issued before the expiration has expired. The buyer has not signed the counter-offer. The counter-offer reduced the contingency periods. The buyer is objecting to the revocation claiming that the conditions are not “material.” Does the seller have a right to revoke the counter-offer before the buyer signs it?
Answer: Yes. The counter-offer contains material terms and the parties do not have a meeting of the minds. Therefore, a contract has not been formed and the seller may revoke the counter-offer. However, the counter-offer must be revoked before the buyer signs and returns it. A counter-offer may legally be revoked verbally, but that is not advisable. It is recommended that the seller revoke the counter-offer in writing and the listing agent contact the selling agent by telephone immediately upon submission of the revocation.