The buyer submitted an offer on the AAR contract for $185,000. The listing broker emailed the buyer’s broker back and said that the seller wanted a $190,000 purchase price. The buyer’s broker emailed the listing broker back and said that the buyer would pay the $190,000 purchase price. The buyer no longer wants the home. Is there a contract?
No. Unless a real estate broker has a power of attorney from the seller or the buyer, the real estate broker has no authority to enter into or amend a real estate purchase contract. Although real estate brokers cannot enter into or amend a real estate purchase contract without a power of attorney, real estate brokers do have authority to act on behalf of their client. For example, the $185,000 offer on the AAR contract was rejected by the seller when the listing broker, on behalf of the seller, emailed the buyer’s broker with the counteroffer of a $190,000 purchase price. Similarly, a real estate broker has the authority to withdraw an offer or counteroffer made by his client.
Arizona REALTOR® January 2010