Legal Question in Real Estate Law in California
Counter offers
We just received a counter offer on a house we submitted an offer on. The real estate agent said they made the counter offer to all the offers they received (four of them), not directly to any one specifically. Is this legal? I thought they had to pick one offer and make a counter specifically to it?
2 Answers from Attorneys
Re: Counter offers
To form a binding contract, you need three things (1) an offer; (2) an acceptance; and (3) consideration (each side must get and give something). One party makes an offer, then the other accepts. The best way to think of a counter offer is as a whole new offer by the other side. Once somebody has made a counter offer to you, you now have to decide whether to accept that counteroffer. What you offered before is not legally relevant. In fact, in most situations a counteroffer is a rejection of the original offer. Although I would have to look at the paperwork to be sure, only the terms of the counteroffer will be part of the contract if you accept.
Re: Counter offers
Yes, it is legal to do that.