Legal Lines: June 2020

Question: A buyer submitted an offer, and my seller sent back a counteroffer that included a financing exhibit as well as some disclosure exhibits. Do those exhibits have to be signed by the seller when sending back the counteroffer?
Answer: No. A binding agreement is created so long as the counteroffer form is signed by both parties. If the GAR Form F249 Counteroffer to or Modification of the Unaccepted Original Offer, it states that the original offer is incorporated by reference into the F249, and as such, only the F249 needs to be signed by both parties. Lenders often want a contract, including exhibits, to be signed by both parties. The F249 states that either party can required a clean copy of the contract with all exhibits at that point to be signed.

In our Legal Lines column, we feature a question from GAR’s Legal Helpline each month. Answers to these questions are provided by GAR General Counsel, Seth Weissman. Questions and answers are edited for brevity and clarity. Click here to learn more about our Legal Helpline or to submit a question.