Does offer letter require buyer's signature?

[Kati Stratos]

Hi everyone! I've searched online for the answer to this question and can't seem to find it. I have purchased multiple properties in PA using an agent, and in my experience the agent always has me review and sign the offer letter before he submits it. I just put an offer in on a property in NJ for the first time, and in this case, the new agent I am working with in this area went ahead and submitted it without my review or signature of the written offer (which was fine, I think, it just felt a bit odd that I hadn't reviewed it in writing like I am accustomed to from previous PA purchases).

I'm wondering if this is part of a difference in rules between PA and NJ? Or just a difference in preferences/styles between different agents? 

Thank you for reading.

Kati

[Charlie MacPherson]

@Kati Stratos No, that is NOT OK.  

First, an offer is a contract.  Contracts require signatures and in some cases may require a wet (ink) signature (closing docs in Mass and Maine for example).  For others, an e-signature is permissible. In no case is an unsigned contract allowed to be presented in real estate.

A contract without the signatures of the parties to it is not a contract at all.  It's a draft and not enforceable.

Second, if it was submitted without your review, you don't have any idea what was actually submitted.  What if I were your agent and included a clause that said "buyer to pay buyer's agent an additional $10,000 because he's such a nice guy"?  Or worse, added language that restricts you from using the property as you intend.  Maybe I'm a neighbor and tired of the smell and added -"this former pig farm shall no longer be used as any kind of farm" - when using it as a pig farm is the only reason you're buying it.

That is a major screw-up.  It is grossly irresponsible and a serious ethical violation.

I'd tell him that:

1. He is to immediately notify the other party that you are withdrawing that offer and will resubmit based on your review.  (No, it's not valid as presented, but you don't want a document like that hanging out there).

2. If he pulls a stunt like that again, you will file a complaint with the real estate commission.

3. Maybe there's something you're missing (though it doesn't sound like it), so I would ask for an explanation.  If you don't get one that's satisfactory, I'd fire him and get a new agent.

Good luck!