Question Two
The Confirmation of Acceptance is set out in the Agreement of Purchase and Sale. Who signs it?
Let’s look at the following scenario. Two Buyers execute an Offer and it is submitted to the Sellers, who sign the document as well. We know that the COA is to be signed as soon as possible, but who gets to sign it?
Consider the following:
- One Seller
- Both Sellers
- One Buyer
- Both Buyers
- All parties to the deal
- The Offeror
- The Offeree
- Last person to sign
- Listing agent
- Buyer’s agent
- Person who knows of the acceptance
- Administrative person at either Brokerage
- First Brokerage to receive the completed paperwork.
Two questions, out of the above :
- Who may sign?
- Who should sign?
Answer:
The persons mentioned above from 1 through 11 can all sign. The person who should sign is the person who has knowledge of the acceptance #11. Those mentioned in #12 and #13 have nothing at all to do with the contract.
Let’s look at the actual wording in the COA, it says “…. I confirm…”. That means one person not two. There’s a line for a signature. That’s again for one person not two. It also says: “(Signature of Seller or Buyer)”. Again, that means one person not two.
It is possible to squeeze in the names of all Buyers and all Sellers, although it would be rather irregular, and quite unnecessary. Normally, the final Offeree is the first to know of acceptance. So, for the COA to be completed as soon as possible, that’s the person who could sign PROVIDED of course that they have knowledge of the actual acceptance.
Since it said “Seller or Buyer”, the preference would be for a party to the contract to complete the COA.
Brian Madigan LL.B., Broker