My client received a written offer on his home. He wants to counter the prospective buyer’s offer and asked me to call the buyer’s agent with the information. The buyer’s broker insists that the seller must either make a formal counteroffer in writing or reject the buyer’s offer in writing. Does my client have to respond in writing?

NO. A seller has no legal duty to respond to an offer in any particular way. A verbal counteroffer could expedite negotiations for the sale of a property in many cases. Of course, once there is an agreement about the terms and conditions of the sale, the parties should promptly reduce the agreement to writing and sign the contract to make it a binding obligation.

As another option, a seller could respond to a buyer’s written offer by using the Seller’s Invitation to Buyer to Submit New Offer (TXR 1926). Because this form is not a counteroffer, the seller is not bound to any of the terms it proposes. The buyer cannot simply sign the form to accept those terms; instead, any new or revised terms must ultimately be incorporated into a written contract and signed by both parties for it to become binding. By using this form, the seller is free to continue considering other offers without being bound by, or worried about the withdrawal of, a previously issued written counteroffer.