Question 94

The binding process for the Seller Multiple Counter Offer (SMCO) requires specific signature steps.

For the SMCO to bind the parties, the seller must sign the form first, followed by the buyer's signature, after which the seller signs again. Finally, the buyer must receive a copy of the fully signed document to ensure all parties are in agreement.

A) The buyer signs the SMCO, then the seller signs, and then the buyer receives a copy of the form with all the signatures

This option is incorrect because it places the buyer's signature before the seller's. The binding process requires the seller to sign first, which is a critical step in the sequence for the SMCO to be valid.

B) The seller signs the SMCO, then the buyer signs, then the seller signs again, and then the buyer receives a copy of the form with all the signatures

This option correctly outlines the binding process for the SMCO. The seller's initial signature followed by the buyer's signature, and then the seller signing again ensures that both parties have agreed to the terms, culminating in the buyer receiving a fully executed copy.

C) The seller signs the SMCO, then the buyer signs, and then the seller signs again

While this option correctly describes the sequence of signatures, it fails to include the crucial step of the buyer receiving a copy of the signed document. Without this final step, the parties may not be fully bound.

D) The buyer and seller both sign the SMCO

This option is too vague and does not specify the required order of signatures. Simply stating that both parties sign does not meet the formal requirements necessary for the SMCO to be binding.

Conclusion

The correct answer, B, clearly establishes the necessary order of signatures and the requirement for the buyer to receive a copy of the signed SMCO. Options A, C, and D fail to meet all the necessary steps for binding the parties, making B the only valid choice that adheres to the protocols outlined by the California Association of REALTORS®.