Wednesday, December 24, 2008

Does a Buyer Have To Initial the Pages On a Sales Contract If There Is a Counter-Proposal?

Q: Why do some underwriters ask for the seller's initials on a sales contract when there is a counter-proposal?

A: Although a seller does not sign the original offer if there is a counter-proposal, the offer is still the bulk of the contract. By initialing the pages, the seller is indicating that they have agreed to everything in the contract except the terms that are changed by the counter-proposal. Underwriters ask for the initials for the protection of the seller.

Not all underwriters will ask that the pages be initialed, but if they do ask, then the pages need to be initialed.

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