Does the seller have to sign the Due Diligence Fee acknowledgment?
QUESTION: My broker-in-charge requires that I have every seller-client sign the acknowledgment form on the Offer to Purchase and Contract (Form 2-T) when I deliver a Due Diligence Fee. However, paragraph 21 of Form 2-T says that if any fee is given to an agent, then that counts as delivery to the party.
I do not understand why acceptance of the fee needs to be acknowledged twice. Should the seller sign the acknowledgment form if the listing agent has already signed the same form affirming that the Due Diligence Fee has been paid?
ANSWER: Yes. Paragraph 21 of Form 2-T establishes that a buyer may satisfy the terms of the contract by delivering the Due Diligence Fee to the listing agent. Upon delivery of the Due Diligence Fee to the listing agent, the acknowledgment signed by the agent lets the buyer off the hook, and the seller has no right to complain that the buyer has not fulfilled the terms of the contract.
The acknowledgment by the listing agent, however, does not provide any protection to the listing agent or the listing firm. Rule 58A .0116 states that a broker is responsible for ensuring that a Due Diligence Fee is safely and promptly delivered to their client. Having the seller sign the acknowledgment form, even though the listing agent has already signed it, is important evidence that a broker has complied with the license law. Your broker-in-charge is therefore wise to require that every seller-client sign the acknowledgment form after a Due Diligence Fee has been delivered.
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