Request By:
Mr. Robert G. Stallings
General Counselor
Kentucky Real Estate Commission
100 E. Liberty Street, Suite 204
Louisville, Kentucky 40202
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: H. N. McTyeire, Assistant Attorney General
This is in reply to your letter in which you point out that HUD has established a policy that they will not accept over three tenders from any one broker. You wish to know how we can reconcile this requirement with 201 KAR 11:045, which provides:
"Each licensee shall, without undue delay, submit all written offers to lease or purchase real estate for which said licensee is agent to his principal or owner-client for the decision of said owner-client for his acceptance or rejection."
This Regulation is designed to prevent a broker, for his own reasons, and without any direction by the owner, from failing to submit a written offer. Where the owner of the property adopts a regulation which forbids a broker from submitting more than three offers of purchase, the foregoing Regulation would not apply.
Inasmuch as the broker is aware, or should be aware, of the HUD directive, he should not accept more than three tenders.
After he has received three, he should accept no more. The first three offered may be accepted and must be submitted. Any offers submitted after that time should not be accepted and the prospective purchaser should be advised of the HUD regulation. The broker is without the authority to exercise any discretion in the matter. He must submit the first three offered and any offers received by him thereafter must be refused.