Word of the Day: Irrevocable
Irrevocable: not able to be changed, reversed, or recovered.
In real estate, when we submit an offer, we input an irrevocable date and, very importantly, a time.Ā This date and time is, typically, the next day or could be later in the same day the offer is submitted. Although, it could be for a few days, if the Sellers are hard to reach.
For this period of time, the offer cannot be changed, reversed or recovered Ā by the Buyer. The Seller has up until the stated date and time to respond to the offer.Ā If the Seller decides to counter the offer in any way, their counter-offer will also be subject to an irrevocable time.
For example: Buyer A submits an offer on Monday at 3 p.m. and their representative sets the irrevocable for Tuesday at 6 p.m. The Buyer cannot change or call-back that offer. It is a legal, binding offer up until Tuesday at 6 p.m.Ā Seller B counters back with a price adjustment Tuesday morning and theirĀ representative changes the irrevocable to Wednesday at 6 p.m.