What must a broker do when they receive an offer that is not accepted?

When a broker receives an offer that is not accepted, returning the offer to the prospective buyer is the appropriate action. This approach maintains transparency and professionalism in the transaction process. By returning the offer, the broker communicates to the buyer that their offer was considered but ultimately not accepted, allowing the buyer the opportunity to understand their position and decide whether to submit a new offer or negotiate terms if they choose.

Returning the offer also ensures that the buyer does not feel left in limbo about their proposal. This act upholds the broker’s duty to keep all parties informed and engaged in the negotiation process, which is essential for maintaining trust and strong relationships in real estate transactions. It allows for open communication between the buyer and broker.

The other options would not align with standard practices in real estate transactions. For instance, permanently rejecting the offer does not provide the buyer with the option to revise or improve their offer. Negotiating further with the buyer might not be viable if there is no interest from the seller in the terms presented, and filing the offer for future reference could be seen as neglecting the buyer's wishes and failing to communicate effectively.