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Is it against the law for an agent to disclose the amount of an offer their client accepts? I'm curious what kinds of laws there are regarding disclosure with agents. I know it might vary state to state, but is anyone aware of a law that basically forbids an agent from disclosing stuff like the amount of an offer that was accepted by a client?
Is it against the law for (listing) agent to disclose the amount of an offer their client accepts?
It's against common sense (and usually the contract terms) to reveal private data...
data that their client considers valuable and wants to be kept private.
In your example... if/when the sale goes through the details will be made public later.
Is it against the law for an agent to disclose the amount of an offer their client accepts? I'm curious what kinds of laws there are regarding disclosure with agents. I know it might vary state to state, but is anyone aware of a law that basically forbids an agent from disclosing stuff like the amount of an offer that was accepted by a client?
By law and ethics, I cannot tell you the amount a client accepted, absolutely not while the property is in play, unless they instruct me to do so.
It is confidential information.
After the transaction, selling price is public information in NC, and can easily be referenced in public filings.
It would be against the Arizona Administrative Code for a licensed agent to breach their fiduciary duties to a client, which includes client confidentiality. As said above, it no longer applies once the sale price of a property becomes public information after the sale closes. I'm not aware of any national law that would apply. The Realtor Code of Ethics includes a confidentiality requirement.
Arizona Administrative Code R4-28-1101. Duties to Client
A. A licensee owes a fiduciary duty to the client and shall protect and promote the client’s interests. The
licensee shall also deal fairly with all other parties to a transaction.
We got a deal on our first house when the agent, selling his first house ever, told us the amount that a house (that we wanted to make an offer on) was currently in contract for. Two weeks later when he called to tell us the first deal fell through, the first thing I told him was "I'm not paying anywhere near what they originally got" and he responded, "well they are already in contract on another house so just make an offer".
We didn't use him to sell our house 13 years later!
A listing agent is obligated to exercise reasonable car to effect a sale to the best advantage of the seller.
COE 1-15 requires Realtors, with sellers approval, to disclose the existence of offers.
In Michele Linds book there are several court cases where a buyer filed a lawsuit against sellers broker because the buyers offer was shopped. in Marmis v. Solot, Co., 117Ariz. 499, 573, P.2d 899 App.1977) the court sided with the broker and said:
Quote:
"Any efforts by the listing broker to obtain a better price were only in performance of its obligation to the seller and the broker cannot be penalized for fulfillment of those duties. Tortuous interference with contract/economic relations does not occur through lawful competition."
It is good to have written permission to shop offers that would include "if in the opinion of the broker he feels it is in the best interest of the client."
It would be against the Arizona Administrative Code for a licensed agent to breach their fiduciary duties to a client, which includes client confidentiality. As said above, it no longer applies once the sale price of a property becomes public information after the sale closes. I'm not aware of any national law that would apply. The Realtor Code of Ethics includes a confidentiality requirement.
Arizona Administrative Code R4-28-1101. Duties to Client
A. A licensee owes a fiduciary duty to the client and shall protect and promote the client’s interests. The
licensee shall also deal fairly with all other parties to a transaction.
Same in Oregon. Agents can't disclose that information unless the seller has agreed for it to be released. It is considered confidential and it would violate fiduciary duties to the client if disclosed without their consent. No national law on this as real estate law is handled state by state.
...It is good to have written permission to shop offers that would include "if in the opinion of the broker he feels it is in the best interest of the client."
Good point. It can make sense to disclose offers in pursuit of a better offer, assuming the seller gives permission. Not sure exactly what the OP had in mind. I assumed the question was in relation to disclosing an accepted offer without permission to someone not party to the contract, prior to closing. At that point, shopping the offer is not really an option.
Good point. It can make sense to disclose offers in pursuit of a better offer, assuming the seller gives permission. Not sure exactly what the OP had in mind. I assumed the question was in relation to disclosing an accepted offer without permission to someone not party to the contract, prior to closing. At that point, shopping the offer is not really an option.
The agent just has to be careful that it doesn't backfire. If the agent has a good feel for the buyers and buyers agent, the shopping the offer can work. If not it can backfire.
Also, if we've got that type of bidding going on, we need to make written notes and confirm via email. A buyer who thought the listing agent would get back to him for a higher offer if the other buyer goes higher, could, and has, file a law suit if the agent doesn't get back to them. So everything must be documented in emails, and especially the instructions from the seller when the seller says "that's enough, I'll accept this offer."
What I meant was, say if I see a property that I really like, so I make an offer. It turns out there are multiple offers on the property. The seller accepts another offer, but I still want the property. What if I want to offer more than the one they accepted? How would I do that if I don't know what the highest offer is? The agent can't then disclose it?
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