COMPETING OFFERS - You Might Be Surprised.

Winston Salem | Who gives permission to share or not share an offer to other interested parties?   

My broker stated that the listing agent disclosed my offer to other parties, so they offered more than me for the property. I think the seller didn’t accept my offer because of their listing agent

Commission Rule 58A .0115 prohibits brokers from sharing the price or other material terms with competing parties without the express authority of the offering party (usually the buyer). Express authority is an agent’s power to act on behalf of their principal. In other words, the client gives the broker permission to perform some act. However, brokers should know that License Law and Commission rules strictly prohibits the “shopping” of offers without everyone’s permission to do so. A listing agent should not reveal to anyone other than the seller-client that a ‘full-price’ or ‘cash’ offer has been submitted, because sharing such information with a competing buyer would be a violation of Rule A .0115

For clarification, a seller has the right to consider and respond to one offer or all offers. However, if the seller finds the offers received unacceptable, the seller may request the listing agent to ask prospective buyers to submit their highest and best offers. The seller makes this decision, not the listing agent. If the seller calls for highest and best offers, the listing agent should advise buyers to submit a new offer or stand by their original offer. However, under no circumstances should the listing agent share the offer amount of any offeror without their express authority. Additionally, the listing agent cannot redact the offering price within an offer and share this information without express authority to competing buyers, because “other material terms” are still being shared. In October of 2017, the Commission published the article, “Be Prompt, Fair, and Honest When Dealing with Multiple Offers.” This article focuses on ensuring that brokers present all offers immediately to the seller; however, the seller determines which offers to consider.

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