FACTS: A listing agent received two offers on his listing. A buyer’s agent called and asked if the listing agent had any offers, and if so, what were the offers?

ISSUE: Does an agent have to disclose an offer and, if so, does the agent have to disclose the terms?

ANSWER: See discussion.

DISCUSSION:         

Commissioner’s Rule R4-28-1101(A). Duties to Client: 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.

Commissioner’s Rule R4-28-802(B) states: Upon receiving permission from the seller or lessor, the salesperson or broker acting on behalf of the seller or lessor may disclose to all offerors or their agents the existence and terms of all additional offers on the listed property. (emphasis added.)

Thus, the listing agent can disclose the terms of the two offers if the seller provides him with permission to disclose the terms.

Note: The best business practice would be to get the seller’s permission in writing.