California Real Estate SalespersonPractice of Real Estate and DisclosuresHard
A listing agent receives three written offers on a property in the same week. One buyer's agent asks whether other offers exist. Under California agency practice, the listing agent's proper course of action is to:
- AAutomatically disclose the exact price and terms of every competing offer to all buyers
- BRefuse to discuss offers with any buyer's agent under any circumstances
- CDisclose the existence of other offers if the seller has not instructed otherwise, without revealing confidential terms unless authorized
- DDeny that any other offers exist to avoid a bidding war
Show answer & explanationAnswer & explanation
Correct answer: C. Disclose the existence of other offers if the seller has not instructed otherwise, without revealing confidential terms unless authorized
A listing agent may disclose the existence of multiple offers unless directed otherwise by the seller, but should not reveal confidential terms of a competing offer without that offeror's permission, and must never misrepresent that no other offers exist.
Why the other options are wrong
- A. Disclosing exact competing terms without authorization breaches confidentiality owed to other offerors.
- B. Refusing to discuss the existence of offers entirely is unnecessary and can itself mislead buyers if untrue.
- D. Lying about the existence of offers is a misrepresentation and violates fiduciary and licensing duties.
Multiple Offer Disclosure
A listing agent may disclose that multiple offers exist unless instructed not to by the seller, but must not disclose confidential offer terms without permission and must never lie about the existence of other offers.
- Seller controls whether existence of offers is disclosed
- Confidential terms require offeror's consent to share
- Misrepresentation about offers violates fiduciary duty and license law
Memory trick: Say offers exist, but keep the numbers a secret unless told to tell.