Expert: Karyn Foley - 6/17/2009

Question
Is it legal to put in offers for 2 diff clients on same property.  Agent is not listing agent.  Thx.  Jillian

Answer
Dear Jillian:  OK, but with disclosures.  Many states have a mandatory disclosure form that states that agent may make offers for more than one buyer on the same property.  All parties sign that.  What is imperative is that it is fully disclosed UP FRONT, and that all buyers, agents, sellers sign that for prior to presentation of offer.  Even if your state does not have that disclosure form provided, it should be thus stated in both offers.  Many attorneys consider that a difficult situation, conflict of interest, problematic, and fraught with issues.  That may be true, but as long as everyone is FULY AWARE AT THE BEGINNING that the agent has two different buyers for the same property, it should be OK.  As I am not an attorney, my answer is more practical that actual legal.  You might call the listing agent's office manager of the buyer's agent;s office manager to check and see if there are such disclosures that are mandatory, and what language should be followed up with in any counter offers.  Although some buyers would find this an uncomfortable situation, keep in mind, that the buyers make the decision as to what price they want to pay.  As an agent myself, I know that if I were in that position, I would ask another colleague in my office to represent one of the two buyers during the negotiation period, to avoid any misunderstandings or potential conflict of interest charges.  Then, I would pay that agent a sum of money, possibly a referral fee, to compensate them for their part.  That second agent should be paid, but if that agent's buyer is the winner, you would still be able to handle the transaction period from that day forward until the close.  This way, you avoid a bad situation, and have acted appropriately.  Good luck, Karyn Foley