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Buying or Selling a Home/Real Estate Ethics - Buyers

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Expert: - 6/17/2009


Question
Is it legal to represent more than one buyer (agent is not listing agent) and put in offers on the same property?  They could end up competing.
Thank you.
Jillian

Answer
Hello Jillian - The National Association of REALTORS Code of Ethics (available at relator.com) does not reference this issue. Article 1 however does indicate that the REALTOR must always protect and promote the interests of their client. But before we answer lets look at this in two steps. First, can a REALTOR work with more than one buyer at a time? Yes. Does the REALTOR have a fiduciary obligation to the buyer to show them all properties that meet their financial needs and criteria? Yes. Can a REALTOR exclude/withhold properties from a client without the permission of the client? No. The answers to these simple questions supports that a REALTOR may represent more than one buyer and would be obligated to show them the same home they showed another buyer provided the property meet the criteria the REALTOR was instructed by the client to locate. The question is, is there some sort of disclosure required to the buyers that the REALTOR has showed this home to other potential buyers? Each state has individual Agency laws, administrative codes and substantive policies which make it impossible for me to answer definitively. But would it be considered reasonable and prudent regardless of those guidelines to obtain written disclosure to other potential buyers considering the same property? A resonable and prudent business person may think so. In Arizona there is no requirement to do so, however a professional business person would always communicate to their buyer that the possibility exists that other buyers may be viewing this property as the current inventory of homes is shrinking and many properties have multiple offers. A high-fiduciary perspective would suggest that if a REALTOR were to show a property to another buyer that they are representing they would contact each buyer by e-mail and provide a disclosure that this has occurred, or is about to. At this point, if there is interest the buyer should consider how much longer to pursue the decision and consider writing the offer. I hope this has offered an objective perspective. - Todd (Remember I am not an attorney therefore this is not to be considered legal advice, rather it is to be considered professional real estate information that any professional REALTOR should be able to provide.)

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Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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