FAQ – “I have a new listing coming up and it will most likely receive multiple offers. Do I have to disclose to the competing agents if one of the offers is mine (i.e. No Agency or Dual Agency) in a multiple offer situation?”
In this video Steve Jamieson, Managing Broker of RE/MAX Crest Realty Westside, explains the requirements of disclosure in a multiple offer situation.
Here’s a brief summary:
My seller. My buyer. Multiple offers and disclosure.
There is no requirement to disclose that one of the offers was written by you, unless you are reducing your commission.
If you are reducing your commission, you are required to disclose this to the other agents submitting offers. You must also disclose the amount of the discount.
All agents who submitted an offer must be notified of the discount PRIOR to your offer being accepted, regardless of the timing of negotiating the discount. You must give the competing agents and their clients time to deal with this information before your own offer becomes binding.
Refer to RULES of COOPERATION of the CADREB, FVREB and REBGV.
7.03 Disclosure of Reduced Commission
Where the Listing Brokerage is presenting its own offer in competition with one or more Cooperating Brokerages, and the Listing Brokerage is reducing the commission from that stated in the MLS® Listing Contract, the Listing Brokerage shall disclose any such reduction to all Cooperating Brokerages with competing offers, in order that such competing agents shall not be at a disadvantage and the seller shall receive the full benefit of competition from such Cooperating Brokerages.
Please note: The Frequently Asked Question video series is used for training purposes within our group of RE/MAX offices. If you are licensed at a different brokerage, you must refer to your own Managing Broker for advice.