LEGAL UPDATE How to handle multiple offer and procuring cause legal dilemmas
Anneliese Fierstos Illinois REALTORS® Legal Hotline Attorney
MULTIPLE QUESTIONS ABOUT MULTIPLE OFFERS
Have a legal question?
Illinois REALTORS® Legal Hotline is the Designated REALTOR®/ managing broker’s go-to source for legal information. Hours: 9 a.m. - 4 p.m. Monday – Friday Phone: 800-952-0578 Email: afierstos@ IllinoisRealtors.org. 8
www.IllinoisRealtors.org
Due to a shortage of homes available on the market for both lease and sale, more properties are in high demand. As a result, many REALTORS® are faced with questions of how to navigate the complex world of presenting and negotiating multiple offers on the same property, and how to handle other complex issues that arise in the world of multiple offers. There is no exact template on how to handle multiple offer situations. REALTORS® must focus on their duties to their clients and to other parties to the transaction. The problem with multiple offers is that only one of the offers will result in a sale, and the remaining buyer or buyers will ultimately be disappointed. Therefore, REALTORS® need to keep in mind that the best way to handle these situations is through honest communication with all parties, subject to the client’s lawful direction. The following questions related to multiple offer situations have been arising frequently on the legal hotline:
I am the seller’s agent and I have received several offers on the same property. Should I disclose to a buyer submitting an offer that there is another offer on the same property? Sellers have several options on how to deal with multiple offers, and although the listing broker can offer suggestions and advice, the final decision on how to deal with a multiple offer situation is dictated by the seller. Sellers can accept the “best” offer; they can inform all potential purchasers that other offers are “on the table”; they can “counter” one offer while putting the other offers to the side awaiting a decision on the counteroffer; or they can “counter” one offer and reject the others. There is no legal requirement for a REALTOR® to disclose to all buyers that there is another offer on the table. Ultimately, the decision whether or not to make that disclosure falls upon the seller. The REALTOR® Code of Ethics, Standard of Practice 1-15 requires disclosure only with permission from the seller. The Code further states that “Where disclosure is authorized,
