Real Life Real Estate!  You did a great job for your sellers in a bad situation...  When representing a buyer in an "obvious" split - even without a pile of remnants on the lawn - usually there is one side of the walkin closet missing clothes of the opposite sex - I let the buyer know good deals aren't always to be had.  Sometimes the contrary, as BOTH are still on title, and the proceeds of the sale are divided.  Often times the "Divorce Deal" costs them more to close. At the end of the day, we Realtors must remember our Agency Representation and disclosing information about either party that isn't material to the sale can land us in hot water! 

Yes; we are Marriage Counselors and Realtor!

Ahh, the very root of what agency is all about.  Under Virginia agency law, the listing agent has a fiduciary responsibility to protect the clients information and are under no obligation to give personal information out to others that could negatively impact an offer.  Furthermore, unless an agent who is with a buyer has a buyer agency agreement signed with that buyer, they fall under the same fiduciary obligations as the listing agent, through subagency, that the listing agent has to follow.   Any material facts about the house must be disclosed, but personal information does not meet that requirement unless it is concerns  the house being a short sale or foreclosure, and that must be disclosed in the Listing. 

Probably the hardest thing in the world, for us as agents, is to stand silent when asked revealing qestions by the buyers and their agents concerning seller motivations.  You really handled it in a professional manner and your clients should expect nothing less from us as Realtors.  We all work both sides of the fence and we have to remember our roles and whom we are representing in the transaction.  Great post!

You did a great job, Todd. Luckily the clean up worked and you got the correct price. I have always found it difficult to answer the "Why are they selling?" questions from buyers/buyer's agents. When it's a divorce that's particularly difficult. I believe buyers are curious from a superficial standpoint and largely ask wanting to rule out any major defect in the house. They certainly do not want to hear: Oh the flooding in the basement every Spring is getting tiring for the owners.

I wonder if, Like Jirius #52, it can be best to let it be known up front if it is going to be obvious that it is a divorce situation. Presenting as 'not a problem' seems to have merit. That would have to be with the agreement and permission of the sellers of course.

My initial advice would be to keep it confidential as you did. Since it not a material condition, and not a required disclosure (unlike a short sale, for example, which must be disclosed even though it obviously has detrimental effect on the potential sale price), the best advice is to keep it confidential. As long as the sellers are keeping it in control, the price is not effected negatively. Once it becomes obvious, probably by the obvious absence of half the household goods or such, then it seems best to admit it, when asked, and assure the buyer's agent that you have control to get to closing smoothly. Without such assurance buyer's may reject the possibility of making even a low offer, especially since there are usually other options in today's market.