This, from an icon in Illinois real estate, Lynn Madison. Lynn has been teaching real estate in Illinois, working with the Illinois Association of Realtor and the North Shore Barrington Board of Realtors since Jesus lost his sandals. She's a font of real estate knowledge, and helps CE classes go quickly and keeps them interesting. She posted this on Facebook a few years ago and felt it necessary to repost it today.
- You cannot disclose what you learn about a seller at a listing presentation if you do not get the listing - unless you gave the seller a Notice of No Agency disclosure when you walked in the door. Confidential information stays confidential after the termination of the agency relationship and YOU WERE the agent of the seller for that two hours you were schmoozing them to get the listing - unless you disclosed you were not - that's the Notice of No Agency form BTW.
- Yes - the listing agent can disclose the price of your buyers offer to other agents or buyers - with the sellers permission - unless there was a confidentiality agreement signed by the parties prior to presentation of the offer.
- It is the seller who decides whether to disclose multiple offers - you may not know if your buyer is in one.
- Yes you have to report to the MLS in the requisite time frame that the property is under contract even if you don't have the earnest money yet.
- If you have a variable rate noted in the MLS - the buyer agent has a right to ask (a) if the variable is an issue; (b) how much the variable is (c) who has the other offer - and you MUST disclose. (c) is disclose whether the other offer is from you - someone in your office - or another co-op broker - and while I'm at it - you have to disclose (c) even if there is no variable rate. BUYER AGENTS - ASK DAMMIT - stop whining when you don't know - and LISTING AGENTS - disclose it in the MLS.
There you go. She is 100% right, and I am in agreement with all five points.
I run into friction from fellow Realtors, all the time, about:
- keeping private information private, that you've learned at the listing presentation, or from a listing that you've since lost.
- disclosing the price of other multiple offers to buyer's agents.
- about disclosing whether there are multiple offers at all... and making sure you're following the direction of your sellers. Yes, they'll often listen to your advice, but you have to have that conversation.
- You have a valid contract, even if you haven't yet received the earnest money.
- Upon request any information about your "variable rate" must be disclosed. And whether, or not, the other offer is yours or an agent in your office.