In a competitive housing market like our current one, a listing agent can anticipate having to sort through multiple offers on most of their listings. How you handle those offers and how you treat the agents or buyers making those offers is very important, both for the satisfaction of your client and for your adherence to both the law and the NAR Code of Ethics.

Let’s start by discussing the Code of Ethics. As with most things, we’ll begin at the beginning: Article 1. This article requires you as a REALTOR^® to protect and promote the interests of your client above all else. However, it is clear that this obligation does not mean that you are allowed to treat any party dishonestly. This means that while you must work your hardest to ensure that your seller gets the best deal possible, you must do so while remaining truthful with them and with any potential buyers or their agents.

Standards of Practice 1-6 and 1-7 provide more detailed instruction about how you should handle multiple offers. 1-6 states that you must submit all offers and counters “objectively and as quickly as possible.” You can still provide your best guidance as to which offer is the best for your client’s situation, but you should not disparage a buyer or agent when submitting the offer. Additionally, 1-7 requires you to continue to submit offers to the seller or landlord until “closing or the execution of a lease.” You are only relieved of this obligation if the seller or landlord has waived it in writing. If a buyer’s agent submits an offer and requests written confirmation that the offer was presented, you must respond in writing either that the offer has been submitted or that your client has waived that obligation.

If your seller has accepted an offer and another offer comes in that they prefer, you should advise them to consult with an attorney. Accepting two offers on a property is normally not a smart thing to do, unless the second offer is a backup offer contingent on the termination of the first ratified contract. As always, you should avoid giving your clients any legal advice.

You can disclose the terms of offers to other brokers in an effort to get the best deal with your clients. However, if a potential buyer has submitted an offer with a non-disclosure agreement that you or your client signed, you must abide by the terms of that agreement. Again, if you have questions of what the non-disclosure agreement allows you to do, you should consult an attorney.

If you have any multiple-offer questions, you can always contact us on the Virginia REALTORS^® Legal Hotline.