When can a broker, acting as the seller's agent, refuse to submit an offer to the seller from a potential buyer?
Answer (1)
In the context of real estate, a broker acting as a seller's agent usually has the duty to present all offers to the seller, regardless of the offer's content. However, there are certain circumstances where a broker can refuse to submit an offer to the seller.
Written Instructions from Seller : If the seller has given the agent specific written instructions not to present certain types of offers, such as those below a certain price threshold, the broker may refuse to submit those offers. Documentation of this instruction should be maintained.
Prohibited by Law : An offer that violates the law, such as one that contains a discriminatory condition which would breach Fair Housing Laws, should not be submitted.
Expiration of Listing : If the offer is received after the listing agreement has expired, and there is no subsequent agreement, the broker may not be obligated to present it.
Agency Relationship Termination : If the agency relationship between the seller and broker has been lawfully terminated, the broker isn’t required to submit further offers after the termination.
Duplicate or Similar Offers : Sometimes, if multiple nearly identical offers are received, especially in competitive bidding situations, the agent may prioritize more unique or valuable offers. However, this should be done in accordance with any guidance or instructions received from the seller.
In any case, transparency with the seller and adherence to legal and ethical guidelines is fundamental. When in doubt, the broker should always consult with legal or real estate professionals to ensure compliance with laws and ethical standards.
