Multiple Offers

Must a listing broker always disclose that there are multiple offers to the buyer?

While this is preferable, the listing broker must disclose only if the seller authorizes the disclosure.

While this is preferable, the listing broker is under no obligation to disclose.

Yes. The listing broker must disclose all offers.

True or false: the listing broker is automatically permitted to stop presenting offers, once the seller has an accepted contract in place?

True. Once there is an accepted contract in place, the listing broker is no longer expected to present additional offers.

False. Offers must be presented up until the time of closing unless the seller waives this requirement for the listing broker.

The listing agent has been directed by the seller client to ask for highest and best offers from multiple buyers. What is the effect of this request on those offers?

Legally, if the seller client asks for the "highest and best" offers only, the agent is expected to use their knowledge and discretion to determine which offers are "highest and best" and then presents those and only those to the seller client, as requested.

The legal effect of asking for “highest and best” from all offerors is a rejection of all offers.

True or false: the Illinois Real Estate License Act and the REALTOR® Code of Ethics govern the behavior of unlicensed sellers and buyers.

True.

False.

True or false: an escalation clause is a foolproof method for buyers to “win” in a multiple offer situation.

True. This is the purpose of escalation clauses.

False. These types of offers are rife with potential problems.

What is a possible legal effect of a seller countering two offers at the same time?

The seller has sold his one property twice.

This is a legally uncomfortable position in which to be.

If the seller suggests countering two offers at the same time, the listing agent should refer the seller client to their legal counsel.

All of the above.

If a seller suggests countering two offers at the same time, what should the listing agent do?

The listing agent should agree only if they are comfortable with the responsibility and added time committment of countering two offers simultaneously.

The listing agent should — and indeed has an ethical obligation to — refer the seller client to their legal counsel.

What practice might a listing agent use to prove to the buyers in a multiple offer situation that the listing agent has presented all offers to the seller client?

The listing agent should encourage the seller to sign some written acknowledgement of the seller’s action, I.e. Rejection of the offer.

The listing agent should encourage the seller to respond via email with their action, I.e. Rejection of the offer.

The seller is under no legal obligation to do this. But it is prudent, and shows that the agents have done their job.

All of the above.

True or false: the seller must always accept the highest offer.

True. The seller can get into legal trouble if they accept a lower offer.

False. The seller is generally free to accept the offer he likes best, absent nefarious reasons such as in order to discriminate based on a buyer’s membership in a protected class.

An offer or counter-offer can be withdrawn any time prior to ____________________.

The deadline (established by the listing agent).

Acceptance.

Never. (Trick question!)

True or false: there is a strict rule that offers must be presented in the exact order in which they were received.

True. It is set in stone that all offers MUST be presented in the exact order in which they were received.

False. While it is best practice, and the agent should present offers in a timely manner, but there is no "first in time" rule.

What are some ways in which a buyer’s broker might try to verify their offer has been presented if they suspect the listing broker is “stonewalling” or not presenting their offer?

Call the listing agent's managing broker to explain the situation and ask them to investigate the facts.

If the seller's agent is following the seller's direction, there may not be anything the buyer's broker can do.

The buyer's broker can go directly to the seller, if they know the identity of the seller.

All of the above.

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