Offer amount disclosed at Open House?

State: Massachusetts

Yesterday, my wife and I made a full price offer for a home with a non-listing realtor. There was an Open House (run by the listing realty company) scheduled for today, so we made the offer good until the start of the open house.

We were informed by the realtor that the sellers were "unreachable," and decided to extend the offer.

My wife stopped by the non-listing real estate office to initial the time extension spots on the contract, and a couple was in speaking with the realtor about the home at the Open House.

They liked the house, but didn't want to spend the full asking price. However, they had been told by the realtor at the open house that there was already a full price offer on the table.

I was always under the impression that realtors were not allowed to discuss the price of offers with other potential buyers.

If I am correct, what legal remedies do I have at my disposal?

[HomeGuru]

You are not correct.

HOMEGURU is not correct - you need to consult with a real estate attorney in your State or your local real estate association. Many states maintain real estate associations that real estate companies MUST be members of and rules that they must follow. Many states have enacted very specific rules regarding mulitple offers and what information a real estate agent can disclose. In becoming licensed realtors need to pass a test which in effect confirms that they will follow the laws of your state/city.

If homeguru was correct (which he's not) a real estate agent could pump the price of a property by 'telling' a prospect that there was a full price offer on the table. This could lead to a situation where a property sold for more than list price.

MOST STATES would allow a realtor to say that they have another 'offer' but NOT DISCLOSE the details of the offer.

[JETX]

'Elvis':
Since you seem pretty confident in your statement, "MOST STATES would allow a realtor to say that they have another 'offer' but NOT DISCLOSE the details of the offer" and that HG was incorrect in his reply.

Please provide statutory (or Realtor Rules) to support your position that a Realtor or agent is barred from disclosing that they have a 'full price' offer on the table. Since you seem to believe this applies to MOST states, just a few should be sufficient.

Failing your proof, I have far more confidence in HG's knowlege of real estate law.

Halket -

Let me get this right - you do not agree that this question is one that should be posed to an attorney? What are you thinking?

The reason I stated that most states would not allow a realtor to disclose the PRICE OF A PENDING CONTRACT based on Michigan, Florida and ILLINOIS - In Illinois there is the Illinois Association of Realtors; [url]http://www.illinoisrealtor.org/[/url] which has been actively pursuing a procedure for how a realtor should handle multiple offers and how to protect buyers from predatory realtors.

I have no idea why you would disagree with a recommendation to contact an attorney - OR how you could really believe that a realtor could disclose the price of a pending sale.

The big issue in Illinois is based on how to record/monitor offers in such a way to PROTECT buyers from being duped by a realtor while at the same time preventing 'new buyers' from negotiating a price based on what someone else is/was willing to pay.

By the way, what is the law in your state???or are you from the same catatonic state as home guru?

[HomeGuru]

[quote]Originally posted by Elvis
[b]HOMEGURU is not correct - you need to consult with a real estate attorney in your State or your local real estate association.

**A: my response to the writer was based on Massachusetts licensing law of which Elvis did not make reference to. Instead, a general many states response was made by Elvis.

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Many states maintain real estate associations that real estate companies MUST be members of and rules that they must follow.

**A: Nowhere in the real estate licensing laws of Massachusetts is there a requirement that forces a real estate agent to belong to a real estate association. In fact, there is no such law in ALL 50 States. Membership in a real estate association (National, State and local) is strictly voluntary. In addition, the National Association of Realtors and it's affiliate State and local Board Associations are not run by any State. It is a private entity not affiliated with State government. Licensed real estate agents and brokers are governed by respective State laws. Therefore the State has regulatory jurisdiction over the licensed indivdual. No real estate association would have regulatory jurisdiction over the real estate agent.
If the real estate individual chooses to join a real estate association such as the National Association of Realtors, only then does the association have a right to enforce the Standards of Practice and Code of Ethics on the member real estate agent or broker, Realtor-Associate and Realtor respectively. [url]www.nar.realtor.com[/url]
It is quite obvious that Elvis is making up stuff.
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Many states have enacted very specific rules regarding mulitple offers and what information a real estate agent can disclose. **A: where is this law as it applies in the subject state of Massachusetts where our writer is from?
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In becoming licensed realtors need to pass a test which in effect confirms that they will follow the laws of your state/city.

**A: this is the biggest load of crap. First of all, when an indivdual is a licensed real estate agent or broker, said indivdual is not automatically a Realtor. Secondly, the State test is a licensing test only and in no way, shape or form confirms that the licensed indivdual will follow the respective real estate licensing laws.
If passing a test confirms that licensing laws will be followed, I would encourage more State testing.
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If homeguru was correct (which he's not) a real estate agent could pump the price of a property by 'telling' a prospect that there was a full price offer on the table. This could lead to a situation where a property sold for more than list price.

MOST STATES would allow a realtor to say that they have another 'offer' but NOT DISCLOSE the details of the offer.

**A: If only Elvis knew, but it is apparent that Elvis left the building. The light is on but no one's home at the Heartbreak Hotel.

[JETX]

Originally posted by Elvis
Halket -

Let me get this right - you do not agree that this question is one that should be posed to an attorney? What are you thinking?

I have no idea why you would disagree with a recommendation to contact an attorney - OR how you could really believe that a realtor could disclose the price of a pending sale.

Did you even read my post?? I said nothing about questioning whether an attorney should be consulted or not.

What I did say was that YOU were incorrect in your broad statement ("MOST STATES would allow a realtor to say that they have another 'offer' but NOT DISCLOSE the details of the offer") and asked for YOU to provide some legal basis for this claim. You obviously couldn't provide any, so resorted to attempt distorting the question asked.

Homeguru - here's a shocker... you're wrong AGAIN. In order for a real estate to be an 'active' agent they DO NEED TO BELONG to an association. Have you ever heard of the MULTIPLE LISTING SERVICE. In order to be 'able' to able to use the MLS you need to be an ACTIVE AGENT or BROKER which means you follow the local real estate laws where you are licensed.

I have no idea what/who you think you're kidding, but you really do not have a clue as to what you're saying. "Most' of your posts are dead wrong.

HALKET - You're right I obviously didn't understand your post. Your keen intellect and use of the english language was far too complex for my simple brain. You dis-agreed with my posts and I asked you HOW YOU COULD DISAGREE with a post which recommended consulting with an attorney. Hope you don't have too many sheep on your farm.

[JETX]

Let me offer the following....

I think that this topic has degenerated mainly as a result of confusion...

HG is correct in saying that there isn't any law prohibiting an agent from saying that he has a full price offer (that was the ORIGINAL issue of this entire thread).

Elvis is correct in that MOST regional real estate agents and brokers are members of the local MLS (Multiple Listing Service) since they have to be members to access the MLS listings. But HG is also correct in that MLS membership is NOT required to be an agent or broker.

MA brokers and agents are governed by the rules of the Board of Realtors. I have reviewed their rules and can't find anything prohibiting the release of the 'full price' notice. The rules are at:
[url]http://www.state.ma.us/reg/boards/re/cmr.htm[/url]

Lets look at the specifics of Massachusetts (also based in the original post). MA General Laws require that a broker and/or agent MUST be licensed.
"CHAPTER 112. REGISTRATION OF CERTAIN PROFESSIONS AND OCCUPATIONS.
Chapter 112: Section 87RR. License; completion of transactions; fee or commission; action for compensation.
Except as otherwise provided, no person shall engage in the business of or act as a broker or salesman directly or indirectly, either temporarily or as an incident to any other transaction, or otherwise, unless he is licensed.

No salesman may conduct or operate his own real estate business nor act except as the representative of a real estate broker who shall be responsible for the salesman and who must approve the negotiation and completion by the salesman of any transaction or agreement which results or is intended to result in the sale,
exchange, purchase, renting or leasing of any real estate or in a loan secured or to be secured by mortgage or other encumbrance upon real estate. No salesman shall be affiliated with more than one broker at the same time nor shall any salesman be entitled to any fee, commission or other valuable consideration or solicit or accept the same from any person except his licensed broker in connection with any such agreement or transaction. A salesman may be affiliated with a broker either as an employee or as an independent contractor but shall be under such supervision of said broker as to ensure compliance with this section and said broker shall be responsible with the salesman for any violation of section eighty-seven AAA committed by said salesman.

Except as otherwise provided no person shall recover in any suit or action in the courts of the commonwealth for compensation for services as a broker performed within the commonwealth unless he was a duly licensed broker at the time such services were performed; provided, however, that nothing contained herein shall be construed as affecting the right of a licensed salesman to recover in a suit or action against a broker on any contract or agreement with said broker."
Source: [url]http://www.state.ma.us/legis/laws/mgl/112-87RR.htm[/url]

Just my opinion......

[HomeGuru]

Thank you Halket. Your post is entirely correct and supports my responses.

[HomeGuru]

[quote]Originally posted by Elvis
[b]Homeguru - here's a shocker... you're wrong AGAIN. In order for a real estate to be an 'active' agent they DO NEED TO BELONG to an association.

**A: There are numerous active and State licensed real estate agents that do not belong to an association. Association membership is not a State requirement in order to hold an active real estate license.
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Have you ever heard of the MULTIPLE LISTING SERVICE. In order to be 'able' to able to use the MLS you need to be an ACTIVE AGENT or BROKER

**A: The MLS is a private service that has nothing to do with holding an active State real estate license. An agent must be a member subscriber of MLS and most member subscribers belong to a real estate association.
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which means you follow the local real estate laws where you are licensed.

**A: State licensing laws are separate from real estate association standards of practice and code of ethics. Once again, a real estate agent could be licensed and active but not be a member of a real estate association or subscribe to MLS.
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I have no idea what/who you think you're kidding, but you really do not have a clue as to what you're saying. "Most' of your posts are dead wrong.

**A: you have no idea what you are talking about period.

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Halket -
Thank you for your throrough response, I very much appreciate your taking the time to research the applicable laws and apologize for any rude comments which I may have posted towards you.

HOMEGURU -
In order to be an realtor who works for a real estate company you need to be an ACTIVE member of the MLS - The MLS only permits licensed real estate brokers/agents from being a member and you must follow the rules/requirements of the MLS.

There may be some exceptions as to an active agent who is not a active with the MLS, however, the agent would not be allowed to logon or post properties. The MLS is one of the most effective tools for brokers to communicate and promote properties, I can't see how/why any realtor would not want to have access.

If you read any/all of my replies to your posts you will note that I only posted them as a response to your inaccuracies. As noted, I think there is some serious harm which could be felt by people if they follow your incorrect responses. If you continue to post things without support then I will continue to repudiate them. Have a great day.

Thank you...I'm all set. Everything worked out.

Evidentally what he did wasn't illegel, but it was 'against the rules.' According to a number of other sources, he was supposed to do that, but there is very little I could do to remedy the situation.

Thanks for the help.

[HomeGuru]

[quote]Originally posted by Elvis
[b]Halket -
Thank you for your throrough response, I very much appreciate your taking the time to research the applicable laws and apologize for any rude comments which I may have posted towards you.

HOMEGURU -
In order to be an realtor who works for a real estate company you need to be an ACTIVE member of the MLS - The MLS only permits licensed real estate brokers/agents from being a member and you must follow the rules/requirements of the MLS.

**A: you are just repeating my initial response. Please reread your posts on this thread again and maybe you will realize that your statements were incorrect. Rather than admit your errors, you sidetrack, change the subject and bring up MLS. MLS was not the issue.
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There may be some exceptions as to an active agent who is not a active with the MLS, however, the agent would not be allowed to logon or post properties. The MLS is one of the most effective tools for brokers to communicate and promote properties, I can't see how/why any realtor would not want to have access.

**A: what does this have to do with your original erroneous statements of association membership?
**********

If you read any/all of my replies to your posts you will note that I only posted them as a response to your inaccuracies. As noted, I think there is some serious harm which could be felt by people if they follow your incorrect responses. If you continue to post things without support then I will continue to repudiate them. Have a great day.

**A: every single response that you have made contradicting my posts have been wrong. Further, you have not supported any of your statements with the correct laws. Halket has already proved you wrong.
If you continue to post untrue, unsupported and false information, I will have you banned from this website. I have barely enough time to devote to helping people that really need help on this website. I will not waste further time correcting your ignorant and unfounded remarks.

Homeguru - you will have me banned from the site because I contradict your lies? I don't think so...