What to do when you have two buyers who want to write on the same property?
When you have two buyers that want to write an offer on the same property, it is termed a "Contemporaneous Offer" situation and is very similar to a dual agency situation.
Although we do not prohibit dual agency at Key Realty, we STRONGLY discourage it. Our recommendation is that you find another agent to represent one of the buyers and write their offer.
This is a high-risk situation where one or both clients may feel unfairly treated, and you have the possibility of losing both clients.
If you do proceed and write the offers for both buyers, here are the correct procedures to follow:
You must disclose to ALL clients prior to writing the offer.
The form is located in Dotloop Under Forms: "Notice of Contemporaneous Offers"
In most cases, you will have already written one of the offers when the second buyer decides to write their offer, so you will need to contact both buyers before you write the second offer. The disclosure must be in writing. If due to time constraints you must make verbal disclosure, follow up with written/email ASAP.
There is no breach of duty of confidentiality when you make your disclosure
You should only disclose the existence of the other offer. Do not disclose buyers' identity or terms of the offer. When assisting your clients, you should begin acting as a dual agent and limit your assistance to your clients in accordance with dual agency principals (no assistance with pricing, etc…).