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  1. #1

    Default Can a Dual Agent Continue to Seek Other Offers After the Seller Verbally Accepts

    My question involves real estate located in the State of: PA

    I know that a seller's agent can legally disclose what other offers they've had etc. etc. and can continue right up until the deal is signed, because PA real estate contracts must be in writing by law..this isn't about that.

    Say one puts an offer on a house, and signs a dual agency agreement as the buyer. The seller verbally agrees to a price and informs the dual agent of this.

    The dual agent undoubtedly owes a fiduciary duty to the buyer - specifically "Take no action that is adverse or detrimental to either party's interest in a transaction"
    PA. Code § 35.314

    If the dual agent then a) carried on showing the property the following day b) and then took another offer even after learning the seller had accepted the offer, even only in writing (and this isn't a statute of frauds question, btw, just specifically a 35.314 question), would they not be in breach of fiduciary duty to the buyer that they represented as dual agent?

    And to add one most important detail - if the dual agent revealed the original offer price to the newly interested party, would that be a breach of confidentiality to the original buyer?

  2. #2
    Join Date
    Jan 2006
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    Default Re: Can a Dual Agent Continue to Seek Other Offers After the Seller Verbally Accepts

    I know that a seller's agent can legally disclose what other offers they've had etc.
    disclose to whom? If anybody other than the seller, depending on the circumstances it could be a breach of the agents fiduciary duty to the seller.

    Say one puts an offer on a house, and signs a dual agency agreement as the buyer
    .do you mean WITH the buyer? If so you best be running over to the seller and informing them as that is where your fiduciary duty lies before you sign that second agency contract. Signing as a buyers agent can put your sellers agency in jeopardy and requires disclosure to the seller.

    The seller verbally agrees to a price and informs the dual agent of this.
    absolutely meaningless.

    The dual agent undoubtedly owes a fiduciary duty to the buyer - specifically "Take no action that is adverse or detrimental to either party's interest in a transaction"
    PA. Code § 35.314
    actually he has a fiduciary duty to both seller and prospective buyer at this time and it is a very difficult line to walk without screwing up. Again, his first duty was to the seller so he best act to protect the seller in all actions lest Mr agent is getting sued.

    agent can continue showing the property up to the day of closing as long as there is full disclosure to all involved parties (and the seller allows it)

    and then took another offer even after learning the seller had accepted the offer,
    seller never accepted an offer up to this point.

    even only in writing (and this isn't a statute of frauds question, btw, just specifically a 35.314 question), would they not be in breach of fiduciary duty to the buyer that they represented as dual agent?
    well, their first breach of their duty was not having the seller sign an acceptable contract. The second breach is why you don't play this game. Agent has also breached their duty to buyer they have contract with by not getting their offer signed by the seller.

    And to add one most important detail - if the dual agent revealed the original offer price to the newly interested party, would that be a breach of confidentiality to the original buyer?

    who cares. Agent is getting sued because agent did not get first buyers offer signed.

    but yes, this could be an additional breach with the contracted buyer but by not acting in the best interest of the seller (to get a better offer since first buyer does not have an enforceable contract) can get agent sued for a breach of their fiduciary duty to the seller.

  3. #3
    Join Date
    Sep 2010
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    19,901

    Default Re: Can a Dual Agent Continue to Seek Other Offers After the Seller Verbally Accepts

    To make it simpler:

    1. An offer is not accepted unless all is in writing. Statute of frauds requires real estate purchase contracts to be in writing.

    2. Nothing precludes an agent, dual or otherwise, to continue to solicit and deliver offers. In fact, he's not doing his duty to deliver it is such an offer is made while a contract is NOT accepted. In certain circumstances, it's not improper to solicit offers after a contract is in place though they should be clear these are backups to an existing contract.

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