Possible Representation of More Than One Buyer or Seller disclosure (from the California Residential Listing and Purchase Agreements), along with clear explanations:
🔁 Questions Agents Ask Brokers About:
“Possible Representation of More Than One Buyer or Seller” Disclosure
(California Association of REALTORS® – RPA & Listing Agreement)
⚖️ 1. What does “Possible Representation of More Than One Buyer or Seller” mean?
Explanation:
It refers to the brokerage potentially representing multiple clients — either multiple buyers making offers on the same property, or representing both a buyer and a seller in the same transaction (dual agency).
👥 2. Can our brokerage represent two buyers competing for the same property?
Explanation:
Yes. The disclosure lets buyers know that your brokerage might represent another buyer making an offer on the same property. However, agents cannot favor one buyer over another, and must keep all client information confidential.
🔒 3. Am I allowed to tell my buyer what the other buyer (represented by our office) is offering?
Explanation:
No. Confidentiality is critical. Even if both buyers are from the same brokerage, you cannot share offer terms, motivations, or strategies without written consent.
📝 4. Do I need to disclose to my client that our office is representing another party?
Explanation:
Yes. This is disclosed in the standard C.A.R. forms, but if the client asks or if there’s a concern about impartiality, explain that all clients are treated equally and confidentially under the broker’s supervision.
🧑⚖️ 5. Is this the same as dual agency?
Explanation:
Not necessarily. Dual agency is when the same agent or brokerage represents both the buyer and the seller in one transaction. Representing two buyers competing for the same property is not dual agency, but it still requires ethical handling.
🛑 6. Can I refuse to work with a buyer if my brokerage is already representing a competing buyer?
Explanation:
Yes, ethically and practically, you can refer them out if there’s a concern of conflict or discomfort. But legally, it is allowed — as long as confidentiality is preserved and both parties are aware via disclosure.
🤝 7. If I represent both sides, can I still negotiate price and terms for both?
Explanation:
In a dual agency, your role becomes neutral — you cannot advocate or negotiate on behalf of either party. You must facilitate the transaction fairly and disclose all material facts to both sides.
🧾 8. Where is this disclosure located in the contracts?
Explanation:
This disclosure is found in:
- Residential Purchase Agreement (RPA) — Paragraph titled “Broker Representations”
- Listing Agreement — Under the section titled “Broker’s and Seller’s Duties”
🧷 9. What if a buyer or seller refuses to sign the disclosure?
Explanation:
You cannot proceed with the representation unless they agree to the terms in the contract. This clause is not optional — it’s a part of agency transparency requirements in California.
✅ 10. What’s the broker’s responsibility in managing multiple representations?
Explanation:
The broker must supervise all licensees to ensure fairness, confidentiality, and lawful conduct, and must implement policies to manage risks, especially where clients have potentially competing interests.
Disclaimer:
The questions and answers provided are for general guidance only and may not cover all details or apply to every situation. If anything is unclear or you need further clarification, please visit car.org for official resources and the most up-to-date information from the California Association of REALTORS®.
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