Can a Listing Agent Disclose Competing Offers?
Multiple-offer situations are one of the most misunderstood topics in real estate. Buyers often assume offers are confidential. Sellers often hear conflicting advice. Agents frequently err on the side of silence out of fear rather than clarity.
So what’s actually allowed?
Let’s break down what the law says, what the NAR Code of Ethics requires, and what California’s PRBS disclosure explicitly warns buyers about.
Are Real Estate Offers Confidential?
Short answer: No, offers are not automatically confidential.
In most real estate transactions, purchase offers are not inherently confidential unless all parties sign a written confidentiality agreement.
In California, buyers are explicitly warned of this reality in the C.A.R. Form PRBS (Possible Representation of More Than One Buyer or Seller), which states:
Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer’s offer unless all parties and their agent have signed a written confidentiality agreement.
This disclosure exists precisely because buyers frequently assume confidentiality when none exists.
Can a Listing Agent Disclose Other Offers to Buyers?
Yes, with seller authorization.
A listing agent works for the seller. If the seller instructs the agent to disclose competing offer terms, the agent may legally and ethically do so, provided no confidentiality agreement prohibits it.
What a listing agent can disclose with seller permission:
That multiple offers exist
Price and key terms of another offer
Deadline or escalation context
What cannot be disclosed without permission:
Buyer’s financial position
Buyer motivation
Willingness to pay more than offered
Those protections apply even in dual-agency situations.
How Does the NAR Code of Ethics Address Multiple Offers?
The NAR Code of Ethics is clear on two critical points:
Offers are not presumed confidential
Buyers must be advised that their offer may be disclosed
In California, that warning is satisfied through the PRBS disclosure, which every buyer signs when representation begins.
This means:
An ethical listing agent isn’t required to keep offers secret.
Their job is to be transparent and follow the seller’s directions.
Can a Listing Agent Share Offer Details Without Seller Permission?
No.
The listing agent must follow the seller’s instructions. If the seller does not authorize disclosure, the agent should limit communication to:
Existence of offers (if allowed)
Requesting highest and best
Timeline updates
Disclosing offer terms without seller consent may violate fiduciary duties and brokerage policy, even if state law allows disclosure with consent.
Is It Legal to Share Competing Offer Terms in California?
Yes, when properly authorized.
California law does not prohibit sharing offer terms, and the PRBS form explicitly warns buyers that disclosure may occur.
However, legality depends on:
Seller instructions
Absence of a confidentiality agreement
Truthful, non-misleading communication
False “offer shopping” or misrepresentation creates liability even when disclosure itself is lawful.
What Is Offer Shopping in Real Estate, and Why Is It Risky?
Offer shopping becomes problematic when:
Terms are exaggerated or fabricated
Buyers are misled about competition
Disclosure is used deceptively rather than transparently
Legal risk arises not from disclosure itself, but from misrepresentation, unequal treatment, or bad-faith tactics.
Professional disclosure must always be:
Accurate
Authorized
Even-handed
Should Buyers Ask for Confidentiality?
Yes , if confidentiality matters to them.
Buyers who want protection should:
Request a written confidentiality agreement
Include confidentiality language in their offer
Without it, buyers should assume their offer may be disclosed, as clearly stated in the PRBS form PRBS_12-18_LegalChange_Draft3.
Do Sellers Have to Disclose Multiple Offers?
No.
Sellers may choose to:
Say nothing
Disclose that offers exist
Share offer terms to drive competition
All are legitimate strategies. The key is informed consent and documented instruction.
What This Means for Buyers and Sellers
For Sellers
Disclosure can be a powerful negotiation tool
Strategy must be intentional, not reactive
Proper disclosure can increase net proceeds
For Buyers
Offers are not automatically private
Strong terms matter more than secrecy
Clarity upfront prevents surprise later
Bottom Line: Are Multiple Offers Confidential?
Only if everyone agrees they are.
Absent a written confidentiality agreement:
Offers may be disclosed
Sellers control disclosure strategy
Agents must act ethically, truthfully, and with consent
Understanding this distinction protects buyers, empowers sellers, and keeps agents compliant.
Why Skilled Representation Matters in Multiple-Offer Situations
Multiple-offer negotiations are not about secrecy, they are about strategy, clarity, and lawful disclosure. When handled correctly, disclosure can strengthen a seller’s position, increase competition, and lead to a higher net price. When handled poorly, it creates confusion, mistrust, and unnecessary risk.
The difference is not the rule itself, it’s how the agent applies it.
Understanding the NAR Code of Ethics, California disclosure forms like PRBS, and state law is essential. But equally important is knowing when disclosure helps, when it hurts, and how buyers actually respond in real time. That level of judgment comes only from experience, market fluency, and precise communication.
Sellers deserve representation that understands both the legal framework and buyer psychology. Buyers deserve transparency so they can compete intelligently, not blindly.
If you are selling a property in a competitive market, the way offers are handled can materially impact your final result. Strategy matters. Timing matters. Representation matters.