April 1st, 2024 at 1:30 pm
Background: The Legal Tip from 2 weeks ago addressed the disclosure of a buyer’s name. The issue usually arises when a listing agent wants a buyer’s agent to disclose the name of a buyer. The listing agent generally wants that information to include in the listing agent’s safe harbor list of prospective buyers when the listing expires. The legal conclusion that we reached 2 weeks ago was that it’s best practices for a buyer’s agent to ask the buyer for permission before divulging the buyer’s name to the listing agent. The reason is the buyer’s agent has a duty of confidentiality that may prevent the buyer’s agent from disclosing the buyer’s name.
Follow-Up Question: The follow-up question for this week is whether a buyer’s agent must first get the buyer’s approval before giving the buyer’s name to the listing agent. Is the answer Yes or No?
Answer: The answer is likely to be “No,” because there’s no law that specifically requires a buyer’s agent to treat the buyer’s name as confidential. However, the correct answer in any given situation ultimately depends on whether the buyer and buyer’s agent have decided together to keep the buyer’s name confidential. We don’t know in any specific situation whether that decision was made. We also don’t know what a buyer may try to claim concerning confidentiality. Hence, it’s safer and easier to just ask the buyer on a case-by-case basis for permission to divulge the buyer’s name to the listing agent.
-Thank You to Mark Schneidman (Santa Barbara Office) for suggesting this week’s legal tip!
Copyright© 2024 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of April 1, 2024. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. Written by Stella Ling, Esq.
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