Spotlight on Contracts & Forms

Posted on: December 5th, 2016 by Andrew Clark No Comments

CABR has a library of contract clauses and more than 40 contracts, forms and guides available for use by CABR members.

Non-Disclosure and Confidentiality Agreement

Did you know that a seller may not treat an offer received from a buyer as being confidential? In fact, the seller may choose to disclose the terms to other potential buyers without obtaining direct consent from the buyer.

Standard of Practice 1-13 of the Code of Ethics addresses your obligation regarding this possibility by stating (in part):

When entering into buyer/tenant agreements, Realtors® must advise potential clients of: … 5)  the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties.

If your client is concerned about a seller sharing terms of their offer with others, CABR has a form that can be used to establish an agreement between buyer and seller to keep that from happening. Keep in mind, however, that a seller may be reluctant to sign such an agreement and its use could put your buyer at a disadvantage, as the confidentiality agreement must be signed prior to sending over the actual offer.

You can view the form by signing in at www.cabr.org.