Why should you not accept a back pocket offer from a buyer who is also your client if the seller is also your client?

• A. Because the existence of a second offer is a material fact which must be disclosed to your seller client
• B. It would violate confidentiality
• C. It could breach fiduciary duty
• D. It is illegal

Answer: (A)

The main idea is that you must disclose material information to your client when representing both sides. The existence of a second offer from a buyer you’re also representing is a material fact because it could influence the seller’s decisions—whether to counter, wait, or accept the current offer. Sharing that there’s another offer helps the seller act with full information and fairness, which is a fundamental duty in real estate practice.

Confidentiality isn’t the overriding issue here, and dual agency raises fiduciary concerns, but they aren’t as precise as the need to reveal a material fact that could affect the seller’s decision. It isn’t inherently illegal for dual agency if handled properly under the rules.