QUESTION: Sir John, a prospective buyer of my property named Mr. Hong called me up directly to follow-up about his offer to buy my property. He said he made the offer to my Broker two months ago. My real estate agent only informed me about Mr. Lopez offer and he didn't tell me about Mr. Hong. What will I do?
ANSWER: If you close the sale with Mr. Hong, you don't need to pay the Broker.
The agent violated the Code of Ethics. Section 3 paragraph (g) of the Code of Ethics in Real Estate Service says that in the event that more than one formal offer on a specific property is made before the owner has accepted a proposal, all written offers should be presented (by the broker)to the owner for his decision.
Listing Brokerage Agreements also normally contain a clause that Agents would be entitled to a commission provided the agent have registered the prospective buyer to the seller before the termination of the listing agreement. The sale of the property is a condition that terminates the listing agreement. This is the reason why agents should not fail to register the prospective buyer to the owner the soonest time possible.
Moreover, sometimes, the agents deliberately conceals information like this because of ill intent to offer another property to the prospective buyer.