The PAR Legal Hotline has seen an uptick in questions about whether listing brokers and/or sellers can refuse to show a property to certain buyers. Let’s cover two of the most common scenarios.
Do I have to show the property if… an unrepresented buyer refuses to sign a written buyer agreement with me?
Current MLS rules, adopted in the wake of the NAR class action settlement in 2024, require that MLS members who are “working with” buyers obtain some sort of written agreement that outlines the scope of their relationship and the fees that may be payable by that buyer. The NAR FAQs explain that a broker is “working with” a buyer when they’re performing licensed real estate services on behalf of the buyer, but that they’re not working with a buyer when they are merely showing a property as a listing agent on behalf of their seller. That distinction is critical.
If an unrepresented buyer contacts any broker other than the listing broker to set up a showing, a written buyer agreement is required prior to touring the home, because the broker would be there for the purpose of assisting the buyer in the showing. The broker can present whatever buyer relationship forms they want to use (exclusive, non-exclusive, longer term, shorter term, etc.) with whatever fees they want to charge, and it’s simply a negotiation with the buyer as to whether they will agree to the terms. If that buyer refuses to sign anything and wants to remain unrepresented, the broker cannot show the property. (Or more precisely, if they do show the property, they are likely in violation of MLS rules and could be subject to sanction.)
But if a buyer contacts the listing broker to set up a showing, the answer is different. When a listing broker is contacted by an unrepresented buyer who makes it clear they do not want any sort of representation, the broker who opens the door for a showing is doing so on behalf of their seller, because facilitating that showing is one of many steps that could help their seller find a buyer. As a listing broker, refusing to show the property to a buyer who won’t sign a buyer agreement could be viewed as a violation of the broker’s fiduciary duties to the seller.
In fact, PAR was recently made aware of a State Real Estate Commission complaint on exactly this topic. Though the commission elected not to prosecute this specific complaint, their non-prosecution letter back to the broker (used with permission) says:
- While we have chosen to not prosecute this case, the investigation suggests that you may have violated Section 35.3 12(a)(3) of the regulations of the State Real Estate Commission by, while acting as a listing agent, failing to make a continuous and good faith effort to find a buyer for the property. Specifically, it appears that you refused to show a property listed by [the brokerage] to an unrepresented buyer unless the buyer entered into a written buyer agency agreement with [the brokerage]. Please review Paragraph 58(vi) of the August 2024 National Association of Realtors (NAR) Settlement Agreement as well as the NAR Settlement FAQs relating to written buyer agreements published by NAR. (Emphasis added)
In short, a listing agent who refuses to show the property to an unrepresented consumer potentially reduces their client’s chances to sell that property, so they cannot refuse showings based on some sort of internal policy on agency — particularly one that the commission might view as primarily benefitting the broker. Though it’s unclear exactly why the commission chose not to prosecute this particular complaint, brokers should presume that the underlying rationale could be used to justify prosecutions in the future.
Do I have to show the property if… my seller tells me to exclude someone from showings?
This question appears in a variety of formats, but the most common seller exclusion requests tend to center around nosy/annoying/nemesis neighbors, ex-partners (or soon-to-be ex-partners) and their friends/relatives, and brokers/agents with whom the seller has had a bad personal or professional interaction.
A good starting point here is to remember that the seller controls access to their own property, and they have the general right to exclude individuals if they want to. That’s reflected in Article 3 of the NAR Code of Ethics, which says “Realtors® shall cooperate with other brokers except when cooperating is not in the client’s best interest.”
A primary concern is to ensure that the exclusion is not based on a protected class. For example, it’s probably acceptable to exclude a neighbor if the seller says, “I would never let the neighbor in because we’ve had a feud for the last 20 years and I wouldn’t give them the satisfaction!” But it’s a potential fair housing violation if the reasoning is more like, “The neighbors probably just want to get other [enter protected class here] to move in here and I’d never do that to my neighbors.” If there’s any feeling that the request is somehow related to a protected class, explain that this would be illegal and then fire that seller if they insist on trying to maintain that exclusion. Of course, if you have any other concerns about these requests, always run them past a broker or manager.
If you explain the possible downsides, but a seller still wants an exclusion, get that in writing as part of the listing contract so the broker’s responsibilities are as clear as possible. For example, don’t jot down “no neighbors” — list the specific neighbors who should be excluded. Or if the exclusion is focused on a particular agent, discuss whether their intent is to simply exclude the individual from showings or if they’re signaling in advance that they’d likely reject any offers through that agent out of some principle. And ask if they’re trying to exclude just that agent or an entire brokerage, as clients don’t always understand the difference. This will be a huge help in your later discussion with the buyer agent/broker so that they can best advise their clients.
At that point, the listing agent should signal something general in the MLS or via your showing service to ensure that you’re able to convey this information to buyer agents. Do NOT include names or details in the MLS or showing instructions, but something like “contact listing agent before scheduling” or “all showings will be reviewed by listing agent” will alert buyer agents that there’s something they’ll probably need to be made aware of. Then it’s usually best to talk with your client about exactly what you’ll say, since you want to be sure you’re not overstepping in whatever explanation you provide.
Finally, though this may seem obvious, don’t ever make it look like you’re using an agent/broker exclusion as a way to try to get business. If the seller insists on excluding a particular agent, simply explain the exclusion and let that agent work through it with their client. Anything like, “You just sign with me as a buyer agent instead,” would potentially be viewed as more self-serving than client-focused and could create issues.
Do I have to show the property if… something about the showing feels off?
Realtor® safety, particularly at showings and open houses, is something all agents and brokers need to be aware of. Brokers should encourage and support safety policies, and every agent should have their own safety strategies in place for their own protection. If you ever feel unsafe or like you’re being pushed into a showing that doesn’t feel right, your first obligation is to yourself and your own safety. For more safety tips, view the recording of PAR’s most recent webinar or read the webinar recap.
That said, part of the reason for having policies and procedures is to ensure that you’re treating all potential buyers and buyer agents without discrimination. For example, if you ask ALL buyers to meet in your office and provide ID before you do a showing and one buyer refuses, that’s a good reason not to schedule their showing. But if you’d drop everything to do a showing for most buyers and only ask that one buyer for ID, then it might look more like you’ve targeted this buyer for some discriminatory reason.
And I’ll close by noting that scammers are ever-present in today’s world. Though many high-profile scams focus on the seller/listing side of the transaction, there are others in which a scam buyer is actually targeting the buyer broker or agent. General policies that allow the brokerage/agent to get buyer information early in the process can help guard against some of these scams, and they need to be implemented as uniformly as possible. And of course, if you do find yourself with a safety/scam issue, be sure to communicate with your broker/manager and your seller client so everyone is on the same page.
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