The Possible Representation of More Than One Buyer or Seller, also known as the “PRBS”, is disclosure form provided by the California Association of Realtors. The single paged PRBS disclosure is used with high frequency for real estate transactions in California.
This disclosure form is considered to be a representation at the broker level. This means the Buyer’s and Seller’s Broker is legally representing them. Or in the case of a dual agency, the Broker is representing both.
The salesperson, also known as the agent, is only an associate licensee of the broker. They act on behalf of the brokerage.
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Possible Representation of More Than One Buyer or Seller Disclosure Breakdown
This disclosure identifies that the real estate brokerage company (individually or through its associate licensees) might be working on behalf of multiple buyers and sellers. And because of this there is a possibility that buyers or sellers may be competing against each other.
The broker may be working with many potential buyers at the same time in real estate. Due to this occurrence there is the possibility that potential buyers may have an interest in, and make offers on, the same properties as the other buyers the broker may represent.
Some of these properties can even be listed with the broker they are working with.
It’s important to note that the broker can not limit or restrict any particular buyer from making an offer on any property they choose. Especially if the broker already has another buyer interested in the same property.
The Broker may have listings on many properties at the same time. And because of this the broker will naturally attempt to find buyers for these listings. Some of these listings may appeal to the same potential buyers. And thus the broker shall market all listed properties to all potential buyers, even if the broker has another listed property that may appeal to the same potential buyers.
There are times when both the Buyer and the Seller are represented by the same Broker. Both Buyers and Sellers are acknowledging and consenting to the Broker to act as a dual agent to the transaction.
During a dual agency transaction, buyers and sellers agree that a dual agent may not disclose any confidential information without express permission to do so.
This includes, but not limited to the following:
- Financial details
- Financial motivations
- Bargaining positions
- Information that may impact the price
- Information that may affect Seller;s willingness to accept a price lower than the listing price
- Information that may affect a Buyer’s willingness to pay a price greater than the listing price.
Additionally, the dual agent is obligated to disclose any known facts that may affect the value or desirability to each party.
Offers that are submitted are not usually considered confidential unless requested via a written agreement. If there is no confidentiality agreement the buyer is being made aware that the seller or listing agent can disclose the terms of the offer received.
Information that can be disclosed depends on many different factors. Those factors can be current market conditions, any common practice in the real estate industry, marketing strategies, and or by the instructions given by the seller.
When the PRBS is Used
Buyers and Sellers will come across the possible representation of more than one buyer or seller disclosure at two different occasions. Buyers will see the PRBS disclosure when the real estate agent drafts up their offer package. And the Sellers will see this disclosure when agreeing to their listing terms with their real estate agent.
Who Signs the Possible Representation of More Than One Buyer or Seller?
Buyers, Sellers, Listing Agent, and the Buyers Agent are all required to sign and fill out the PRBS.
Buyer: Signature, name and date
Seller: Signature, name and date
Buyer’s Agent: Brokerage name, Agent name, Agent Signature, Agent DRE license number and date
Seller’s Agent: Brokerage name, Agent name, Agent Signature, Agent DRE license number and date
Since both Buyers and Sellers may sign this form on different occasions it is possible to have two partially signed PRBS disclosures. It is common practice to use the PRBS that is provided in the initial offer made by the Buyer.
When ensuring the completion of this form it is important to make sure all fields on the PRBS are filled out and signed by each respective party. It is common for the Buyer’s and Seller’s agent’s signatures and DRE license numbers to be missing.
Disclaimer: This article is meant to educate, inform, and comment on a document that is protected by the United States copyright law. This article is only our interpretation of the subject document. We advise the reader to consult their broker or agent on any questions they may have. The reader is also advised to reach out to the California Association of Realtors for any additional information.