It includes a statement of the DRE’s view of “best practices” for listing agents:
• Market the property via multiple listing service or other broad advertising means. • Make sure the seller agrees to and understands how the property will be marketed. • If using a “Coming Soon” strategy, do not accept and act on offers until a property has been broadly marketed. • If the property will not be fully marketed, obtain prior written permission from the seller that demonstrates they understand that such a “Coming Soon” strategy may not result in receiving the best sales price. • Avoid double-ending a property that is not fully marketed—it is best to refer potential buyers to another agent.
Dual Agent Dilemma
The DRE notes that “a listing agent who encourages the use of a “Coming Soon” program, without broadly advertising a property via a multiple listing service or other means, especially exposes himself/herself to the potential for an increased chance of civil liability and regulatory action when the agent also then represents the buyer in a dual agent capacity.
Such a dual agent would need to be able to demonstrate that the agent acted in the best interests of the seller to obtain a purchase price that was as high as could be expected for a fully marketed property. This agent, who receives commissions on both ends of the transaction, could face scrutiny questioning whether they worked to obtain the best offer possible for the seller or was acting in such a capacity for personal financial gain.”
For an agent who takes a listing and markets the property as “coming soon” the C.A.R. Residential Listing Agreement explains the benefits to the seller of using the MLS and the impact of opting out. For the seller to instruct the agent to opt out of the MLS, the seller and broker must initial paragraph 5 of the RLA. Additionally, the seller must sign form SELM (Seller Instruction to Exclude Listing from Multiple Listing Service) or the comparable form provided by the MLS.