DIRTY TACTIC #1

Some brokers are willing to lie just to close a deal. One common lie is about being the "exclusive" broker for a property.

An "exclusive" broker is the only broker authorized to sell a property or the sole broker chosen by a buyer to represent them. Unethical brokers make this claim to mislead other brokers or buyers, preventing them from inquiring with other brokers who have the same listing or to undermine other brokers' efforts to sell the property.

For instance, a buyer schedules a viewing of a beach lot with Broker 1. The same buyer also contacts another broker (let's call her "Unethical Broker" or "UB") about another lot nearby. Broker 1 arranges the viewing with the owner and registers the buyer’s name.

The night before the scheduled showing, the owner informs Broker 1 that another broker (UB) registered the same buyer and claims to be the buyer's exclusive broker. UB insists she represents the buyer exclusively.

Broker 1 then forwards screenshots of texts with the buyer, confirming the showing schedule and text confirmation that the buyer never agreed to exclusive representation.

Out of curiosity: Have you ever experienced a broker falsely claiming they were exclusive?

Option 1: Yes, many times.

Option 2: Yes, once or twice.

Option 3: Never.

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Poll Results Are In! Have You Encountered Brokers Who Falsely Claim Exclusivity?

57% said it has happened to them once or twice.

14% said it has happened to them many times.

29% said it has never happened.

As the effects of the real estate slowdown become more pronounced, expect this to happen more frequently.

What to Do If Someone Claims They’re Exclusive

Ask for Documentation: Request an Exclusive Authority to Sell Agreement or an Exclusive Buyer Representation Agreement. If they can’t provide one, chances are they aren’t exclusive to the property.

Verify the Details: A broker with the exclusive right to sell a property or represent a buyer should have this right in writing. This ensures they get the commission if the property is sold by someone else.

Request Redacted Documents: If they claim they can’t share the Authority to Sell Agreement to protect the owner's identity, ask them to redact the names. Look for:

A statement confirming the listing broker is exclusive

The commission rate (I’ll explain this in another post)

The validity period of the exclusive arrangement

The owner's signature

If they still refuse to provide the Authority to Sell Agreement, they are likely not exclusive. It’s as simple as that.