[Offers and Negotiations – Ethics and Disclosures] In North Carolina, if a listing broker is tempted to disclose the terms of an offer to get another…

According to North Carolina Real Estate Commission (NCREC) rules, the price and other material terms of an offer are the confidential property of the party who made the offer (the buyer/offeror). A listing broker, despite their fiduciary duty to the seller, is prohibited from disclosing these terms to a competing party to solicit a better offer unless they have received the express authority of the offering party. The seller's permission is insufficient as they do not own the confidential information contained within the buyer's offer. This rule maintains fairness and protects the buyer's negotiating position.

A. The seller cannot grant permission to disclose the confidential terms of an offer made by another party (the buyer).

C. The existence of multiple offers is a material fact that must be disclosed, but the specific terms of those offers remain confidential.

D. Disclosing the terms of any offer, including the highest, without the offeror's express permission is a violation of NCREC rules.

1. North Carolina Real Estate Commission. North Carolina Real Estate Manual (2023-2024 ed.). Chapter 8, Handling Offers and Closing, Section: "Disclosure of Offer Terms," pp. 8-10, 8-11. The manual explicitly states, "A broker is prohibited from disclosing the price or other material terms of an offer to a competing party without the express authority of the party making the offer."

2. North Carolina Administrative Code. Title 21, Chapter 58A, Section .0115, "Disclosure of Offers." The rule states: "(a) A broker shall not disclose the price or other material terms contained in a party's offer to purchase, sell, lease, rent, or option real property to a competing party without the express authority of the offering party."

3. UNC School of Government. North Carolina Real Estate Law and Practice, by Patrick K. Hetrick, James B. McLaughlin Jr., and Patricia A. Moylan. Chapter 10, "The Real Estate Contract," Section 10.5 "Duties of Agent in Offer and Acceptance Process." This text reinforces the principle that offer terms are confidential to the offeror and cannot be used as "leverage" with other buyers without the offeror's consent, citing NCREC Rule 58A .0115.