Ethical behavior of broker

[Lori Taylor]

My selling broker wrote an offer on my property for a buyer without a broker and without my input.

Am I reasonable to be concerned as to who she is really representing? This is the first time I’ve used her.

[Renee Newland]

Hello Lori! I'm a commercial broker here in Colorado Springs, and this is a much more common practice in commercial transactions than residential. There is nothing unethical about your broker drafting an offer for an unrepresented buyer. However, in Colorado, Brokers are required to disclose their relationship with that Buyer as it also relates to their relationship with you (she most likely already did this). There are two different ways that your broker can do this - 1. Transaction Broker - meaning no longer exclusively represents you, but acts as a non-biased party "transacting" the deal for you both. In this case, she would also need to disclose this to you. - OR - 2. Treating the buyer as a "Customer", which, contrary to what it sounds, is actually less fiduciary duty to that buyer. This discloses that she is still representing you with her fiduciary duty, and is merely passing information back and forth for the buyer (this is what you would prefer as the Seller). 

As far as writing the offer without your input, that is not a problem as long as she is willing to correctly portray your input in a counteroffer. She can be acting in good faith with knowledge of your situation, but still draft an offer according to the buyer's wishes. It doesn't mean you have to accept it, and it doesn't mean she agrees with the terms either. Now, if she's unwilling to counter the terms according to your wishes, then I'd be concerned. 

Should she have let you know that she was drafting an offer for a buyer?...sure. But doing so without your input doesn't mean she was not acting in your best interest. In some ways, it may have been a strategic decision to get the buyer "on the line". As soon as you can get someone to make an offer, they have more vested interest in the situation, and they're more likely to negotiate. If the buyer felt as though they had no say in the deal points from the beginning (i.e. your broker told buyer how you wanted the deal structured), the buyer may have just walked away. Now you have a solid deal that you can counter, and possibly get under contract. 

I would suggest just asking her what disclosure she provided to the buyer in terms of their working relationship and see what she says. 

Best of luck with the deal!