The In-House Listing and the $520,000 Secret

Alex can write the offer only if the brokerage's dual representation is properly consented to before the parties commit.

• Rosa's representation of the seller and Alex's representation of Kim are both agency relationships of Copper Vista Realty; Tom is the agent, and the two licensees are not separate agencies. Representing both sides is dual agency, which requires the informed written consent of all parties.
• "Informed" is the operative word. Retroactive consent is not informed consent: by the time the closing table arrives, Kim and the seller have already negotiated price, repairs, and deadlines in reliance on advocacy they did not receive. A signature collected afterward documents nothing except that the parties were asked to ratify a done deal.
• The consent must also explain the consequences - that the brokerage will not advocate for either side, that confidential information will not be passed between the parties, that the parties may decline and use a different brokerage, and that they may seek independent advice.

If Kim declines, the brokerage cannot act for both. Rosa keeps the seller; Kim is either represented elsewhere or proceeds unrepresented after a written disclosure. Alex should notify Tom in writing that the closing-table plan is rejected and put the consent conversation in the file.

In both scenarios: nowhere near the seller's side. The difference is why, and the difference matters when Alex has to explain herself later.

If Kim refuses consent (single agency for Kim): Alex owes Kim undivided loyalty and confidentiality. The ceiling and the relocation date are Kim's negotiating posture. Disclosing either is a breach regardless of how helpful it would be to closing the deal.

If Kim consents to dual agency: the brokerage now owes confidentiality to both parties. Alex still may not hand Kim's ceiling to Rosa, and may not let it shape advice the brokerage gives the seller - for example, telling the seller to hold firm because the buyer will go higher. In dual agency the brokerage's job is to facilitate the transaction neutrally: present the offer at $485,000, answer questions factually, and let the parties decide.

Practical safeguards:

• Alex should confirm the confidentiality limits in writing at the time consent is taken, so Kim is not later surprised that Alex cannot champion her.
• If Kim wants an advocate who can push hard on price, that is precisely the reason to decline dual agency - and Alex should say so plainly while Kim still has the choice.
• Document what Alex did not convey. In a later dispute, the file is the only proof that the ceiling stayed on Alex's side of the table.

Known material physical facts are not a bargaining chip; they are a disclosure obligation.

• Alex's client is Kim, and a licensee owes the client disclosure of facts that materially affect the property's value or the client's decision. A roof leak - even a patched one, because it raises the question of whether the repair held - is material. Alex must tell Kim the substance: there is information indicating a prior roof leak, and the SPDS appears inaccurate.
• Dual agency does not change this. The confidentiality duty protects a party's negotiating position - motivation, ceiling, deadline. It does not authorize concealing known defects from a party who is being asked to buy the house. The duty of honesty and fair dealing runs to both parties, and no consent form can waive a misrepresentation.
• Alex can protect the source: she does not need to narrate how Tom learned it. But she cannot withhold it because the information arrived through the seller's side of the brokerage.
• The listing side has a separate problem: the SPDS says there are no known roof problems while the seller has described a leak. Rosa and Tom should have the seller correct the SPDS in writing, and the correction should be delivered to Kim.

Practically: Alex advises Kim to obtain a roof inspection within the inspection period and to put any repair request or cancellation in writing, and Alex documents the disclosure with a date and time.