The Quiet Divorce Listing and the Brother-in-Law
Luis is a sales agent whose license is held by Harborline Realty. Eighteen months ago he represented the Nguyens in buying 312 Oak Hollow. The Nguyens are now divorcing and want to sell quickly and quietly. They told Luis they will not take less than $520,000 and do not want the home entered into the MLS. Luis's brother-in-law Dev wants to buy it and has asked Luis to "get him a deal." Luis mentioned the situation to his team leader, who suggested the team advertise the home as a "coming soon" post on the team's Instagram page, which carries the team name but not Harborline's. Luis's sponsoring broker knows nothing about any of this yet.
1. Dev wants Luis to represent him as a buyer. What must happen before Luis can act, and can Luis buy the property himself?
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Representing Dev. Luis cannot hand Dev the Nguyens' confidential information - the $520,000 floor, the divorce timeline, or their motivation. If Luis represents Dev, the brokerage becomes a dual-agent/intermediary situation, which requires written consent from both the Nguyens and Dev, written appointments, and the broker's knowledge and involvement. Luis must also recognize that the Nguyens are his former clients; confidential information from that representation does not expire with the listing.
Buying it himself. A licensee may purchase for his own account, but he must disclose in writing, on the TREC notice form, that he is a licensed agent, and obtain informed consent. Luis must withdraw from representing the Nguyens and advise them to retain independent representation or at least independent advice, because a licensee buying from his own clients is a conflict he cannot manage by himself. Given that he already holds their bottom line, the cleanest and safest answer is that Luis should not buy this property.
2. Evaluate the team leader's "coming soon" Instagram plan against the sellers' instructions and the brokerage's obligations.
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It violates the clients' instructions. The Nguyens said no public marketing. Advertising the property without written authorization breaches the duty of obedience and the listing agreement. Luis needs written permission to market publicly before any post goes up.
Advertising rules. Any advertisement by a team must identify the brokerage; the team name alone is not enough, so a post with only the team name fails that requirement. The post must show Harborline Realty's name.
MLS consequences. If Harborline participates in an MLS with a clear-cooperation rule, any public marketing - including an Instagram teaser - starts the clock and requires the listing to be filed with the MLS within the rule's short window, typically one business day. "Coming soon" status may be permitted, but only if the MLS rules allow it and the sellers agree in writing. A genuinely off-market sale with no public marketing avoids this, but then nothing can be posted.
3. The Nguyens are divorcing. What signature and disclosure issues does that raise for the listing and the sale?
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Signatures. Both spouses must sign the listing agreement and the deed. A listing taken from one spouse alone is a problem: the non-signing spouse can later challenge the sale, and a title company will not close a conveyance missing an owner's signature. If one spouse is unavailable, the broker needs a durable power of attorney specifically authorizing the sale and acceptable to the title company. Confirm how title is held - Texas community property presumptions matter here.
Disclosure. The divorce is not a property defect and need not be volunteered to buyers; the sellers' motivation and urgency are confidential. What must be disclosed is anything about the property's condition. Practically, the broker should also expect that a divorce sale may require both spouses to agree on price and terms, and should keep instructions in writing so one spouse cannot later claim the broker acted on the other's sole direction.