Permission to Disclose
Permission to Disclose is often found in a standard real estate contract under the section titled “Permission.” It will say something like: Buyer and Seller grant permission [to Brokers] to advise the public of this sale upon execution of this Contract, and Brokers may disclose price and terms herein after close of escrow. Being able to disclose this type of information is advantageous to Brokers. They will be able to advertise a sale, once finished, and reveal selling price and terms. This information may or may not also be entered into any private data base they develop on market conditions and also be useful in obtaining back-up contracts.
This information can be disclosed once a contract is “executed.” This can mean one of two things; the contract has gained the last signature needed or the sale is closed. In real estate “executed” is usually meant to be the first. Buyers and sellers may not want this information disclosed before closing. What is the meaning of this? If a Broker is representing the seller and you make an offer on the property, the broker can disclose your offer price to a buyer he is also representing. The other buyer will then have the chance to make a better offer; this may, or may not, cut you out of the deal.
To prevent this from happening you might consider including offer-confidentiality language in your contract. This section would simply state that the price, and terms, of the buyer’s offer cannot be disclosed by the broker, seller, or associates of either party, at any time, starting from the moment the offer is received by the broker or seller, except as required by recordation.