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Legal Information Lines: Frequently Asked Questions -
Multiple Offers on Multiple Properties
Christal Park Keegan, NVR Legal Information Line Attorney
March 22, 2021
Q. In the current competitive market, my buyer is tired of getting beat out by
other buyers. My buyer wants to put offers on three different properties
simultaneously. Is this allowed?
A. This type of practice makes lawyers’ heads explode and is strongly
discouraged. Remember, underlying every contract is the duty of good faith and
fair dealing. Good faith is defined in the Black’s Law Dictionary as honest in
purpose, faithfulness to one’s obligations and absence of fraud or to seek
unconscionable advantage. Unless the buyer’s agent has knowledge that the
buyer can enter into all three contracts, the offers do not have good faith!
Furthermore, practicing this way can negatively impact your real estate license
because the statutes require competence, honest dealings and compel the agent to
turn over monies deposited right after acceptance, specifically:
- NRS 645.252(2) requires the exercise of reasonable skill and care with
respect to all parties to the real estate transaction.
- NRS 645.633(1) subsections: (h) Gross negligence or incompetence in
performing any act…, and (i) Any other conduct which constitutes
deceitful, fraudulent or dishonest dealings.
- NAC 645.605(1). In determining a licensee’s guilt under NRS
645.633 the Commission considers whether the licensee has done
their utmost to protect the public against fraud, misrepresentation or
unethical practices...
- NAC 645.630 (1) requires the licensee to deliver to the seller a complete
offer.
- NRS 645.630(1)(k) upon acceptance failing to deposit any monies received
as earnest money before the end of the next banking day unless otherwise
provided in the purchase agreement, and NAC 645.657, a licensee who
receives a deposit from his/her client must pay over the deposit to the
designated payee within 1 business day after receiving a fully executed
contract.
760 Margrave Drive, Ste 200 • Reno, NV 89502 • Toll free 800-748-5526 • Office 775-829-5911 • Fax 775-829-5915 • NevadaRealtors.org
- Risk Reduction Tip! This is really a good time to remember it’s the
buyer’s agent’s responsibility to ensure offers contain earnest money
deposits (EMD)(if one is included) and that EMDs are transmitted to
the seller’s agent, which thereby transfers the responsibility to seller’s
agent to comply with NRS 645.630(1)(k).
If the buyer really wants to submit multiple offers on multiple properties, point
them to hire their own legal counsel who can shoulder the legal liability that comes
with the possibility of having to specifically perform on more than one contract.
The Nevada State Bar offers a free lawyer referral service and information
regarding that can be shared with your clients: Lawyer Referral Service – State Bar
of Nevada (nvbar.org)
Furthermore, on the selling side, check out the informational bulletin from the Real
Estate Division which provides guidance on how to fairly handle multiple offers:
Microsoft Word - Bulletin001.doc (nv.gov)
Statements made by the Nevada REALTORS® Legal Information Line attorneys on the telephone, in emails, or in legal
eNews articles are for informational purposes only. Nevada REALTORS® staff attorneys provide general legal information,
not legal representation or advice regarding your real estate related questions. No attorney-client relationship is created
by your use of the Legal Information Line. You should not act upon information you receive without seeking independent
legal counsel. Information given over the Legal Information Line or in these articles is for your benefit only. Do not practice
law or give legal advice to your clients! Inform your clients they must seek their own legal advice.
