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Is a broker required to give any offers made to the seller?

If I make an offer which I believe is reasonable does the Broker have to inform the seller of the offer?

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The BAF Group LLC

Ethically, yes. In some states, Business Brokers are licensed through the Real Estate authority, and in those state the Broker is probably required by law to provide the offer. But in states where there is no licensure of Brokers, it is probably not a legal requirement for them to make such an offer - but the ethical issue is still there. If you believe the Broker might hesitate to bring the offer to the Seller's attention, I would make certain that you are being very formal in your offer, so that the Broker realizes you are very serious: Put the offer in a formal letter or a letter of intent, along with a deposit. You might also offer documentation of your ability to pay in cash, or that you have access to financing. Make certain they know you are serious. Assuming the offer is substantially below what is being asked, you might detail why you believe your offer is "reasonable" into the letter of intent, so that the Seller realizes you are not just trying to get something for nothing. You might even request that the offer be presented to the Buyer in your presence. As a Broker, I hate it when people do that; however, if the offer is done in a proper manner and the Buyer appears sincere, I go along with that program. What I will not do is take a verbal offer to the Seller from some one who says, "Ask him if he will take $X."

May 9, 2009

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