Can my firm implement a policy that says we will not work with unrepresented buyers?

QUESTION: I am the BIC of my firm, and we have been having a lot of issues working with unrepresented buyers on our listings. I think it might be beneficial to adopt a firm policy that prohibits listing agents from working with unrepresented buyers to avoid future problems. Before I decide, are there any issues or concerns that I should consider?

ANSWER: Yes, there are several important legal and ethical issues you should consider.

Real estate agents have a fiduciary duty to put their clients’ interests first. Brokers also have a duty to present all offers to their sellers, regardless of whether the offer comes from a represented buyer or not. Given these obligations, a policy that simply states your firm will not work with unrepresented buyers may violate both the License Law and the Code of Ethics.

While working with unrepresented buyers can present difficulties, it is best to approach these prospects on a case-by-case basis instead of instituting a blanket policy against them. It is true that some unrepresented buyers are just looking to make lowball offers or get a free view of the property for purposes other than a purchase. Unrepresented buyers also sometimes create a lot of extra work for the listing agent. However, other unrepresented buyers are serious candidates well worth your sellers’ consideration.

If your firm is going to adopt a policy regarding unrepresented buyers, a better approach might be to provide guidance to listing agents on how to assess unrepresented buyers. For example, is the buyer educated about the market where the listing is? Is the buyer a local investor, or are they a first-time homebuyer who probably needs a lot of help? Has the buyer purchased property themselves in the past? Has the buyer provided proof of funds? Does the buyer have legal counsel? Is the buyer capable of completing offer paperwork themselves? The answers to these questions may help, and if an offer does materialize, they will help the seller evaluate the strength or weakness of a potential transaction with the unrepresented buyer.

It should also be noted that refusing to work with unrepresented buyers may present antitrust issues. There is no law or rule that requires a buyer to hire an agent to represent them. It could be argued that firms that only work with represented buyers are limiting access to the marketplace and increasing costs for consumers.

Given all the foregoing legal and ethical issues, firms should consult with legal counsel before instituting a policy regarding unrepresented buyers. Doing so will help balance the pressures that unrepresented buyers put on listing agents, while also ensuring that the seller’s interests are being promoted foremost.

Release Date: 1/22/2026

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