Illinois real estate exam glossary
Multiple offers: compare the terms and protect the client’s decision
Two offers can have different strengths even when their prices are close. The seller decides among lawful options; the broker presents, explains and follows lawful instructions. Illinois adds a specific disclosure rule when the same designated agent prepares competing offers for multiple clients.
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The short answer
A multiple-offer situation involves competing proposals relevant to the same property at the same time. Illinois section 15-15 requires timely presentation of offers to and from a client, with its stated waiver language; exclusive agreements also have section 15-75 minimum services. Protect client confidentiality, compare the whole proposal and avoid implying that a request for revised offers is acceptance. When the same designated agent’s clients meet the contemporaneous-offer definition, give written disclosure and honor a request for referral to another designated agent.
Reviewed for October 2026. PSI lists proper handling of multiple offers and counteroffers at national V.C, within Contracts’ 19 of the 100 scored national broker questions. There is no separate published multiple-offer quota. These are original educational examples, not instructions to select an actual buyer or newly drafted contract forms.
Five steps for a clear offer comparison
- Identify the role and current status. Determine which party is the client, who has authority, what each proposal requires, and when it expires. A listing agreement, a purchase offer and an accepted purchase contract are different documents.
- Present as required. Apply section 15-15’s timely-presentation rule and its waiver language without ignoring section 15-75’s minimum services for exclusive agreements. Do not suppress a proposal because the agent expects rejection or prefers another outcome.
- Compare the actual package. Review price and credits, financing evidence, contingencies, appraisal-gap terms, deposits, closing and possession. Explain what is known and what remains conditional. Neither a preapproval letter, a larger deposit nor an as-is label guarantees performance.
- Protect duties and client choices. Keep the client’s confidential negotiating position private unless a proper exception applies. Check the specific contemporaneous-offer definition, provide the required written notice and honor referral requests. Apply lawful, nondiscriminatory criteria.
- Communicate the selected response and preserve its meaning. A seller may seek revised terms, counter or pursue another lawful option, subject to actual obligations. Avoid multiple uncontrolled powers of acceptance, document what was communicated, and use appropriate legal review for custom or disputed clauses.
| Category | Compare | Do not infer |
|---|---|---|
| Price and credits | Price less the specified concessions, then other actual costs | Headline price equals complete seller net |
| Financing | Actual conditions, funds and evidence | Preapproval guarantees funding or a label decides every risk |
| Appraisal | The contract remedy, gap amount and ability to supply cash | A buyer’s waiver rewrites the lender’s requirements |
| Inspection and condition | Actual rights, termination and repair language | As-is always means no inspection |
| Deposit | Amount, due date, escrow and contractual treatment | A larger deposit is automatically nonrefundable |
| Time and response | Expiration, conditions, closing, possession and required delivery | Fastest closing or a highest-and-best deadline automatically binds everyone |
| Agency and fair housing | Actual clients, conflicts and lawful criteria | Competition waives confidentiality or civil-rights duties |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| Multiple offers and defined contemporaneous offers | Multiple offers describe competition generally. Rule 1450.830 requires two or more clients of the same designated agent, the same parcel or unit, and known or reasonably anticipated consideration at the same time. | Different agents in one company do not automatically satisfy the same-agent element. The rule covers purchase or lease offers, not just sales. |
| Disclosure of competing representation and release of strategy | Section 15-15(b) and rule 1450.830 require written disclosure to the affected clients and referral upon request. | Disclosing the situation is not consent to reveal one client’s ceiling, motivation or terms to another. Another designated agent need not automatically mean another brokerage company. |
| A client confidence and a promise that all bids are secret | The statutory definition protects qualifying information received from a client. That is not a universal guarantee that every offer submitted to a seller remains undisclosed. | Check law, agreements, actual authority and the source of the information. NAR’s member guidance warns buyers against assuming offer terms are automatically confidential; it is not an Illinois statute binding every seller. |
| A request for highest and best and acceptance | A request to submit revised offers for later review ordinarily solicits proposals. It does not itself select a buyer or satisfy every condition of contract formation. | The actual wording and existing obligations control. Do not promise that the highest number must be accepted or that every earlier proposal has automatically expired. |
| An ordinary counter and a controlled multiple-counter process | An ordinary counter can give an offeree a power to accept. A specifically drafted process can reserve a further seller selection. | Sending an ordinary binding counter to two buyers can create conflicting claims. Do not assume the label multiple counter supplies a missing final-selection condition. |
| Lawful comparison and protected personal characteristics | Evaluate relevant terms and performance evidence without unlawful discrimination or a prohibited effect. | Buyer letters can expose protected information. That risk is not the same claim as a statute categorically banning every personal letter; follow a lawful handling policy and avoid discriminatory selection. |
Work through the facts
Compare the specified price and credit
Offer A is $510,000 with a $15,000 seller credit. Offer B is $503,000 with no credit. Compare only price less these stated credits.
- A: $510,000 - $15,000 = $495,000. B: $503,000 - $0 = $503,000.
- B is $8,000 higher on this limited measure despite the lower headline price.
- These subtotals do not deduct brokerage compensation, payoffs, taxes or other costs, or decide which full offer is best.
Answer: Offer B has the higher stipulated price-less-credit subtotal. Do not label it complete closing proceeds.
The same agent prepares both offers
One designated agent prepares offers for two buyer clients on the same condominium and has reason to know the owner will consider both that evening.
- All rule 1450.830 elements are supplied, including reason to know.
- Give written disclosure, physically or electronically, to those clients.
- If an affected client requests referral, refer the client to another designated agent and continue to safeguard information.
Answer: The agent cannot replace the notice with an oral assurance or refuse a referral merely to keep both clients.
Two agents in one company
Two separately designated agents in the same firm each prepare an offer for that agent’s own buyer client on the same home. No same-agent representation is supplied.
- Competition exists, but the stated facts do not meet the rule’s same-designated-agent element.
- Other confidentiality, supervision or agency obligations can still apply.
Answer: Do not automatically classify the situation as this defined contemporaneous-offer trigger merely because the firm is the same.
The client’s private ceiling
A buyer tells the buyer’s agent, in confidence, that the buyer can increase the offered price by $30,000. No permission, legal requirement or other confidentiality exception is supplied.
- The amount concerns the client’s negotiating position.
- The existence of other offers does not release that confidence.
Answer: Do not disclose the buyer-client’s ceiling to help a competing bidder or the seller negotiate against the client.
A genuine request for revised terms
The seller’s message says: submit any revised terms by 6 p.m.; the seller will review them afterward and has not accepted a proposal.
- The stated message invites revised offers for later consideration.
- It does not promise an award to the highest number or itself form a purchase contract.
- Existing offers retain the status their own documents and valid communications create.
Answer: Communicate the process truthfully without inventing competing bids or guaranteeing acceptance.
Two uncontrolled powers to accept
A seller gives two buyers separate ordinary counters, each expressly allowing buyer signature and the specified delivery to create a contract without another seller selection. Neither has been revoked or expired.
- Each buyer may have a power of acceptance under the supplied wording.
- If both respond effectively, conflicting contract claims can result.
- A controlled multiple-counter procedure needs actual appropriate language, not a protective title pasted onto an ordinary counter.
Answer: The seller needs prompt legal review of the actual documents and communications. The facts do not justify promising that the higher buyer automatically wins.
A waiver in the offer is not a lender waiver
A financed buyer waives a contract appraisal contingency. The seller assumes the lender must therefore advance funds on any price.
- A buyer-seller contract term does not itself rewrite a separate lender’s requirements.
- Examine the actual cash-gap promise and capacity rather than treating a waiver as proof of extra funds.
Answer: Compare the financing and contract risks separately. No actual loan approval is determined.
A personal letter is not a lawful selection rule
A letter describes the buyer’s religion and family. The seller asks to choose based on those characteristics rather than the transaction terms.
- Protected personal information is not a substitute for lawful selection criteria.
- Section 3-102 addresses discriminatory transactions, terms, offer transmission and negotiation, including prohibited effects.
- Follow lawful policy and instructions; do not carry out discriminatory directions.
Answer: Keep the offer comparison and decision process lawful. Do not misstate this as a separate universal statutory ban on every letter.
Mistakes to avoid
- The agent can present only the favorite offer. Apply timely presentation, the actual waiver language and exclusive-agreement minimums.
- A conflict notice releases both buyers’ ceilings. Written conflict disclosure and confidentiality are different duties.
- A multiple-counter heading prevents every double-contract claim. The operative conditions and effective communications control.
- A price-less-credit subtotal is the complete net. Identify every included and excluded cost before describing proceeds.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. What is the general section 15-15 presentation rule?
- Timely present offers to and from the client, with the section’s waiver language and applicable minimum-service requirements
- Wait until closing to present all offers
- Reject offers that reduce the agent’s preferred outcome
- Present only the offer the agent expects the client to like
Show answer and explanation
Answer: A. Timely present offers to and from the client, with the section’s waiver language and applicable minimum-service requirements
The client’s interests and lawful choices control. Section 15-15 has waiver language, but exclusive agreements also have section 15-75 minimum services. The agent cannot invent a waiver from convenience, predicted rejection or self-interest.
2. What does section 15-75 require for exclusive brokerage agreements?
- A written agreement specifying the listed minimum offer, assistance and question-answering services
- Any services the agent chooses, with no statutory minimum
- Only posting a listing
- Only answering a question after closing
Show answer and explanation
Answer: A. A written agreement specifying the listed minimum offer, assistance and question-answering services
The section states minimum services, including accepting and presenting offers/counters and the specified assistance and answers. Do not treat general waiver language as a blanket way around those exclusive-agreement requirements.
3. Must the seller always select the highest price?
- Yes, if a buyer labels an offer highest and best
- No; consider lawful full terms and existing obligations rather than a highest-number rule
- Only if a broker prefers that buyer
- Yes, every multiple-offer situation is a mandatory auction
Show answer and explanation
Answer: B. No; consider lawful full terms and existing obligations rather than a highest-number rule
Competition alone does not create an automatic highest-price contract. Credits, conditions, timing, performance evidence, law and existing obligations matter; a label or broker preference is not a selection rule.
4. Which facts meet rule 1450.830’s contemporaneous-offer definition?
- The same agent works on two different properties in different months
- Two names appear on one seller’s mailing list
- Two or more clients of the same designated agent offer on the same parcel or unit, with known or reasonably anticipated consideration at the same time
- Two agents anywhere in Illinois make unrelated offers
Show answer and explanation
Answer: C. Two or more clients of the same designated agent offer on the same parcel or unit, with known or reasonably anticipated consideration at the same time
The rule specifies the same agent, multiple clients, same property and the knowledge/reason-to-know timing element. The other choices omit essential parts of the definition. It applies to purchase or lease offers.
5. Separate designated agents in one firm each represent one competing buyer. What does the firm’s common name establish by itself?
- The precise same-agent definition automatically applies
- It does not alone establish rule 1450.830’s same-designated-agent element
- All confidential information may be shared
- Every agent is automatically a dual agent
Show answer and explanation
Answer: B. It does not alone establish rule 1450.830’s same-designated-agent element
Same firm is not automatically same designated agent. Other duties can still apply, but the common name alone does not prove this specific trigger, dual agency or permission to share client confidences.
6. The defined contemporaneous-offer situation exists and an affected client requests referral. What is required?
- Automatic cancellation of every offer
- Written disclosure to affected clients and referral to another designated agent upon that request
- Only oral notice and refusal of referral
- Disclosure of the other client’s ceiling instead
Show answer and explanation
Answer: B. Written disclosure to affected clients and referral to another designated agent upon that request
The statute and rule require written notice and requested referral. They do not authorize substituting another client’s strategy, refusing the request or automatically canceling all proposals.
7. A buyer-client’s confidential maximum price is supplied with no exception permitting disclosure. What is correct?
- Competition automatically releases it
- The seller’s curiosity makes it public
- Safeguard it; the conflict disclosure is not a release of that confidence
- The broker must tell every bidder
Show answer and explanation
Answer: C. Safeguard it; the conflict disclosure is not a release of that confidence
Negotiating position is within the statutory confidential-information definition. A competing offer, conflict notice or request from another party does not itself supply consent or another applicable exception.
8. Which confidentiality assumption is sound for a buyer submitting an offer?
- Every submitted offer is automatically secret under all laws
- Check the actual protections; client confidentiality does not guarantee every offer submitted to a seller will remain undisclosed
- Any offer can always be published without restriction
- Every seller is bound by NAR membership rules
Show answer and explanation
Answer: B. Check the actual protections; client confidentiality does not guarantee every offer submitted to a seller will remain undisclosed
Neither universal secrecy nor unlimited disclosure follows. Illinois duties, applicable law, actual agreements and authority matter. NAR’s guidance cautions buyers about disclosure possibilities; it does not legislate duties for every seller.
9. A message expressly invites revised offers for later review and says none is accepted. What is it on those facts?
- A deed
- A solicitation of revised proposals, not itself the stated acceptance
- A guarantee to accept the highest price
- Automatic acceptance of the first response
Show answer and explanation
Answer: B. A solicitation of revised proposals, not itself the stated acceptance
The message’s supplied content seeks proposals for later review. It does not itself convey title, choose a buyer or guarantee a particular winner. Actual contract formation still depends on the applicable terms and effective response.
10. Why can ordinary counters to two buyers create risk?
- Both may have powers to accept before a further seller selection
- Every appraisal doubles
- The listing necessarily expires
- All prices automatically become identical
Show answer and explanation
Answer: A. Both may have powers to accept before a further seller selection
If each counter permits effective acceptance without another seller choice, competing contract claims can result. A special process needs actual controlling language; the unrelated effects in the other choices do not follow.
11. Compare only price less stated seller credit. A offers $430,000 with a $20,000 credit; B offers $425,000 with a $5,000 credit. What is correct?
- B’s total actual closing proceeds must be $420,000
- A is higher by $5,000 on this measure
- The subtotals are identical
- B’s $420,000 subtotal is $10,000 above A’s $410,000 subtotal
Show answer and explanation
Answer: D. B’s $420,000 subtotal is $10,000 above A’s $410,000 subtotal
A: $430,000-$20,000=$410,000. B: $425,000-$5,000=$420,000, a $10,000 difference. This limited subtotal is not complete net proceeds or a decision about all other terms.
12. Which statement about personal buyer letters is accurate?
- The broker should choose the buyer’s religion
- Protected characteristics must not drive unlawful selection; a letter risk is not proof of a universal Illinois ban on every letter
- Any letter overrides fair housing law
- Every financial term is illegal to compare
Show answer and explanation
Answer: B. Protected characteristics must not drive unlawful selection; a letter risk is not proof of a universal Illinois ban on every letter
Section 3-102 governs discriminatory conduct and criteria. A lawful handling policy should avoid using protected information. That does not create the claimed universal letter prohibition or outlaw every lawful financial comparison.
13. Under section 15-75(2), does the specified minimum assistance end merely because a purchase agreement is signed while contingencies remain open?
- Yes, signature alone ends every brokerage duty
- It always ends before any offer is presented
- No; the stated provision extends until signing and satisfaction or waiver of all contingencies
- Yes, unless the broker prefers otherwise
Show answer and explanation
Answer: C. No; the stated provision extends until signing and satisfaction or waiver of all contingencies
The provision uses both signing and satisfaction or waiver of all contingencies. Signature alone is not its whole condition. These are minimum services; the provision does not declare that every other duty automatically ends when those events occur.
Common questions
What is a multiple-offer situation?
Competing proposals for the same property that remain relevant at the same time. Each has its own terms and status. Competition does not itself create a special mandatory auction, a contract or permission for an agent to choose instead of the client.
Must every offer be presented in Illinois?
Section 15-15 requires timely presentation of offers to and from the client, unless the client has waived that duty. Section 15-75 separately specifies minimum services for exclusive agreements. Apply both and the actual agreement; do not assume a broad waiver eliminates required minimum services or let the agent suppress an offer for self-interest. The minimum assistance provision uses both a signed agreement and all contingencies satisfied or waived; it is a minimum, not a declaration that every other obligation then disappears.
What makes offers contemporaneous under the Illinois rule?
Two or more clients represented by the same designated agent, the same parcel or unit, and the agent’s knowledge or reason to know the owner or representative will consider the offers together. It covers purchase and lease offers. Same company, same month or unrelated properties alone is insufficient.
What must the same designated agent disclose?
Provide written disclosure, physically or electronically, to the affected clients and refer a client requesting referral to another designated agent. That disclosure does not permit revealing either client’s confidential strategy. The referral requirement does not itself say the client must move to a different company.
Is the highest offer always the best?
Not automatically. Compare the entire lawful package, including credits, conditions, financing evidence, appraisal-gap capacity, timing and possession. A seller’s existing obligations and civil-rights duties still matter. No single label, preapproval, deposit or price guarantees a closing.
Are other offers and their terms confidential?
Do not assume one universal answer. A broker must protect the client’s qualifying confidential information, and law or an agreement can restrict disclosure. That is different from assuring every buyer that the seller will keep the submitted proposal secret. Discuss actual protections before relying on them, and do not mistake permission to mention competition for authority to release every detail.
Can the broker invent competition to encourage a better offer?
No. Honesty and client duties are not suspended by negotiation. Do not invent the existence, number, amount or status of offers. A client’s instruction does not authorize unlawful or misleading conduct.
What does highest and best mean?
It generally asks buyers to submit revised strongest terms under the stated procedure. It does not itself guarantee selection, make a particular contract or establish every earlier offer’s expiration. Read the request, existing offers and actual communications rather than attach automatic effects to the label.
Can a seller counter more than one buyer?
The documents and process matter. Ordinary counters can give more than one person a power to accept and create conflicting claims. A specifically drafted multiple-counter process may reserve final seller selection. Do not assume a title supplies that condition or draft custom binding language without appropriate authority and legal review.
How should an escalation clause be handled?
Read the actual base price, increment, cap, qualifying competing-offer definition and proof conditions, plus financing and confidentiality consequences. There is no single clause whose effect can be assumed from the word escalation. A cap is not a guarantee of winning or permission to fabricate a rival bid.
Does an appraisal waiver guarantee financing?
No. A buyer-seller contract provision does not itself rewrite the lender’s requirements. Confirm what the actual waiver or cash-gap provision says and what evidence supports performance. A financing label alone is not a guarantee or permission for unlawful discrimination.
Are buyer letters illegal?
The cited Illinois civil-rights provision prohibits discriminatory conduct and criteria; it is not a categorical ban on every personal letter. Letters can reveal protected characteristics and create a serious decision-process risk. Use a lawful policy and relevant transaction criteria rather than selecting by religion, familial status or other protected information.
When does a response become a contract?
The actual offer, response, authority, writing and required communication matter. A request for proposals is not automatically acceptance, and a changed response can raise counteroffer issues. The published Finnin opinion illustrates strict acceptance in a stock transaction; it is not a ruling that every property response or polite request has the same effect. Use the full contract lesson for the distinction and legal review for an actual dispute.
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Official sources and scope
Illinois statutes and the adopted contemporaneous-offer rule supply the client duties, minimum services, defined trigger and civil-rights requirements. NAR’s member guidance provides negotiation context, not legislation binding every seller. Finnin supplies a limited published acceptance illustration from its actual stock transaction; the land-writing statute is separate. The PSI outline supplies exam placement. The comparison sheet and exercises are original and do not select a real buyer or create approved contract language.
- 225 ILCS 454/1-10: client, customer and confidential information
- 225 ILCS 454/15-15: client duties
- 68 Ill. Adm. Code 1450.830: defined contemporaneous offers
- 225 ILCS 454/15-75: exclusive-agreement minimum services
- 68 Ill. Adm. Code 1450.800: confidentiality safeguards
- 775 ILCS 5/3-102: covered conduct, advertising and discriminatory effects
- Finnin v. Bob Lindsay: strict acceptance despite changes called minor
- 740 ILCS 80/2: land agreements and required signed evidence
- NAR 2026 multiple-offer guidance: client decisions and limits of disclosure assumptions
- PSI June 24, 2026: National V.C multiple offers and counteroffers
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.