- Official section
- National V.C: Multiple offers and counteroffers
- Broker weight
- 19% of the national broker portion
- Expected scored items
- Contracts account for about 17 of 100 items
Illinois exam glossary
Multiple offers
Multiple offers are not a highest-number contest. The seller chooses among complete packages, and the licensee protects that choice by presenting everything promptly, comparing terms without hidden assumptions, protecting confidential information, and documenting a consistent process. When one agent represents competing buyers, Illinois adds a specific written-disclosure duty.
Last updated: August 1, 2026
What does this exam area cover?
Short answer: In a multiple-offer situation, an Illinois licensee timely presents every offer unless the client waived presentation, protects confidential negotiating information, and lets the seller decide. The seller may compare price, expected net, financing, contingencies, appraisal risk, earnest money, closing, possession, and likelihood of performance. When the same designated agent prepares contemporaneous offers for competing clients on the same property, written disclosure to each client is required and any client requesting referral must be referred to another designated agent.
This guide follows the PSI Illinois Candidate Information Booklet effective June 24, 2026, Real Estate License Act sections 1-10, 15-15, and 15-35, Administrative Code section 1450.830, Illinois Human Rights Act section 3-102, current IDFPR post-license curriculum, Illinois contract decisions, and 740 ILCS 80/2, all checked through August 1, 2026. Brokerage policy, MLS rules, attorney forms, client instructions, existing contracts, short-sale approval, probate authority, relocation programs, and government loan rules can alter a live process.
What is on the official outline?
- Topic
- Confirm agency
- What to know
- seller client, buyer client, customer, designated agent, dual agent, sponsoring broker, written agreement, disclosure, and authority
- Best exam move
- Duties and confidential information depend on whom the licensee represents.
- Topic
- Present every offer
- What to know
- 225 ILCS 454/15-15, timely, all offers, to client, from client, waiver, late offer, verbal information, and written record
- Best exam move
- Do not screen out a proposal merely because the agent predicts rejection.
- Topic
- Identify any waiver
- What to know
- client instruction, presentation duty, written record, scope, duration, revocation, offer type, lawfulness, and sponsoring broker
- Best exam move
- A waiver must come from the client and should be clear; the agent does not create it by convenience.
- Topic
- Build a term matrix
- What to know
- price, net proceeds, earnest money, financing, down payment, proof of funds, appraisal, inspection, title, closing, and possession
- Best exam move
- Compare every material term in parallel rather than ranking by headline price.
- Topic
- Calculate probable net
- What to know
- price, seller credit, repair cap, rate buydown, home warranty, tax proration, transfer cost, title cost, commission, and concessions
- Best exam move
- A higher gross price can produce a lower probable seller net.
- Topic
- Evaluate financing
- What to know
- cash, conventional, FHA, VA, loan amount, down payment, preapproval, prequalification, lender, rate lock, and funding risk
- Best exam move
- Financing strength changes performance risk but does not guarantee closing.
- Topic
- Evaluate appraisal risk
- What to know
- appraisal contingency, appraisal gap, cash cap, loan-to-value, price reduction, termination, waiver, proof of funds, and lender requirement
- Best exam move
- A waived contract contingency does not force a lender to ignore its appraisal or underwriting rules.
- Topic
- Evaluate inspection risk
- What to know
- inspection period, as-is, repair request, credit, termination, material defect, waiver, health and safety, and property disclosure
- Best exam move
- An as-is offer can retain inspection or termination rights depending on the actual clause.
- Topic
- Evaluate timing
- What to know
- offer expiration, loan approval, attorney review, inspection, closing, possession, rent-back, sale contingency, and seller move
- Best exam move
- The most useful closing date can outweigh a modest price difference.
- Topic
- Evaluate earnest money
- What to know
- amount, due date, holder, escrow, liquidated damages, financing, refundability, default, and no guarantee
- Best exam move
- A larger deposit can signal capacity but is not automatically nonrefundable or a promise of performance.
- Topic
- Protect confidentiality
- What to know
- 225 ILCS 454/1-10, negotiating position, motivation, maximum price, minimum price, urgency, terms, written instruction, harm, and permission
- Best exam move
- Do not reveal a client's bargaining ceiling, floor, motivation, or other protected strategy without authorization.
- Topic
- Separate existence and terms
- What to know
- other offer exists, number of offers, price, contingencies, buyer identity, proof, seller instruction, confidentiality, and truthful statement
- Best exam move
- Permission to mention competition does not automatically permit disclosure of a competitor's detailed proposal.
- Topic
- Define contemporaneous offers
- What to know
- 68 Ill. Adm. Code 1450.830, same designated agent, two or more clients, same parcel or unit, knows, reason to know, and same consideration time
- Best exam move
- Apply the rule only when every definition component is present.
- Topic
- Give written disclosure
- What to know
- all affected clients, same agent, contemporaneous offers, written notice, competing representation, timing, records, and no terms disclosed
- Best exam move
- Disclose the representation conflict without revealing either client's confidential strategy.
- Topic
- Honor referral requests
- What to know
- client request, another designated agent, sponsoring broker, transfer, confidentiality, informed choice, timing, and documentation
- Best exam move
- Section 15-15(b) requires referral when an affected client asks for it.
- Topic
- Request highest and best
- What to know
- seller instruction, selected buyers, all buyers, deadline, final terms, no guarantee, prior offer, revocation, and timely delivery
- Best exam move
- A request for revised terms is not itself acceptance and should use a clear, consistent process.
- Topic
- Handle escalation
- What to know
- increment, cap, bona fide competing offer, proof, redaction, confidentiality, financing, appraisal, certainty, and attorney drafting
- Best exam move
- An escalation clause creates more than a math problem; it needs enforceable terms and authorized proof handling.
- Topic
- Avoid double contracts
- What to know
- accept one, backup contract, multiple counteroffer, ordinary counter, revocation, final seller selection, signature, and effective delivery
- Best exam move
- Do not give multiple buyers an uncontrolled power to bind the seller to the same property.
- Topic
- Apply fair housing
- What to know
- protected class, neutral criteria, consistent process, buyer letter, photograph, family, religion, disability, national origin, and documentation
- Best exam move
- Compare lawful transaction terms, not protected personal characteristics.
- Topic
- Document the decision
- What to know
- offer log, receipt time, presentation time, seller instruction, comparison sheet, confidentiality, acceptance, rejection, counter, backup, and retention
- Best exam move
- A clear record shows what was received, presented, directed, and communicated without inventing the seller's reasoning.
Which distinctions produce the most mistakes?
- Terms
- Multiple offers vs. contemporaneous offers
- Difference
- Multiple offers are competing proposals generally. Contemporaneous offers under Illinois rule involve the same designated agent representing two or more clients on the same property at the same consideration time.
- Question cue
- Market condition versus defined agency conflict.
- Terms
- Highest price vs. best offer
- Difference
- Highest price is one number. Best offer is the seller's lawful assessment of net, risk, timing, and all terms.
- Question cue
- Gross amount versus complete package.
- Terms
- Price vs. seller net
- Difference
- Price is the stated purchase amount. Seller net accounts for credits, costs, repairs, and other financial terms.
- Question cue
- Top line versus expected proceeds.
- Terms
- Prequalification vs. preapproval
- Difference
- Prequalification is generally preliminary. Preapproval typically reflects a more developed lender review but remains conditional.
- Question cue
- Initial estimate versus stronger conditional review.
- Terms
- Cash offer vs. financed offer
- Difference
- Cash avoids mortgage funding risk but still needs proof and closing performance. Financing can offer stronger economics but adds lender conditions.
- Question cue
- No loan contingency versus loan-dependent funds.
- Terms
- Appraisal waiver vs. appraisal-gap promise
- Difference
- A waiver removes or limits a contract remedy. A gap promise specifies additional cash if appraised value is below price.
- Question cue
- No contingency remedy versus defined cash bridge.
- Terms
- As-is vs. no inspection
- Difference
- As-is addresses seller repair obligations. The contract may still permit inspection and termination unless those rights are separately changed.
- Question cue
- No repair promise versus no inspection right.
- Terms
- Offer disclosure vs. offer-term disclosure
- Difference
- Disclosing that competition exists is different from revealing another buyer's price, cap, financing, or contingencies.
- Question cue
- Existence versus substance.
- Terms
- Highest and best vs. counteroffer
- Difference
- A highest-and-best request invites revised offers. A counteroffer gives a particular offeree power to accept specified terms.
- Question cue
- Solicitation versus new offer.
- Terms
- Multiple counteroffer vs. ordinary counteroffer
- Difference
- A properly drafted multiple counter can require seller reselection after buyer responses. An ordinary counter can bind upon the buyer's acceptance.
- Question cue
- Final seller confirmation versus immediate power.
- Terms
- Primary contract vs. backup contract
- Difference
- The primary contract controls first. A backup is conditional on termination or failure of the primary agreement under its terms.
- Question cue
- First position versus contingent second position.
- Terms
- Client choice vs. broker recommendation
- Difference
- The broker analyzes and advises within scope. The seller client makes the offer decision.
- Question cue
- Professional input versus owner authority.
The O-F-F-E-R-S matrix
- Organize every proposal: log receipt, deadline, current status, agency, signed documents, financing evidence, and presentation time.
- Financial comparison: calculate price, likely net, credits, repairs, financing, appraisal exposure, earnest money, and proof of funds.
- Fulfillment risk: compare contingencies, underwriting, inspection, title, sale-of-home condition, closing, possession, and buyer capacity without guarantees.
- Ethical and legal screen: protect confidential information, apply fair housing, disclose contemporaneous representation, and honor a referral request.
- Response strategy: follow the seller's instructions to accept, reject, counter, seek highest and best, negotiate multiple counters, or establish a backup.
- Secure the record: document presentation and direction, preserve every version, verify final acceptance, and refer custom clauses or disputes to counsel.
- Category
- Economics
- Questions
- Price, net, credits, repair cap
- Do not assume
- Highest price equals highest net
- Category
- Financing
- Questions
- Cash, loan, down payment, proof
- Do not assume
- Preapproval guarantees funding
- Category
- Appraisal
- Questions
- Contingency, gap, cash cap
- Do not assume
- Waiver eliminates lender appraisal
- Category
- Inspection
- Questions
- Period, remedy, termination, as-is
- Do not assume
- As-is means no inspection
- Category
- Timing
- Questions
- Closing, possession, sale condition
- Do not assume
- Fastest is always best
- Category
- Legal process
- Questions
- Confidentiality, disclosure, fairness
- Do not assume
- Competition permits sharing terms
How do the rules work in scenarios?
Higher price, lower net
Scenario: Offer A is $510,000 with a $15,000 seller credit. Offer B is $503,000 with no credit. All other financial terms are equal.
- Offer A's simplified price less credit is $495,000.
- Offer B's simplified amount is $503,000.
- Other costs, risk, and terms still require comparison.
Answer: Offer B has the higher simplified seller net despite the lower headline price.
Same agent, competing clients
Scenario: One designated agent prepares offers for two buyer clients on the same condominium and knows the seller will consider both that evening.
- The facts meet the administrative definition of contemporaneous offers.
- The agent must provide written disclosure to both affected clients.
- A client requesting referral must be referred to another designated agent.
Answer: Give the required written disclosure, protect both clients' confidential information, and honor any referral request.
Price ceiling is confidential
Scenario: A buyer privately tells the buyer's agent that the buyer can go $30,000 higher. The listing agent asks for the buyer's maximum.
- The maximum directly reveals negotiating position.
- The information came from the client in the agency relationship.
- No client permission or legal requirement to disclose is stated.
Answer: The buyer's agent must not reveal the confidential ceiling.
Appraisal waiver and lender
Scenario: A financed buyer waives the contract's appraisal contingency, and the seller assumes the lender must fund the full price regardless of value.
- The waiver changes the buyer's contract remedy against the seller.
- It does not rewrite the lender's underwriting or loan-to-value rules.
- The offer should show how the buyer will cover any cash gap.
Answer: Treat lender approval and the buyer's appraisal-gap capacity as separate risks.
Highest-and-best request
Scenario: The seller instructs the listing agent to ask all four buyers for final terms by 6:00 p.m. and not disclose competing prices.
- The licensee can communicate the seller's neutral process accurately.
- No buyer is promised acceptance merely by responding.
- Competing confidential terms remain protected.
Answer: Send a consistent request with the deadline and seller-approved procedure, without disclosing or inventing terms.
Unsafe ordinary counters
Scenario: A seller signs ordinary counteroffers to Buyer A and Buyer B, each stating that buyer signature and delivery create a contract.
- Both buyers can appear to hold immediate powers of acceptance.
- If both accept before revocation, the seller can face conflicting claims.
- A properly drafted multiple-counter process would require final seller selection.
Answer: The seller has created double-contract risk and needs immediate legal guidance.
Buyer letter creates fair-housing risk
Scenario: A buyer submits family photographs and a letter describing religion, children, and desired proximity to a house of worship.
- The content exposes protected-class information unrelated to transaction strength.
- Forwarding it can invite an unlawful selection basis.
- Brokerage policy and counsel should guide neutral handling.
Answer: Keep the comparison focused on lawful property and financial terms rather than protected personal characteristics.
What are the common exam traps?
- Trap
- Presenting only the strongest-looking offer
- Correction
- Timely present all offers unless the client waived that duty.
- Trap
- Choosing for the seller
- Correction
- Analyze and advise; the client makes the decision.
- Trap
- Ranking by price alone
- Correction
- Compare likely net, financing, contingencies, timing, and performance risk.
- Trap
- Calling preapproval guaranteed funding
- Correction
- Lender review remains subject to conditions, property, documents, and underwriting.
- Trap
- Calling a large deposit nonrefundable
- Correction
- Refundability and remedies depend on the contract and law.
- Trap
- Calling as-is no inspection
- Correction
- Read inspection, termination, disclosure, and repair clauses separately.
- Trap
- Treating appraisal waiver as lender waiver
- Correction
- The buyer-seller contract does not control the lender's underwriting.
- Trap
- Inventing another offer
- Correction
- Never fabricate competition or misstate the number or status of proposals.
- Trap
- Revealing a competing price without authority
- Correction
- Protect confidential terms and follow lawful client instructions.
- Trap
- Sharing one buyer client's ceiling with another
- Correction
- Contemporaneous-offer disclosure does not waive confidentiality.
- Trap
- Missing contemporaneous-offer disclosure
- Correction
- Give written disclosure when the same designated agent represents affected competing clients under the rule.
- Trap
- Refusing an affected client's referral request
- Correction
- Section 15-15(b) requires referral to another designated agent upon request.
- Trap
- Calling highest and best an acceptance
- Correction
- It invites revised proposals; the seller still must accept one effectively.
- Trap
- Sending ordinary counters to several buyers
- Correction
- Use proper multiple-counter language to avoid conflicting acceptance powers.
- Trap
- Using buyer identity as a selection criterion
- Correction
- Apply fair housing and compare lawful transaction terms consistently.
Can you answer these original practice questions?
These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.
1. What must an Illinois licensee generally do with offers?
- Timely present all offers unless the client waived the duty
- Present only the highest
- Reject financed offers
- Wait until closing
Show answer and explanation
Answer: Timely present all offers unless the client waived the duty
The client, not the licensee, decides among the proposals.
2. Does the highest price always make the best offer?
- No
- Yes
- Only for cash
- Only in Chicago
Show answer and explanation
Answer: No
Credits, financing, contingencies, timing, and performance risk can change value.
3. What does confidential information include?
- A client's negotiating position
- Every known material physical defect
- Recorded property taxes
- Public zoning text
Show answer and explanation
Answer: A client's negotiating position
Permission, legal requirement, or a proper public source can change confidentiality status.
4. When are offers contemporaneous under Illinois rule?
- The same designated agent represents competing clients on the same property and knows they will be considered together
- Any two offers in Illinois
- Any offer made in the same month
- Only cash offers
Show answer and explanation
Answer: The same designated agent represents competing clients on the same property and knows they will be considered together
The rule also applies when the agent has reason to know of simultaneous consideration.
5. What must the designated agent give affected contemporaneous-offer clients?
- Written disclosure
- The other client's maximum price
- A guaranteed acceptance
- The seller's confidential minimum
Show answer and explanation
Answer: Written disclosure
The agent continues to protect each client's confidential information.
6. What if an affected client requests another agent?
- Refer the client to another designated agent
- Refuse
- Disclose the other buyer's terms
- Cancel the listing
Show answer and explanation
Answer: Refer the client to another designated agent
That referral duty appears in section 15-15(b).
7. What is a highest-and-best request?
- An invitation for buyers to submit strongest final terms
- Automatic acceptance of the highest price
- A deed
- A title commitment
Show answer and explanation
Answer: An invitation for buyers to submit strongest final terms
The seller still must accept an offer according to contract law.
8. Why can escalation clauses require legal care?
- They raise certainty, proof, confidentiality, appraisal, and financing issues
- They always transfer title
- They require no cap
- They eliminate fair housing law
Show answer and explanation
Answer: They raise certainty, proof, confidentiality, appraisal, and financing issues
Use approved language and attorney guidance.
9. What risk comes from ordinary counters to two buyers?
- Both buyers may appear able to bind the seller
- Neither can read the price
- The listing expires automatically
- The appraisal doubles
Show answer and explanation
Answer: Both buyers may appear able to bind the seller
Proper multiple-counter forms preserve final seller selection.
10. Which comparison basis best supports fair housing compliance?
- Neutral property, financial, and performance terms
- Buyer religion
- Family photographs
- National origin
Show answer and explanation
Answer: Neutral property, financial, and performance terms
Protected characteristics cannot lawfully drive offer selection.
How should you study this area?
- Session
- Session 1
- Focus
- Build an offer matrix
- Proof you are ready
- Compare 25 price, credit, net, earnest-money, financing, appraisal, inspection, title, closing, and possession packages.
- Session
- Session 2
- Focus
- Apply Illinois duties
- Proof you are ready
- Solve 30 presentation, waiver, client direction, confidentiality, negotiating-position, permission, and record-retention scenarios.
- Session
- Session 3
- Focus
- Master contemporaneous offers
- Proof you are ready
- Classify 25 same-agent, different-agent, same-property, different-property, same-time, written-disclosure, and referral facts.
- Session
- Session 4
- Focus
- Compare risk
- Proof you are ready
- Audit 30 preapproval, cash, down-payment, appraisal-gap, waiver, as-is, inspection, sale-contingency, and closing-capacity facts.
- Session
- Session 5
- Focus
- Control negotiation
- Proof you are ready
- Review highest-and-best, escalation, multiple-counter, ordinary-counter, backup, revocation, expiration, acceptance, and double-contract scenarios.
- Session
- Session 6
- Focus
- Run O-F-F-E-R-S
- Proof you are ready
- Audit two Illinois seller files, score at least 90 percent, and defend each recommendation with lawful transaction terms only.
Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.
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Questions students ask about Multiple Offers: Illinois Real Estate Exam Guide
What is a multiple-offer situation?
A multiple-offer situation exists when a seller receives two or more purchase proposals that remain relevant at the same time. It does not create a special automatic contract rule. Each offer retains its own terms, deadline, and status, while the seller decides whether to accept one, reject, counter, request revised offers, or take no action, subject to existing obligations and law.
Must an Illinois licensee present every offer?
A licensee representing a client must timely present all offers to and from the client unless the client waived that duty under 225 ILCS 454/15-15. A listing agent should not suppress an offer because another appears stronger, because the agent prefers its compensation arrangement, or because the agent thinks the seller will reject it. The client makes the decision.
Does the highest offer always win?
No. A seller can lawfully prefer a lower price with stronger financing, fewer contingencies, a larger earnest-money deposit, a better appraisal-gap plan, a more useful closing date, or less performance risk. The broker should compare price, probable net, certainty, timing, and legal obligations without guaranteeing that any buyer will close.
Can a seller reveal that other offers exist?
The listing licensee follows the seller-client's lawful instructions and protects confidential information. The existence of competition and the details of competing proposals are not interchangeable. Price, terms, motivation, and negotiating position can be confidential. Do not disclose another buyer's terms or use invented competition without authorization and a proper legal basis.
What are contemporaneous offers under Illinois law?
Illinois Administrative Code section 1450.830 defines contemporaneous offers for this purpose as offers to purchase or lease the same parcel or unit for two or more clients represented by the same designated agent when that agent knows or has reason to know the offers will be considered at the same time. This is narrower than every situation involving multiple buyers.
What disclosure is required for contemporaneous buyer offers?
Under section 15-15(b), the designated agent must give written disclosure to all clients for whom the agent is preparing or making contemporaneous offers or contracts for the same property. If a client requests referral, the licensee must refer that client to another designated agent. Disclosure of the conflict does not authorize sharing either client's confidential strategy or terms.
What is a highest-and-best request?
A highest-and-best request invites selected or all buyers to submit their strongest final terms by a stated deadline. It is usually a negotiation procedure, not the seller's acceptance of any offer. The request should state timing, delivery, whether prior offers remain open, and that the seller retains the choices allowed by law and the documents.
What is an escalation clause?
An escalation clause proposes increasing the buyer's price above a competing bona fide offer, usually to a stated increment and cap. It creates drafting, proof, confidentiality, appraisal, financing, and certainty issues. A licensee should use approved language and attorney guidance rather than invent a clause or reveal a competing offer beyond authority.
Can a seller counter more than one buyer?
A seller may negotiate with multiple buyers, but ordinary counteroffers capable of immediate acceptance can create conflicting contract claims. A true multiple-counter form can require a buyer response followed by the seller's final selection and signature before a contract forms. The precise form controls, so use an approved form and legal advice rather than casual identical counters.
How does fair housing apply to multiple offers?
Offer procedures and selections cannot discriminate based on protected characteristics. Use lawful, property-related criteria and consistent documentation. Do not convey buyer letters, photographs, family details, religious references, disability information, or other personal content that invites a protected-class decision. A neutral financial comparison is safer and more useful.
Are these official PSI questions or legal advice?
No. The questions are original. Illinois statutes, rules, IDFPR curriculum, and Illinois court materials were checked through August 1, 2026. This is exam education, not legal advice or an offer-selection recommendation. A live situation requires the actual contracts, agency relationships, client instructions, confidentiality analysis, financing evidence, and appropriate legal review.
Primary sources
- PSI Illinois Candidate Information Booklet effective June 24, 2026
- Illinois General Assembly, 225 ILCS 454/15-15 client duties and contemporaneous offers
- Illinois General Assembly, 225 ILCS 454/1-10 confidential-information definition
- Illinois General Assembly, 225 ILCS 454/15-35 agency and compensation disclosures
- Illinois Administrative Code, 68 Ill. Adm. Code 1450.830 contemporaneous-offer definition
- Illinois General Assembly, 775 ILCS 5/3-102 civil-rights violations in real estate transactions
- Illinois Department of Financial and Professional Regulation, current 45-hour broker post-license curriculum including multiple offers
- Illinois Courts, official decision on objective manifestation of contract assent
- Illinois General Assembly, 740 ILCS 80/2 signed writing for land contracts
The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.
Editorial status
Checked against primary sources
The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.