Can a Realtor Legally Lie About Other Offers in NYC?
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Only if the seller says yes, and only if you ask. Under NAR’s Code of Ethics, Standard of Practice 1-15 requires a listing agent to disclose offers to a buyer or a cooperating broker, but only with the seller’s approval. Nothing in New York law stops an agent from exaggerating interest to speed up a sale.
We represent NYC buyers, and this question comes up in almost every competitive listing. The honest answer disappoints people: there’s no law making a realtor tell the truth about this.
Only if the seller says yes, and only if you ask. That’s genuinely the whole rule.
Why would a realtor lie about having other offers?
A faster sale and a bigger number are the blunt incentives for them, too. A listing agent who convinces you that other buyers are circling gets you to move fast and bid higher. That benefits the seller, and through commission, the agent as well. Our pillar guide to negotiating in NYC covers how this pressure fits into the broader negotiation.
Sometimes it’s true. A packed open house genuinely does produce multiple offers. Other times, a quiet showing gets talked up into a bidding war that never existed.
Is it legal for a realtor to lie about offers?
Unethical if they’re NAR members, not illegal either way, sums up the actual legal picture. New York doesn’t have a specific law barring a real estate agent from exaggerating buyer interest in a listing. Licensees are broadly required to act in good faith, but that standard is difficult to enforce around something as vague as “interest level.”
An agent who’s a NAR member faces a separate, stricter standard through the Realtor Code of Ethics, even without a specific law behind it. That’s distinct from the duty an agent owes the seller directly: several state real estate commissions, Arkansas’s among them, require every offer to actually reach the seller, which is a different question from what a buyer gets told about other offers on the table.
What the NAR Code of Ethics says about disclosing offers
Ask, and get seller approval, and they have to answer honestly. That’s what Standard of Practice 1-15 actually requires. Realtors, when asked by a buyer or a cooperating broker, must disclose the existence of offers on a property. That’s only true with the seller’s approval already granted.
| Situation | Must the agent disclose? |
|---|---|
| Seller authorizes disclosure, buyer asks | Yes, and must answer honestly |
| Seller authorizes disclosure, buyer doesn’t ask | No obligation to volunteer it |
| Seller doesn’t authorize disclosure | No, regardless of who asks |
If a seller hasn’t authorized disclosure, the agent doesn’t have to tell you anything, true or otherwise, about competing offers.
How to protect yourself from a bidding war bluff
Don’t letting anyone learn how attached you are is the single best defense. A listing agent who senses a real emotional attachment has more room to talk up competing interests, since they know you’re less likely to walk away. Keep your reactions measured, even when you love the place.
Price from real comps, not from claimed competition. Our reading of your local market guide covers days on market and price history. That data tells you far more than a broker’s claim about other buyers. If you’re genuinely in a bidding war, the signs, like a compressed offer deadline across multiple agents, are usually visible on their own.
What happens if you catch a realtor lying
A complaint that starts with their local board, not the police, is the real recourse. If an agent is a NAR member and clearly violated the Code of Ethics, a complaint to their local Realtor association can trigger real consequences. Fines and suspension are both on the table. Our complaint guide covers the process step by step.
Outside of NAR’s ethics process, there’s little direct legal recourse for a buyer based solely on an exaggerated claim about buyer interest.
What we tell clients who sense a bluff
The comps still set the ceiling; whatever they claim is what we tell every client weighing a claimed competing offer. A lowball offer is still a bad idea regardless. So is bidding above what real comparable sales support, just because a broker mentioned other interest.
As Georges puts it, “it’s all about the numbers and the execution,” and staying anchored to real numbers is exactly how you avoid overpaying due to an unverifiable claim. On an average purchase, our commission rebate returns roughly $22,000 at closing. Run your full numbers on the closing cost calculators before you react to a claimed bidding war.
Common questions
Can a realtor tell you what other offers are on a house? Only with the seller’s approval and only if you ask, per NAR’s Code of Ethics. Without seller approval, the agent isn’t required to say anything.
Is it illegal for a realtor to lie about having other offers? No specific New York law prohibits it. NAR members face ethical consequences under the Code of Ethics, but non-members aren’t bound by it.
Why would an agent exaggerate interest in a listing? It speeds up a sale and can push buyers toward a higher offer, which benefits both the seller and, through commission, the agent.
How do I know if a claimed bidding war is real? Look for concrete signs, like a compressed offer deadline set across multiple agents, and price off real comps rather than a broker’s verbal claim alone.
What can I do if I catch a realtor lying about offers? If they’re a NAR member, a complaint to their local Realtor association can lead to real consequences. There’s limited direct legal recourse otherwise.
Nicole Fishman Benoliel co-founded NestApple in 2017. She's a lawyer admitted to the New York bar - her law degree is from La Escuela Libre de Derecho in Costa Rica, with further study at IE Business School in Madrid and an LLM from Fordham in New York. She does not act in a legal capacity at NestApple; every client is referred to an attorney who handles real estate deals full time.
