How to get every seller/owner to approve the realtor before marketing a Delaware property
Quick answer: Identify who has legal authority to approve a listing, confirm that authority in writing, obtain a signed written listing agreement from every owner or an authorized representative, and clear any required corporate, trust, probate, or homeowners association approvals before marketing. If people disagree, pause marketing until authority is documented or a temporary agreement or court direction is obtained.
Disclaimer
This is general information, not legal advice. I am not a lawyer. For help tailored to your situation, consult a Delaware attorney experienced in real estate, probate, corporate, or trust law.
Detailed answer — step-by-step checklist under Delaware law and common practice
The most common reason a realtor needs “approval by everyone” is because more than one person or entity holds legal interests in the property (co-owners, executors, trustees, a board, or an LLC). Follow these practical steps to reduce risk before marketing the property in Delaware.
-
Step 1 — Identify all decision-makers
Find everyone who has legal authority over the property. Examples:
- Individual co-owners on the deed (joint tenants, tenants in common).
- Personal representative or executor if the owner is deceased.
- Trustee if the property is held in trust.
- Authorized officer or manager if an entity (LLC, corporation) owns the property.
- Power of attorney holder with authority over real estate transactions.
- Condominium association or HOA if its rules require board approval before marketing or selling.
How to check: review the recorded deed and the county land records for the chain of title; check corporate/LLC records or the trust instrument if available.
-
Step 2 — Confirm each person’s actual authority in writing
Do not rely on verbal assurances. Collect documents showing who may sign or act:
- Recorded deed showing owners’ names.
- Letters testamentary or letters of administration from Delaware Probate Court for a personal representative (if an owner died).
- Trust certification or trustee’s certification identifying the trustee and their powers.
- Corporate resolution, LLC operating agreement, or meeting minutes that authorize an officer or manager to list or sell property.
- Valid power of attorney explicitly granting authority to sell or market real estate (make sure it is durable and includes the necessary powers).
Tip: If someone claims POA authority, get a certified copy of the POA and a recent statement or certificate of incumbency from the issuer of the power.
-
Step 3 — Use a single, clear written listing agreement signed by all owners or by an authorized agent with proof of authority
The listing agreement is the primary document authorizing the broker to market and sell. Best practices:
- Have all legal owners sign the same listing agreement. If that’s not possible, have an authenticated authorized representative sign with accompanying proof (e.g., certified POA, letters testamentary, trustee certificate, corporate resolution).
- Specify the broker’s duties, the agreed commission, the listing period, and any special conditions (e.g., no open houses without unanimous consent).
- Keep copies of identification and the documents proving authority together with the signed listing.
If multiple owners disagree about the broker, consider a temporary limited listing that requires unanimous consent before certain actions (such as open houses) or a short listing period while you resolve the disagreement.
-
Step 4 — Check for additional approvals or constraints
Some sales need extra sign-offs:
- HOA or condominium boards may have approval processes or right-of-first-refusal rules in their declarations or bylaws.
- Lenders or mortgage holders: a mortgage does not usually stop marketing, but the lender must be paid at closing and may have requirements; ensure there are no contractual restrictions in loan documents.
- Leases: if tenants occupy the property, review lease terms for notice, showing requirements, or tenant rights that affect marketing.
- Co-ownership agreements between owners (partition agreements, buy-sell agreements) that dictate how a sale or listing must be handled.
-
Step 5 — Resolve disputes before heavy marketing
If one owner objects, it’s risky to proceed. Options include:
- Try mediation or negotiation to get written consent or an acceptable compromise.
- Obtain a court order or instruction (for example, in probate or trust matters) that confirms the representative’s authority to market and sell.
- Consider a limited marketing approach (private showings by appointment only and language in marketing that the property is being shown subject to verification of authority).
Putting marketing on hold until the authority is clear avoids potential legal claims that could stop a sale later.
-
Step 6 — Maintain a clear record of consent and communications
Keep signed documents, emails confirming consent, receipts, and any HOA or lender correspondence. Document who authorized what and when. This paper trail helps resolve later disputes and protects the broker.
-
Step 7 — Follow Delaware licensing and disclosure norms
Make sure your real estate professional is licensed and follows state disclosure rules and brokerage duties. For Delaware broker licensing rules, consult the Delaware Code on professional licensing:
Delaware Code — Title 24, Chapter 29 (Real Estate Brokers and Salespersons)
Also check Delaware resources for probate, corporate, or trust procedures if those areas apply: Delaware Code — Title 12 (Decedents’ Estates and Fiduciaries) and the Delaware Division of Corporations at corp.delaware.gov.
Example hypothetical to illustrate the process
Hypothetical: Three siblings (A, B, C) are tenants in common on a Wilmington house after their parent died. A wants to list with a realtor but B and C are hesitant.
What to do: First, check the recorded deed to confirm ownership. If the estate has a personal representative with letters testamentary, that person may have authority to act—get certified letters. Otherwise, all three must sign the listing. If one sibling gave a durable power of attorney to another with authority to sell real estate, get a certified copy of that POA. If they can’t agree, try mediation. If mediation fails, consider seeking court instruction from Delaware Probate Court or filing partition action as a last resort.
Helpful Hints
- Never market or accept offers relying on informal verbal approval—insist on written signed authority.
- Collect proof of identity along with any document authorizing someone to sign on another’s behalf.
- Ask the listing broker to include a clause in the agreement stating that marketing will only proceed after delivery of the specified proof of authority—this protects the broker and sets expectations.
- If an owner is incapacitated, a properly executed durable power of attorney or a court-appointed guardian is usually required to act; check the document carefully for specific powers over real estate.
- When an LLC or corporation owns the property, request a certified copy of the board resolution or an incumbency certificate from the Delaware Division of Corporations records to confirm officers’ authority.
- Keep any HOA or condo governing documents handy—some communities have pre-sale requirements or approval processes that must be completed before listing.
- If you plan to use escrow for deposit handling or marketing funds, choose an escrow holder or title company familiar with Delaware closing practices.
When to talk to a Delaware attorney
Get legal help if:
- Owners cannot agree about marketing or sale and you need binding direction.
- There is a dispute over who has authority to sign.
- Competing claims exist (e.g. alleged forged signature, conflicting POAs, unclear trust terms).
- You need a court order to allow marketing or sale (probate court, chancery, or superior court matters may arise).
Final note: Following these steps will reduce the risk of a later challenge that could delay or undo a sale. When in doubt, pause marketing until authority is documented or you obtain legal guidance.