Pocket Listing - Business Sales
A pocket listing to sell a business exists when a business broker takes a listing without placing the listing onto any of the internet sites used to offer businesses for sale. Pocket listings are accepted only at the request of the client. Pocket listings are legal in California but are discouraged. In order to satisfy a business broker's fiduciary duty, the business broker should do the following before taking a pocket listing:
Disclose in writing: (1) that business brokers from other offices and their buyer clients will most likely be unaware that the seller's business is available for sale, (2) unaware that information about the seller's business will not be transferred to all of the internet sites the public commonly utilizes in searching for business listings, and (3) if the listing agent becomes a dual agent and represents both the buyer and seller, he or she will make far more commission money than if another business broker represents the buyer.