Contacting a seller

January 22, 2024

by a searcher from Millersville University of Pennsylvania in Mantua Township, NJ, USA

I inquired with a broker about a business for sale back in July. The business wasn't the right fit for me at the time. Some things have changed and it looks like the business still hasn't sold based on the website still showing the original owner as the owner. I'd think if it had been sold that would have been changed. The broker no longer has the business listed on their website. Would it be acceptable at this point for me to reach out to the business owner directly to see if they're interested in selling?

Reply by a searcher
from University of Tennessee in Nashville, TN, USA

I concur with ^redacted‌ regarding on-going obligations related to a NDA, if executed. You could ask the Broker to waive the NDA (make sure it's in writing) but don't expect a warm response from him/her. Even with your waiver, the Seller may have a separate contractual obligation to the Broker that may last years, especially if you as the Buyer were introduced to the Seller by the Broker. Going back through the Broker will alleviate any gray areas that could potentially arise via circumvention.

Reply by an intermediary
from California State University, Northridge in California, USA

Contacting the seller directly and making a deal is fine as long as you notify the broker that you're putting a deal together. Our listing agreement has a 3-year "tail." This means that the broker is owed his fee if the seller closes a deal with a buyer introduced by the broker within that time period. If you go around the broker and close the deal with the seller, both the buyer and seller are liable for the brokerage fee plus substantial penalties.

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