U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
 
 
Old 10-08-2010, 06:15 PM
 
Location: DFW - Coppell / Las Colinas
18,897 posts, read 17,602,087 times
Reputation: 18181

Advertisements

Let me ask you guys a question, we are currently dealing with a terrible buyers agent who kicks back a large portion of her commission to the buyer. Instead of doing this after closing she wants to reduce the price of the home and sign an agreement between brokers that supersedes the MLS agreement that lowers her commission by the amount.

I hate to see her handle her payment to the buyer this way, would this violate your MLS agreement ? Do you see anything that could come back to bite us ?
Quick reply to this message

 
Old 10-08-2010, 07:06 PM
 
Location: Columbia, SC
7,038 posts, read 11,206,003 times
Reputation: 3566
I don't know of anything that would violate our MLS rules by doing that, but I think an attorney or your MLS head should be able to provide better MLS. I've had one of those guys too. I've done all the work, I feel like that joker shouldn't even be paid. Terrible experience.
Quick reply to this message
 
Old 10-08-2010, 08:32 PM
Status: "2B the trusted driving force in local real estate." (set 4 days ago)
 
Location: South Metro Denver for 25 years
8,693 posts, read 19,386,658 times
Reputation: 4418
The brokerage would have to sign the agreement and I would copy the MLS.
Quick reply to this message
 
Old 10-08-2010, 08:53 PM
 
Location: Cary, NC
19,765 posts, read 31,656,940 times
Reputation: 16856
Have her reimburse your legal fees for having an attorney review the agreement.
Quick reply to this message
 
Old 10-08-2010, 09:05 PM
 
Location: Tempe, Arizona
4,511 posts, read 7,519,883 times
Reputation: 2106
Not a problem here. My brokerage has a special commission reduction form for title company instructions where we can reduce broker commission to be paid out and assign difference to either the buyer's closing costs, or a reduction in purchase price. Does not involve the MLS at all.
Quick reply to this message
 
Old 10-08-2010, 09:13 PM
 
Location: Northern Virginia
259 posts, read 333,654 times
Reputation: 70
Yes, this would seem to counter our local MLS agreement, in the offer of compensation to the selling agent. It's been a point of contention in short sales and REO's that the listing agent offers, the bank doesn't agree, too bad.

Did you mis-speak when you suggested that she should do "this after closing"? In Virginia, it's accounted for *at* closing on the HUD-1 either as a selling broker's credit to closing costs, or a seller's credit (new construction).

She may be a terrible buyer's agent ... please don't confuse that with an agent who rebates commission. And you didn't define large .. care to?

Quote:
Originally Posted by Rakin View Post
Let me ask you guys a question, we are currently dealing with a terrible buyers agent who kicks back a large portion of her commission to the buyer. Instead of doing this after closing she wants to reduce the price of the home and sign an agreement between brokers that supersedes the MLS agreement that lowers her commission by the amount.

I hate to see her handle her payment to the buyer this way, would this violate your MLS agreement ? Do you see anything that could come back to bite us ?
Quick reply to this message
 
Old 10-08-2010, 09:21 PM
 
Location: Cary, NC
19,765 posts, read 31,656,940 times
Reputation: 16856
Quote:
Originally Posted by rjrcm View Post
Not a problem here. My brokerage has a special commission reduction form for title company instructions where we can reduce broker commission to be paid out and assign difference to either the buyer's closing costs, or a reduction in purchase price. Does not involve the MLS at all.
Yes, we have a standard NCAR agreement form that could be used for this.
Quick reply to this message
 
Old 10-09-2010, 07:41 AM
 
Location: Athens
470 posts, read 853,505 times
Reputation: 255
Not all states allow for "rebates" at the closing table. This may be why the buyer's agent is requesting this. Or, she may just want to help her buyer close with a lower loan amount that is more likely to appraise.
Quick reply to this message
 
Old 10-09-2010, 08:30 AM
 
Location: Austin
4,464 posts, read 8,460,134 times
Reputation: 3604
Rakin, There's nothing wrong with it at all. I've done this with referral fees many times. As long as it's on page 8 and reiterated in special provisions, all parties are covered. Granted, commissions shouldn't be brought up in special provisions, but each time it's come up, that's where the "brokers" wanted it stipulated so full disclosure between buyer and seller were made.

Plus, some seller expenses go down like title policy and commissions to you, unless you stipulate that the seller will pay your commissions based on the original agreed upon sales price.
Quick reply to this message
 
Old 10-09-2010, 10:36 AM
 
Location: DFW - Coppell / Las Colinas
18,897 posts, read 17,602,087 times
Reputation: 18181
Quote:
Originally Posted by FalconheadWest View Post
Rakin, There's nothing wrong with it at all. I've done this with referral fees many times. As long as it's on page 8 and reiterated in special provisions, all parties are covered. Granted, commissions shouldn't be brought up in special provisions, but each time it's come up, that's where the "brokers" wanted it stipulated so full disclosure between buyer and seller were made.

Plus, some seller expenses go down like title policy and commissions to you, unless you stipulate that the seller will pay your commissions based on the original agreed upon sales price.
I hear what you are saying & thanks to all for your feedback. We recently took a class by one of the lawyers on the Lawyer Broker Committee and she indicated that the agent can pursue a claim after closing for the full amount of the commission.

A contract between two parties cannot agree to a 3rd or 4th party doing something.

The irritating part of this is the agent is so poor she does not call or take care of business. They have set minimum standards for listing agents but discount buyers agents can just put their name on the contract to collect the fee. We have requested her client stop communicating with us directly and go through their agent.

One of the negatives is this hurts sold comps which are already hard to come by and does not reflect the true sales price in a community.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $89,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top