Real Estate agent paying the broker fee! (buyer's agent, commission, agreement)
Please register to participate in our discussions with 2 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.
what if the buyer has signed the agreement about paying the $400 broker fee at closing, but forgets to pay and the buyer's agent forgets to collect.
Can the broker take the money out of the agent's commission? is that legal?
If the agent has an agreement with their Broker that each transaction costs $400, then the Broker can take out the money from the commission. It was only passed on to the buyer, which is ridiculous, because the agent doesn't want to be out of pocket the money.
If the agent has an agreement with their Broker that each transaction costs $400, then the Broker can take out the money from the commission. It was only passed on to the buyer, which is ridiculous, because the agent doesn't want to be out of pocket the money.
ahh, i see.
is this "agreement with the broker" done at the time of hire typically? in writing?
and is it typically passed on to the buyer or....not?
ahh, i see.
is this "agreement with the broker" done at the time of hire typically? in writing?
and is it typically passed on to the buyer or....not?
It was probably in their employment agreement but glossed over at time of hire. It's a policy that greedy brokers implement to fleece their agents and/or their clients. It is profiteering and the client should never be expected to pay this. I can't imagine the nerve of a listing brokerage already being paid thousands in commission tacking on a junk fee like this. Buyer's broker is being paid thousands as well so same goes for buyers.
I do not charge my buyers the Broker's fee, so I can't tell you if it's "typically passed on to the buyer". I think it's kinda $h!tty for a buyer's agent to do that. The Broker's fee is a cost of doing business and the agent should pay the fee their broker charges.
Yes, the Broker's fee would be in writing as part of their Independent Contractor Agreement between Broker and Agent. Every brokerage is different, so each agent should read their agreement carefully.
The office I work for has a Broker's fee and since I'm primarily a Buyer's Rep I have the seller pay the fee. And yes, the Broker can take the fee out of the commission if it is not collected.
I just had a sale where I didn't pay enough attention to the HUD and didn't notice the closer had put the wrong amount for the fee. She was $50 short. The $50 dollars came out of my commission but was reimbursed by the closer after I pointed out the mistake.
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 register to participate in our discussions with 2 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.
