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Old 10-23-2008, 06:22 PM
 
12 posts, read 39,084 times
Reputation: 14

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It was only after he found out about my sisters closings last year and that I had given them my commissions that this became an issue.

Last edited by bsprtsgrp; 10-23-2008 at 06:33 PM..
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Old 10-23-2008, 08:15 PM
 
Location: Virginia Beach, VA
2,124 posts, read 7,926,341 times
Reputation: 813
what does your brother do for a living???? is he a doctor? if so, do you "pay" when you use him or do you get doctor advice for free? Is he an attorney? does he handle your legal business for free?

if the answer is yes, then by all means you should work for free for him.

if the answer is no, then explain to him "he doesn't work for free, why on earth does he think you should work for free?"

the last time I worked for my brother, we were selling his house. I ended up taking a reduced commission to make the deal work, but I still took a commission (he insisted on it). and he was actually paying the commission. When I help him buy (soon), I will absolutely take the commission, and he (again) would insist on it. he knows this is my biz and I took a reduced commission on the sale of his property and still did all the advertising, helped him fix it up and stage it for sale.

Family is crazy. don't let him guilt you into anything.

shelly
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Old 10-23-2008, 10:05 PM
 
1,305 posts, read 2,146,909 times
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All the girls I know help out their sisters more than their brothers. They claim it's something called "a sister thing" that we men just don't understand.

That's life. Tough for your brother. But that's the choice you made and he needs to respect it.
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Old 10-24-2008, 07:25 AM
 
Location: Virginia Beach, VA
2,124 posts, read 7,926,341 times
Reputation: 813
Quote:
Originally Posted by bigtrees View Post
All the girls I know help out their sisters more than their brothers. They claim it's something called "a sister thing" that we men just don't understand.

That's life. Tough for your brother. But that's the choice you made and he needs to respect it.
whew, good think I only have brothers!! LOL!!

shelly
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Old 10-24-2008, 10:41 AM
 
5,441 posts, read 4,845,198 times
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Quote:
Originally Posted by bsprtsgrp View Post
If you are asked by a relative to represent them as a buyer's broker and you found them a property and spent numerous time & effort researching and negotiating a deal, how do you handle the sales commission disbursement at the closing? Do you just give your relative your sales commission? What is the protocol for this type of situation?
Firstly, consult with your principle broker to see what the company's policy is regarding sharing commissions with clients, whether they are family members or not. If, after getting approval from your broker, you decide to share your commission with your family member, then determine what you feel your services have been worth; it very well may be that you have earned the entire commission and no refund is warranted.

Lastly, while there is little, if any , protocol from a legislative standpoint, you might consider lender disclosure for any funds that are being passed along to the buyer.
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Old 10-25-2008, 08:31 AM
 
12 posts, read 39,084 times
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Thanks everyone for your insights, I sincerely appreciate it. It helps being validated by your peers who have nothing to gain by giving an honest answer here. Still don't know what I will end up doing, as he has alienated me from the family and has taken my sisters with him. Despite my explanation to them, they (sisters) felt he deserved my paycheck as well because I had given it to them in the past. So, no girl power here, "BigTrees!" Even though I explained to them that he and I had a verbal agreement up front, they didn't agree with it and thought it wasn't fair. I have had to say no to all my charities this year, however when I can afford to be more charitable, I think I will be more selective.

And you are correct, "ShellyTC," he does not work for free; at least not with me. Never has and I personally don't expect that. I value and respect others' work.

I agree with those who suggested, "get things in writing even (and especially) from family." Unfortunately, that wouldn't stop my own family member (brother) from reneging. Family is more important to me than money, and I would rather give up my commission to have his love. Yet he isn't demonstrating that same sentiment (that family is more important than money). So in the end, I don't know what I would be "buying" after all.

I guess time will tell. Thanks again.
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Old 10-25-2008, 03:49 PM
 
Location: Virginia Beach, VA
2,124 posts, read 7,926,341 times
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bsprtsgrp,

You have to do what you think is best. Good Luck to you. And remember, what goes around usually comes around. Karma.

shelly
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Old 10-25-2008, 04:51 PM
 
353 posts, read 902,306 times
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A few thoughts...

1. A real estate BROKER is the only one who can legally collect a commission. He/She then shares it with the salesperson. If you are the salesperson, you can not forgo the commission without the permission of your broker.

2. If you collect your commission it is taxable, regardless of whether you give it to a relative, pay your bills or buy booze with it. Remember to withhold the tax from your relative before paying out money, otherwise this is costing you time AND money. There's no reason you should have to reach into your pocket to pay this.

3. Depending on how the commission is paid at the closing, this may actually benefit the seller instead of your relative. Many times a buyer broker commission is folded into the deal so that it can become part of the buyer's mortgage. Although the fee is paid by the buyer, the actual check comes from the proceeds of the closing before the final check is cut to the seller. Assuming the house sells for $100K with a 6% commission and that is split 50/50 between the buying and selling end of the deal, the seller would pay the listing broker his $3K and not pay you.... so the seller takes his $100, pays $3 and ends up with $97K... more then if you had done a straight deal.

Here's what I would do....

First, don't work for free... nobody has to do that. Give a discount instead. DISCLOSE this to your broker ahead of time and make sure that you get commission credit for the entire commission, as if it had been a normal deal. With the approval of your broker IN WRITING, give this info to the closing attorney and get a check for the portion that is due to your broker and just leave your part out.

CHECK WITH YOUR ACCOUNTANT TO MAKE SURE THIS CAN NOT BE SEEN AS TAX EVASION OR ANY OTHER VIOLATION OF TAX LAW.

DISCLOSE EVERYTHING... DON'T DO A FAVOR FOR A RELATIVE AND END UP GETTING FIRED OR BEING BROUGHT TO ARBITRATION WITH YOUR LOCAL BOARD OF REALTORS.
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Old 10-29-2008, 05:34 AM
 
Location: Skaneateles
142 posts, read 722,702 times
Reputation: 73
If you have given back the commission to your sisters, then you should do the same for him. I have helped two siblings looking to buy find realtors in other towns and I have kept the referral fee. My sister understood completely, and felt great for being able to help me. My brother at first didn't get it and told me he wasn't comfortable with me " making money off family" until I explained that the commission was being paid by the seller, not him as the buyer. Once he understood, he was glad to help too (in both cases, my share was about 3K). I would feel awkward about keeping a commission if they were the sellers, but all I could do was give back my share. I would rather try to get my broker to lower the rate.
At the end of the day, it probably isn't worth fracturing the family.
Good luck to you.

Jo
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Old 10-29-2008, 09:16 AM
 
192 posts, read 549,195 times
Reputation: 71
Why did your brother ask you to represent him? Because he trusted you - right? Because he didn't have to wonder if he had the "right" agent, I would imagine. As stated above, if you had not had an agreement with him that you would EARN and keep the commission then there could have been a misunderstanding (ie he used you to get a discounted commission) I'm so sorry you're going through this. Before I was in real estate we were looking for an agent for our second home, it happened to coincide with my sister qualifying for a fantastic free cruise. The referral got her the trip - when we got an offer (I had then begun real estate courses) I asked about her commission and she said this was her living and that was that. It was messy for awhile but it's family after all - and all turned out well in the end. I wish the same for you. We have enough stress during this market!!!
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