commission splits question. If to share or not. (feedback, agents, commissions)

[keeperk]

I would like some opinions on this please:

My associate and I have considerable time and efforts working with a potential buyer finding her the right piece of ground. To keep a long story short, LOTS of time and effort with her and the research of the property, finding owners and so on. We have turned over every rock and kept her in the loop constantly and showing her possibilities. Found her possibilites for her to just waste time with low ball offers. Would even counter a counter when the seller writes this IS the bottom line, don't counter it.

She did come to see the latest piece of property, wanted to buy it, wrote an offer, then the seller changed his mind. After about 2 months the owner finally decided firmly he would sell. So we let her know he would sell and she could write a deal on it.

She emailed us letting us know she has a friend with a real estate license and would like us to pay him 1/2 of the commission, so she wanted another appointment so we could show him the property. Plus we'll have to spoon feed him the information to write a proper contract.
We're not talking just around the corner stuff either. It takes considerable time away to show it.

Would you pay this? Don't you think that takes a lot of nerve to ask that?

[sablebaby]

I would NOT pay it and YES she has a lot of nerve. I would write back to her your tales of how much time and effort you have put into working with her, to remind her of who she is working with. You were the one who procured the potential deal, so why would you pay someone else?? Either get this in her head or move on and don't work with her anymore. Maybe tell her that you will consider legal action if she doesn't pay you the commission.

[mainebrokerman]

the PROCURING CAUSE was you, not any other broker.

id send an email, quoting either state law, or your companies policy about "procuring cause" and how commissions are split


in a similar situation, i explained to my client, that i was an "appointed" agent, working independently of any other broker in our office, and unless its an official referrel, (from the procuring cause, another broker) also working independently from any other broker.
also by placing another broker on the contract, he/she is liable for the knowledge of property and the transaction, which they know very little about.

usually this happens with a newly licensed broker, an experienced broker, would steer clear of this,,so the liability/responsibility of the contract and knowledge of property is enough to scare them away,

also if you have an exclusive buyers broker agreement, this excludes other brokers.

after reading your original post again, id politely ask for the brokers phone number, call him, and explain procuring cause.

id also ask your boss, the owner of the real estate company,,

[palmcoasting]

Sure it takes a lot of nerve to ask that. First off, save ALL of your emails back and forth from her to show you've been in constant contact with her.
Procuring cause can be a tricky thing and is different in state to state.
What did your broker say about the situation? Referal fees are from broker to broker and have nothing to do with the agents. It's up to your broker.

[keeperk]

Thanks for your replies. I am the broker and work with an associate. At first we told her no we would not pay him and explained why, which is in your posts. Then I had decided if her agent(friend) had the nerve to show his face for a hand out, we would pay him 1/2% commission of the selling price, he could then share in the future liability if any arose, and write the contract himself. If he was dumb enough to do it, that would shift some responsibility to him as she is a high maintenance person.

[olecapt]

Say a lttle more about the deal. Is the property in question in an MLS? Note that is an important question. There is no "procuring cause" if it is not.

[keeperk]

No, it's not on an MLS.
I think probably what happened was she told her friend she was going to buy something, and how would he like some free money.

[olecapt]

Originally Posted by keeperk

No, it's not on an MLS.
I think probably what happened was she told her friend she was going to buy something, and how would he like some free money.

That says it is a free fire zone. The client has no obligation to you other than any contract you have with her.

You can also contract with the seller...though be careful as you may have some fiduciary duties to the buyer.

In a commercial deal at this point you simply make the best deal you can...but you do have to deal.

[keeperk]

Thanks for your replies. The end of the story is, the customer came back to see the land again with her builder instead of her broker. She said nevermind about the broker and told us to write up the contract.
thanks for your feedback on this.

[olecapt]

Originally Posted by keeperk

Thanks for your replies. The end of the story is, the customer came back to see the land again with her builder instead of her broker. She said nevermind about the broker and told us to write up the contract.
thanks for your feedback on this.

Congrats...may all both our deals work out so well.