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Old 11-24-2009, 10:31 AM
207 posts, read 758,864 times
Reputation: 119


Since the following pertains particularly to California, it was suggested that I post in this forum for a possibly more definitive answer. Thanks.


A Broker has given me, along with the Purchase Contract, a Broker Agreement to sign. I was not alerted to the particulars of the Agreement prior and have not signed anything as yet. I have no qualm about signing anything which would specify that any property that this Broker advises me of and/or shows me qualifies this Broker as my sole representation for that particular property. However, since I am not and do not elect to be obligated to any payment of Broker commission, I hesitate to sign the CAR Form BRNE, which seems to be geared to clarifying the Buyer responsibility to pay the Broker. And so I ask the following .....

In regard to the CAR BRNE form {Non-Exclusive/For Compensation/Irrevocable}, if the compensation amount area is left blank does that automatically declare that there is no compensation to Broker due by Buyer?

It also states in another Paragraph that if the deal does not go through, even though it may not be the fault of Buyer, the Agent is owned compensation by the Buyer. Does this still apply and how does this apply if the compensation paragraph is not filled in with a dollar amount.

I do not have any agreement to be responsible to pay the Broker commission. It is to be paid by Seller as per the Purchase Agreement, and if the deal does not go through the Buyer still has no obligation to pay a Broker Commission.

Would not the Car Form BRNN {Non-Exclusive/Not For Compensation/ Revocable} be more appropriate since the understanding is Non-Exclusive and with No Compensation due from Buyer?

I agree with the understanding that any property this Broker may show me qualifies the Broker to receive commission from the Seller, and should I then have another Broker show me the same property, I then would have a commission responsibility to the Broker who showed me the property first {of course I would never use two agents for the same property}. Does the CAR Form BRNN Non-Exclusive/Not For Compensation/Revocable provide for this adequately in terms of implying that the Broker who first shows me the property is deemed my representation for that property?

I am afraid to sign the BRNE Form since it so heavily relies on Broker Compensation by Buyer, which is not the case of our understanding, even though the Broker left blank the area which is meant to show the amount of compensation. If I were to agree to this form, I would insist that the Broker put a 0 dollar amount in these fields for clarification and also to put an end date as opposed to "until a transaction has resulted", since this Agreement is irrevocable. Am I right?
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