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Old 12-02-2007, 02:43 PM
 
2,054 posts, read 5,624,028 times
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Hi,
I have a question. Does a buyer's agent have to disclose that they would receive a bonus if they sell a particular house? We signed our contract and now our agent said that she just found out that she gets a bonus for selling that house to us. Had we known that the seller was giving a bonus to the agent, we feel as if we could have had more negotiating power. Are there any disclosure laws about this??
TIA
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Old 12-02-2007, 03:30 PM
 
Location: Hernando County, FL
8,488 posts, read 19,683,239 times
Reputation: 5397
Quote:
Originally Posted by sandycat View Post
Hi,
I have a question. Does a buyer's agent have to disclose that they would receive a bonus if they sell a particular house? We signed our contract and now our agent said that she just found out that she gets a bonus for selling that house to us. Had we known that the seller was giving a bonus to the agent, we feel as if we could have had more negotiating power. Are there any disclosure laws about this??
TIA
each state is different
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Old 12-02-2007, 04:12 PM
 
2,054 posts, read 5,624,028 times
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well does it at all seem weird? how can we figure out if this was unethical?
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Old 12-02-2007, 04:13 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 36,364,080 times
Reputation: 2661
Quote:
Originally Posted by sandycat View Post
well does it at all seem weird? how can we figure out if this was unethical?
Can't be unethical if she did not know about it.

You might be able to chase her for not being competent because she did not know about it.

You might also suggest to her that the bonus should be given to you. I would.
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Old 12-02-2007, 04:16 PM
 
Location: Nashville, TN
1,177 posts, read 3,979,443 times
Reputation: 944
Quote:
Originally Posted by sandycat View Post
Hi,
I have a question. Does a buyer's agent have to disclose that they would receive a bonus if they sell a particular house? We signed our contract and now our agent said that she just found out that she gets a bonus for selling that house to us. Had we known that the seller was giving a bonus to the agent, we feel as if we could have had more negotiating power. Are there any disclosure laws about this??
TIA
Sandy, IMO, no matter the law, the agent should have disclosed this before any contract was signed. Did you have a signed Buyer's Representitve Agreement indicating the percent commission that the agent is to be paid irrespective of the bonus? If so, you could have had more negotiating power by having the bonus amount reduce the contract price of the house or reduce closing costs. I also find it unusual that your agent didn't know about the bonus before you signed the contract as bonuses are usually on the agent MLS as well as other places. Depending on the state you are in and what a Buyer's Rep agreement states, you may have some recourse.
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Old 12-02-2007, 05:42 PM
 
Location: Columbia, SC
10,576 posts, read 20,585,147 times
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I actually had a similar situation once. My clients told me a home they wanted to see. I showed them about 5 others also and they picked the one they told me about. I didn't realize until we were writing up an offer that there was a bonus because it in the agent remarks and had simply forgotten about it until that point. The clients didn't care that there was a bonus though.
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Old 12-02-2007, 05:52 PM
 
Location: Hernando County, FL
8,488 posts, read 19,683,239 times
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I never disclose what the commission split is or if there is a bonus.
I show homes that suit the needs of my buyer and takes the co-op that is offered.
Does the buyer feel that they paid more than the house is worth?
If so, why did you offer that?
Sometimes we make 2%, sometimes we make 3%, sometimes we make more.
If you did not have an agreement with the agent before looking at homes then they get what they get.
If you had decided not to buy anything were you willing to pay the agent for their time?
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Old 12-02-2007, 06:45 PM
 
238 posts, read 736,492 times
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Quote:
Originally Posted by sandycat View Post
Hi,
I have a question. Does a buyer's agent have to disclose that they would receive a bonus if they sell a particular house?
No.


Quote:
Had we known that the seller was giving a bonus to the agent, we feel as if we could have had more negotiating power. Are there any disclosure laws about this??
No.

So far as I know, the only way to protect yourself is to demand to see the actual MLS listing (not the consumer version), which includes the 'agents only' section.

Last edited by Cornerguy1; 12-02-2007 at 10:10 PM.. Reason: unsubstantiated comment
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Old 12-02-2007, 07:46 PM
 
Location: LEAVING CD
22,973 posts, read 25,541,681 times
Reputation: 15623
Quote:
Originally Posted by Mike Peterson View Post
I never disclose what the commission split is or if there is a bonus.I show homes that suit the needs of my buyer and takes the co-op that is offered.
Does the buyer feel that they paid more than the house is worth?
If so, why did you offer that
?
Sometimes we make 2%, sometimes we make 3%, sometimes we make more.
If you did not have an agreement with the agent before looking at homes then they get what they get.
If you had decided not to buy anything were you willing to pay the agent for their time?
And people wonder why some distrust RA's..... I could be reading this totally wrong and if so I apologize in advance, but it sounds very self serving and not in the best interest of the one who contracted the service to begin with. Can anyone say duty to the client or, is it just to self?
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Old 12-02-2007, 07:53 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 36,364,080 times
Reputation: 2661
Quote:
Originally Posted by LinusK View Post

No.
Yes has to be disclosed at least in the HUD 1. Other places in most states.






Quote:
No.

So far as I know, the only way to protect yourself is to demand to see the actual MLS listing (not the consumer version), which includes the 'agents only' section.
[/quote]

Can't. The full form contains information that belongs to the seller which is not publishable without permission. In general MLS rules prevent such a disclosure. They cite the confidentiality of some of the data...like Phone numbers and gate codes and even financial status.

Last edited by Cornerguy1; 12-02-2007 at 10:10 PM.. Reason: orphaned content
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