Obligated to pay Commission on Seller Concessions?

[MikePRU]

Originally Posted by stevenshadow

Just heard from our MLS that it is against NAR rules to base commission on Net sales price.
We used the disclosure "Commissions are based on NET sales price unless otherwise noted (Net sales price equals sales price minus seller-paid concessions)"

That's weird! Our MLS has a field to indicate whether commission is based off of net sale price or gross sale price. Granted, our MLS is not owned by the local Realtor board but I wouldn't think they'd put a field in that would violate NAR rules.

Originally Posted by stevenshadow

They flagged us for a violation. After reading the rules, it is perfectly fine for the seller to base commissions off net, but the listing agent cannot. The only option they give: LA absorb the difference (this has caused a LOSS for us in some instances before using the commission disclosure) - it sucks to PAY to sell a house.

I'm absolutely befuddled by this. I'd love to hear an example with the math behind it.

[MikeJaquish]

I would revise my earlier post, and say that our Triangle MLS rules do not allow commission to be calculated off net price.
Gross only.
It is a violation to enter a net price commission note into a listing.

[Karen123RE]

I remember being called by the attorney and asked to change my commission bill to reflect the actual sales price, not the sales price plus closing costs which was $7500 more...even thought that (the amount including the $7500) was the actual price the buyer paid. I think the seller objected to it, even though it was very little difference.