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Hi - sorry didn't see this post before. I have looked up the "Exclusive Right to Sell" Listing form used by most brokers around here... and it says nothing about another broker having to be a Realtor or member of the MLS. It says that they will share their commission with a buyers agent and lists an amount they will pay - usually a percentage. Can you show me something that indicates otherwise?
The Exclusive Right to Sell is just a listing agreement between seller and agent. The MLS has its own by-laws that are part of membership which is a legal agreement between buyer agents and listing agents. The first document has nothing to do with the MLS.
I would respectfully request the agents that have responded to this post step back and view this question from the viewpoint of a consumer. You are hyper-focused on yourselves - and what you perceive to be the "normal" course of business. You may not like that you have to do a little extra work... but you also are not entitled to a buyers agent commission since the consumer wants to use someone else.
"Will your agent provide contract documents from his or your attorney, or will you have to use NCAR documents provided by the listing agent?"
Forms would be provided by the buyers agent -- don't know where they would get them...
The fact that you are not getting the desired response does not mean I am at all focused on myself.
The "buyers agent commission" exists in two places only:
In a listing agreement with the seller to offer such a commission
On the MLS, of which your proposed agent is not a member and has no claim.
The first is quite negotiable between the seller and the listing agent, and the lack of capacity or desire of a buyers agent to do their job would be a material reason to consider a renegotiation between seller and listing agent.
The second is not relevant to this thread.
It is a shame to think that a hope for competence and responsibility on the part of another licensee could be considered selfishness, or clinging to a silly notion of "...the 'normal' course of business."
The question on source of documents is relevant. If the buyers agent produces NCAR forms out of the blue, it is an integrity red flag. If the listing agent has to provide documents, it is just another item the buyers agent is slacking on. If the buyer or agent provide documents from an independent attorney or the office supply at least "normal" would be recognized.
I would respectfully request the agents that have responded to this post step back and view this question from the viewpoint of a consumer. You are hyper-focused on yourselves - and what you perceive to be the "normal" course of business. You may not like that you have to do a little extra work... but you also are not entitled to a buyers agent commission since the consumer wants to use someone else.
"Will your agent provide contract documents from his or your attorney, or will you have to use NCAR documents provided by the listing agent?"
Forms would be provided by the buyers agent -- don't know where they would get them...
We are trying to help you understand the system. You are ALWAYS welcome to use your own representation. Listing agents don't own you. That is different than how your agent gets paid. Your buyer agent, if they aren't a member of the MLS isn't "entitled" to be paid by the listing agent. That is just legal fact. Doesn't matter if you agree with it or not, but that is the legal fact. The MLS IS the legal contract to pay buyer agents by listing agents. If your buyer agent isn't a member there is no legal agreement for payment.
Your buyer agent can always ask, but the listing agent isn't legally bound to pay them unless they address that in their listing agreement directly. It is just another step in the negotiation process for using a non-MLS agent.
So where does it say to the seller - who is actually paying the commission - that no buyers agent will be compensated unless they are a member of the MLS? isn't that important? aren't only about 1/3 of all licensed agents members of the mls? that's what a broker told us... we were also told that more and more agents are opting to NOT be Realtors or pay mls dues. that's why this agent can pay 35% back...
So where does it say to the seller - who is actually paying the commission - that no buyers agent will be compensated unless they are a member of the MLS? isn't that important? aren't only about 1/3 of all licensed agents members of the mls? that's what a broker told us... we were also told that more and more agents are opting to NOT be Realtors or pay mls dues. that's why this agent can pay 35% back...
I think the broker that told you that is full of BS. Most real estate agents belong to the MLS because it makes doing business easy. Very few agents are non-members. I'd bet 95% of agents belong to an MLS.
Being a REALTOR® is different than belonging to an MLS though. 82% of MLS's are run by REALTOR® boards and require membership. The rest, like mine, do not require you to be a REALTOR® to be a member of the MLS.
edit: I should say very few active agents are non-members of the MLS. Many agents have a license but don't actually practice real estate so they aren't members of the MLS. They can be referral agents or keep it "just in case."
So where does it say to the seller - who is actually paying the commission - that no buyers agent will be compensated unless they are a member of the MLS? isn't that important? aren't only about 1/3 of all licensed agents members of the mls? that's what a broker told us... we were also told that more and more agents are opting to NOT be Realtors or pay mls dues. that's why this agent can pay 35% back...
Nowhere is a non-Realtor promised a buyers agency commission. Not one cent. Nowhere. The agent needs to negotiate their commission.
1/3 may not be Realtors. It is cheap to keep a license alive, for people who work as investors, or who are sitting on the sidelines for a few years while raising kids, etc. $40/year, IIRC, plus $110 for continuing education. There are a lot of licenses just sitting around while the license holders are not actively seeking clientele.
Realtor association dues, national, state, and local are hundreds more, not to mention MLS dues. Holding the license but not paying the dues is creditable. One can resume Realtor membership at any time.
So, it is actually quite reasonable for the non-member to forego the compensation offered to Realtor-members who pay to support the MLS and NCAR infrastructure.
And the compensation that may be earmarked for the member doing their work for them.
Edited to add:
It is also worth noting that many or most commercial agent licensees are not members of NAR, since they work in a widely divergent arena. Still regulated by NC Real Estate Commission, but they don't need MLS and many don't join NAR where the greatest focus is on residential real estate.
And I agree that many more licensees are NCAR membvers and MLS members than 1/3.
Last edited by MikeJaquish; 09-11-2012 at 03:18 PM..
Let me ask you this question then: If I am a seller and sign a listing agreement that says you will offer a buyers agent a commission of 3%, how can you justify denying an agent that commission if they bring in an offer from a buyer? Keep in mind you, as the listing agent, didn't do anything but maybe show the house. The buyer requested the showing or visited it on their own.
Does not matter that the agent isn't a "Realtor" or member of the MLS or have a "code key" or whatever. Says nothing about that in the listing agreement.
Nowhere is a non-Realtor promised a buyers agency commission. Not one cent. Nowhere.
I have an exclusive right to sell listing form in front of me provided by a company that wants to list my house. No where does it say that you have to be a Realtor or member of any MLS to get a buyers agent commission. Show me your form for proof of your statement.
Let me ask you this question then: If I am a seller and sign a listing agreement that says you will offer a buyers agent a commission of 3%, how can you justify denying an agent that commission if they bring in an offer from a buyer? Keep in mind you, as the listing agent, didn't do anything but maybe show the house. The buyer requested the showing or visited it on their own.
Does not matter that the agent isn't a "Realtor" or member of the MLS or have a "code key" or whatever. Says nothing about that in the listing agreement.
How do you know that the listing agent used a form that spelled it out? Most listing agreements just list a fee without a split designated in them. Then it is up to the listing agent to set the fee on the MLS. I know I don't use the available listing agreements. I have my own. Just because NCAR has one doesn't mean that agents use it.
The listing agent didn't not do anything. Depending upon the property they may have staged it, done open houses, created flyers, video, professional photos, broker tours, etc. They could have shown the property to 20 other buyers. Who knows. That is doing something. Just because they didn't do something specifically for you, it doesn't mean they aren't doing anything.
Agents put the fee on the MLS with the expectation that the buyer agent will be taking on certain tasks. If they need to do more than expected because your agent doesn't have access, that's fine but they might want to keep a larger share to compensate them for their time.
The Texas contract specifically addresses non-members and what the agreed upon payment would be. I usually put 1% as that would equate to higher than a typical referral fee to just pass the buyer off so I can finish the work. A non-member doesn't have access to the forms. The non-member doesn't have access to the lockbox. The non-member doesn't have access to the MLS in order to pull up sales history in order to know what to write an offer for (Texas is a non-disclosure state so sales prices are not public record)...
Non-members chose to not be members, and therefore they chose to not abide by the laws that govern how the payments are structured. In the REALTOR® Code of Ethics, Article 3 says, and I summarize, Cooperation isn't an obligation to Compensation. The REALTOR® listing agent is under no obligation to compensate your non-member agent.
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