Active purchase contract, Realtor changes brokers (new agent, commission, accept, agreement)

[Lovehound]

Another topic stated: "... the agency relationship to the client would survive an agent's change of brokerage."

1. Friend buys house from builder that is currently under construction, represented by Realtor X who works for brokerage Y.

2. Realtor X and brokerage Y terminate relationship.

3. Assuming quote is correct, purchase contract stays with brokerage Y.

4. At present time house has not yet been completed and purchase contract is still pending.

Question: What happens to the commission to Realtor X as stated in the purchase contract? Does Realtor X still receive commission, or did the severance of brokerage arrangement void the commission?

[Elke Mariotti]

Originally Posted by Lovehound

Another topic stated: "... the agency relationship to the client would survive an agent's change of brokerage."

1. Friend buys house from builder that is currently under construction, represented by Realtor X who works for brokerage Y.

2. Realtor X and brokerage Y terminate relationship.

3. Assuming quote is correct, purchase contract stays with brokerage Y.

4. At present time house has not yet been completed and purchase contract is still pending.

Question: What happens to the commission to Realtor X as stated in the purchase contract? Does Realtor X still receive commission, or did the severance of brokerage arrangement void the commission?

The decision rests with the Broker where the agent had their license when the listing was taken.
Some Brokers won't release listings, some on a case by case basis, some will offer reduced commission to original listing agent, some agents arrive at an agreement before they leave, etc.
Short answer: it depends

[Lovehound]

"it depends" -- I can accept that.

Realtor X is the buyer's agent for my friend. I presume seller's agent is builder's agent or builder.

Problem is that my friend referred me to Realtor X from whom I purchased 4 properties, my friend has now purchased 6 properties, Realtor X handled 2 successful rentals for me, but due to what I characterized "unethical conduct, conflict of interest, directly violating client's orders" (me), broker Y fired Realtor X and now my buddy is very upset with me.

And to make it worse, my friend rents a house to Realtor X. I blame it all on Realtor X, and of course I wasn't the person who fired Realtor X, it was the broker, but buddy is still upset with me.

For the record, I argued with broker Y and asked him to please not fire Realtor X, and I truly hope she didn't lose the commission.

And making matters worse, Realtor X is blabbing details of my transactions to my buddy, and adding her own spin. I told buddy I would forward relevant emails but he declined.

We've been best friends for a dozen years. I hope the unethical conduct of Realtor X didn't ruin my friendship with my buddy.

[Jkgourmet]

Sounds more like a topic that should be in the relationship forum instead of a real estate forum.

[gv28]

LH: You are talking about the disposition of the processing of the Buyer side,
not the Listing side, as was answered.

Your actual question does not involve “Agency”.

To answer your question:

It is the Broker that “owns” the side of the contract.
however
In its simplest terms, typically when Buyer’s Agent X moves their license to another Broker, after bringing a contract to bilateral but before closing, first Broker (Y) allows same agent to work the contract through to close and pays agent without any change.

Occasionally Broker will assign the processing of the contract to another in-house agent and give that agent a small part of the commission. Also if agent did not put their license with another Broker, then Broker Y must give the task of managing the contract to another agent or himself.

In your case though, if the Broker ‘fired’ the agent which is extremely rare because each agent makes money for the Broker, the Broker probably is going to temporarily assign the processing to a new agent.

Broker is going to have to pay first agent some money in any event.

Your friend should speak to the Broker and confirm who it is that is helping him through to the closing of the contract. Your friend should not worry about the commission.

[Lovehound]

Thanks gv28.

He's not the one worrying about the commission. I am. I didn't get Realtor X fired -- X self-did it -- I just really feel bad about the whole thing and hoped at least Realtor X would not lose the commission. I pleaded with broker Y to not fire Realtor X, even though X had it coming, which is what he said.

X was also ordered by broker to not discuss MY business with anybody else, and I specifically gave him my friend's name as a fellow investor, but MY friend knows all about MY business, and I didn't tell him. So Realtor X is still not following NAR code of conduct.

But I would still feel bad if Realtor X does not make commission on my buddy's purchase. I'm not the kind of person who harbors ill will.

If I were that kind of person I'd call broker Y back and tell him my investor colleague knows all about my confidential information, and bring down a whole new storm.


ETA:

"Also if agent did not put their license with another Broker"

Said Realtor was working at a new brokerage a few days later. At least I don't have to worry about X in the street.

[2bindenver]

The pending stays with the brokerage. The licensee will probably be licensed within a day with another brokerage.

Whether the licensee gets paid is per the independent contractor agreement.