Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hi, I sold my home which I listed with a flat fee agent offering 3% to buyer agent. The buyers came with an agent who agreed to reduce her commission by .5% in order to make their offer work for me. She is not denying that she agreed to the reduction, but is saying the listing agent now owes her the difference since the MLS was not changed to reflect the negotiated commission. She has put in a request for arbitration against the listing agent who made no commission. She is lying in her statement saying that I told her the commission offered on the MLS was a mistake after I initially agreed to their offer, which is completely false. In fact, I countered their initial offer by telling her what my terms and bottom line price was and that I had another offer on the table for the same, which was at 2.5% commission. She needed to match it or I needed to increase the purchase price to make up the difference. She agreed to match it and sent me a contract the next day.
Is it normal practice to change the offered commission in the MLS after it is under contract and shows as pending? If the listing was changed to match her reduction then where is the negotiation?
Commissions should not be negotiated through purchase contracts, as the commission is a separate contractual agreement. The MLS acts as a contract between brokers for the commission offered. Changing the commission in your purchase contract does not change the MLS contract. It should have been changed in the MLS if the brokers agreed to a reduction.
The commission owed is the commission offered in the MLS as of contract acceptance. I always include a copy of the MLS listing showing the commission amount along with my offers so there is no misunderstanding about what is owed.
Out here we have a notice of compensation form that gets signed by all parties. If both of the brokers signed the agreement of compensation, then, at least out here, it doesn't matter what the MLS says because a new contract was executed that overrides the other contract. It just depends on whether or not they have that where you are.
I also agree that commission negotiations don't belong in purchase and sale agreements. Separate contracts are written for those.
Out here we have a notice of compensation form that gets signed by all parties. If both of the brokers signed the agreement of compensation, then, at least out here, it doesn't matter what the MLS says because a new contract was executed that overrides the other contract. It just depends on whether or not they have that where you are.
I also agree that commission negotiations don't belong in purchase and sale agreements. Separate contracts are written for those.
Right. That agent sounds like an idiot with an ax to grind. If she agreed to reduce her commission she should shut her mouth and move on. *This is just my opinion and has no bearing on this specific case nor is it legal advice*
Right. That agent sounds like an idiot with an ax to grind. If she agreed to reduce her commission she should shut her mouth and move on. *This is just my opinion and has no bearing on this specific case nor is it legal advice*
Agree. Although technically she may be owed the extra commission, she should stick to what she said.
Agents can't put their welfare above their clients. She might have just agreed with the reduction to not ruffle feathers and to get buyer and seller to close. After the fact, she has every right to go after the commission that was contractually offered in the MLS. YOU, as the seller, were not offering the commission, the listing agent was.
It's in black and white in the Code of Ethics. This is not *legal* advice, but I sit on the Professional Standards committee for the State of Texas, and that's a clear violation the buyers' agent has every right to go after.
You should not be involved with this unless called to testify at the arbitration on behalf of your agent. The commission contract is between brokers, not agents or principals of the sale. This is a separate contract and while is generally calculated based upon the sales price of the property transaction, is a completely different transaction.
Your agent should have had their brokers reach an agreement before presenting the offer since a commission reduction was essential to the deal. Absent that foresight, they must now reach an amicable agreement based on the verbal agreements between the agents involved.
My advise is to not loose any sleep over it. Learn from the experience and help guard your next agent from this type of misadventure if they are not already wary, and assist your recent agent in arbitration if they request it. Otherwise, get on with your life and let things work themselves out since you are not actually a party to this disagreement.
Agents can't put their welfare above their clients. She might have just agreed with the reduction to not ruffle feathers and to get buyer and seller to close. After the fact, she has every right to go after the commission that was contractually offered in the MLS. YOU, as the seller, were not offering the commission, the listing agent was.
It's in black and white in the Code of Ethics. This is not *legal* advice, but I sit on the Professional Standards committee for the State of Texas, and that's a clear violation the buyers' agent has every right to go after.
I disagree. If she agreed to take less and admits as much, I think the listing agent wins it. Her agreement to take less overrides what is on the MLS sheet.
I disagree. If she agreed to take less and admits as much, I think the listing agent wins it. Her agreement to take less overrides what is on the MLS sheet.
Technically, unless she is a broker, her agreement is irrelevant. If she did not get consent from her broker there is a problem. The brokers involved are the only ones that can change the MLS agreement on commission. The MLS agreement is a broad contractual agreement imposed on all MLS participating brokers and, by extension, their agents and can only be modified by consent from the brokers involved.
I agree that the broker involved, be it her or someone else, SHOULD drop the complaint and if upset about it needs to take it up with the selling agent to avoid the issue in the future by not making these agreements without broker consent.
Technically, unless she is a broker, her agreement is irrelevant. If she did not get consent from her broker there is a problem. The brokers involved are the only ones that can change the MLS agreement on commission. The MLS agreement is a broad contractual agreement imposed on all MLS participating brokers and, by extension, their agents and can only be modified by consent from the brokers involved.
I agree that the broker involved, be it her or someone else, SHOULD drop the complaint and if upset about it needs to take it up with the selling agent to avoid the issue in the future by not making these agreements without broker consent.
Touche! You got the point from me there. The broker is indeed the one that makes the call. Of course I stand by my original argument that the agent should be the one to eat it if she agreed to it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
