Note 3: Multiple registration services must give participants the opportunity to communicate the possibility of a short sale to other participants. As MLS rules use, short selling is defined as a transaction in which ownership is transferred, the sale price is insufficient to pay the sum of all sales privileges and costs, and the seller does not close enough liquid funds to remedy all defects. Several registration services may, at local discretion, require participants to disclose the short sale if participants know that a transaction is a potential short sale. In all cases where a participant discloses a potential short sale, it must also be allowed to communicate to other participants how a reduction in the gross commission in the registration contract required by the lender as a condition of approval of the sale will be distributed between the listing participants and the cooperating participants. If Participants are permitted to communicate to other Participants how a reduction in the gross commission set out in the Registration Agreement required by the Lender as a condition of approval of the Sale will be allocated between the Registration and the Cooperating Participants, several Registration Services may, at local discretion, require the Registration Participants to write to the Cooperating Participants the total reduction in the gross commission and amount, the compensation to be paid to the cooperating broker will be reduced within ______ hours of receipt of the lender`s notification. All confidential disclosures and confidential information related to short selling must be communicated through special fields or confidential “notes” accessible only to participants and subscribers. (Amended 5/10) M Secondly, the second question is whether it is still a double or variable commission. I would say the answer is also yes. Since the NAR rules talk about disclosing where the identity of the broker creates a differential, the rule should apply regardless of whether the differential applies to all brokerage agents or only to a certain number of agents. But again, it can only be so specific if the broker allows it. Based on your own experience, you became aware of the existence of variable rates through an insider tip. The listing officer, when he told the truth, did not know that the rule existed. Very few brokers follow this specific event.
The best way to ensure that a buyer can balance competitive conditions when planning an offer for a co-broken listing is to ask their agent to determine if there is a variable commission before making the offer. The average number of transactions per agent is low, commissions are substantial, and monitoring is minimal. The type of real estate transaction and the evolution of sales are very fluid and with almost constant negotiations. Both the seller and the buyer want to save costs and are looking for ways to achieve this. Many listing agents will not give up a portion of the commission on either side of a sale. Other agents, probably a much smaller number, will offer a concession on their final commission at the time of registration if they sell the house. It is likely that agents will negotiate a significant percentage of these commission concessions during the actual negotiation of offers. Often, deadlines are written in offers and counter-offers for various reasons. Will the listing agent call a waiting period to return to one or more agents to inform them of the fee adjustment and delay a decision, especially if the payment is likely to double? When you make a “double rate” commission with a seller, ALL agents of the sales brokerage agency must be subject to what you have negotiated as a “double rate” with the seller. Or is it possible to submit the double rate only to the agent who lists the property, but if you separate from another agent in your agency (just like another broker), the commission is what would also be offered to other brokers.
For example, I agree that if I procure the buyer myself and represent him for the sale, I will charge the seller a total of $4,000, BUT if another agent (even from my own agency) buys the buyer, is the total commission $5,000, so I can offer the same split as with another broker? Of course, to disclose this in MLS as a double-rate commission. I believe it must be the entire agency as I usually do this way (because the commission really belongs to the broker), but it`s not clear if it`s possible to do it as a sole agent as long as it`s disclosed. The theory is that if a commission amount does not need to be divided, the agent may offer to do so for less money, not only as an advantage to the seller, but also to his buyer. If you are a buyer who works with a real estate agent and is interested in a property, you may want them to know if other contract proposals are involved and, if so, come from the same real estate agency (designated agent) or from a dual-agency situation where the seller`s agent has the buyer. If so, it is important to check if there is a variable commission in the game, and if so, what is the difference in commission. This requires a simple phone call, email, or text message from your agent to the seller`s agent, and the Code of Ethics requires the seller`s agent to disclose this information. Once a cooperating broker has been informed that a floating rate commission is at stake, they must disclose this critical information to their client before the client makes an offer to buy. .