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Permalink Reply by Christina Conrad on June 20, 2011 at 10:29am

That is correct what Jackie said..that is what we do in our office and we have NEVER had our commission cut.

The Negotiator said:

Now were getting to the solution...

To solve this issue, simply break down the commission into 2 lines (like there are 2 agents) on the HUD. I work with dual agency all the time and never get the commission cut. Lender's don't ask "how many agents involved" because hey only see the HUD and how many lines on the Realtor commission. The key to short sales is getting what you want without "involving" the attention of lenders. Do what needs to be done and get paid. If for some strange reason the lender asks how many agents involved, tell them 2 .. you the agent and your broker! Your broker signed the listing agreement, right? 2 agents.... (but they don't ask)

Bryant Tutas said:

Jennifer. If you ask the negotiator the answer will be 'No". You are probably too late to try and bring another agent in. But if you want to try just change the HUD accordingly and send it to the negotiator for approval. Asking is not the way to go.

 

This is one of the things you learn as you do more and more short sales. The lenders are almost always going to have an issue with paying full commission to a "dual" agent. In the future you'll have to figure out how to get paid, as mentioned in my previous comment, or just don't work with buyers on your own short sale listings. Give them to another agent and take a referral fee.

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Permalink Reply by Napua Lucas on June 20, 2011 at 1:14pm

I just received this today from BofA regarding dual agency commissions.  It was included in their Short Sale Addendum that they want buyer/seller and agents to sign. So are you saying that if we state it is two agents it will go through with no problem even tho' it is a dual agent?:

 

8. Brokers’ acknowledge and agree that there are no Dual Representation. Dual Representation is defined as a single

agent representing both the Buyer and the Seller in the transaction giving rise to the underlying Purchase Contract.

9. Brokers acknowledge and agree that that any misrepresentation or omission may subject the responsible Party to

civil and/or criminal liability.

 

Christina Conrad said:

That is correct what Jackie said..that is what we do in our office and we have NEVER had our commission cut.

The Negotiator said:

Now were getting to the solution...

To solve this issue, simply break down the commission into 2 lines (like there are 2 agents) on the HUD. I work with dual agency all the time and never get the commission cut. Lender's don't ask "how many agents involved" because hey only see the HUD and how many lines on the Realtor commission. The key to short sales is getting what you want without "involving" the attention of lenders. Do what needs to be done and get paid. If for some strange reason the lender asks how many agents involved, tell them 2 .. you the agent and your broker! Your broker signed the listing agreement, right? 2 agents.... (but they don't ask)

Bryant Tutas said:

Jennifer. If you ask the negotiator the answer will be 'No". You are probably too late to try and bring another agent in. But if you want to try just change the HUD accordingly and send it to the negotiator for approval. Asking is not the way to go.

 

This is one of the things you learn as you do more and more short sales. The lenders are almost always going to have an issue with paying full commission to a "dual" agent. In the future you'll have to figure out how to get paid, as mentioned in my previous comment, or just don't work with buyers on your own short sale listings. Give them to another agent and take a referral fee.

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Permalink Reply by Jackie W. McDermott on June 20, 2011 at 1:42pm

Just to recap my dilemma.  I operate in Arizona.  "Consentual Dual Agency" includes every agent in my extended company.  Our company has 4-5 offices.  I am the buyer's agent, but because the listing is from someone else in my company, M&I Bank considers it "dual agency".  There really are 2 actual agents, one for the buyer (me) and one for the seller.  I've never met nor talked with the seller.  But because we have to sign a Consentual Dual Agency Addendum, the bank is treating us as the same.  We aren't thru this yet, so next time we submit our final HUD, I'll have two line items included on the commission, even though both checks will be going to the same company.  Wish me luck.

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