Replies to This Discussion

Permalink Reply by Bryant Tutas on February 5, 2012 at 3:10am

xx

Permalink Reply by Marygrace Liparoto on February 5, 2012 at 3:32am

I agree with Bryant.  There is a process.  Let and the commission goes in escrow while you file a complaint with the board.  It's per MLS. They could have stated 50/50 of short sale lender approved commission in the MLS, but if they didn't sounds like listing agent needs to take the hit.

In any case, they can't hold up the closing over it.

Permalink Reply by Eric Middlebrook on February 5, 2012 at 3:32am

close the transaction first then go after them for the higher commission.

Permalink Reply by Chuck Wartman on February 5, 2012 at 3:32am

Im glad i did work out (or looks like it will). Im curious though, what does your office pay out to cooperating agents on short sales?

Permalink Reply by Julie Alibrando on February 5, 2012 at 3:40am

They have no right to cancel a closing, they need to remember that the transaction is between the buyer & seller, not brokers & agents.  This is a perfect case to take to your board for mediation.  They might want to read the Code of Ethics, Standards of Practice, Article 3, Standard of Practice 3-2.  I am on our professional standards committee here in Wisconsin, and something like this would positively come before us!  Shame on the agent, shame on the broker.  

Permalink Reply by Debbie Vesce on February 5, 2012 at 3:42am

You should always check with your broker and board when something isnt right. I question anything that I never heard of before. You cant make your own rules in this business.

 

 

Permalink Reply by Meli Van Natta on February 5, 2012 at 4:01am

It's very simple, they have to pay what was stated in the MLS unless there was a prior agreement. For example, if they put in the MLS that the commission would be lowered if the bank lowered the commission, then they can change it. They cannot change it simply because they want to. your solution is to go ahead and do whatever is necessary to close the transaction so that your buyer isn't  harmed.  Then take the dispute to arbitration at your board of Realtors. You will win!

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 5, 2012 at 4:15am

Most MLS' are the same based on NAR Core MLS Rules - Our MLS Rules state: 

 

7.18.2 Lender Approval Listings

Compensation offered through the MLS to cooperating brokers on listings which require lender approval (commonly referred to as "short sale" listings) is for the amount published therein unless the listing broker indicates on the MLS the following: (a) the fact that the sale and gross commission are subject to lender approval; and (b) the amount or method by which the compensation offered through the MLS will be reduced if the lender reduces the gross commission. This section does not allow an additional reduction from the commission offered for items such as a short sale negotiator fee or other administrative costs of the transaction. Any reductions from the commission offered for such items should be factored in as a reduced amount the listing broker initially offers to a cooperating broker and may not be made a condition of the offer.

 

It looks like you got the issue corrected, but always know the Listing Agent MUST put in the MLS agent remarks, (b) the amount or method by which the compensation offered through the MLS will be reduced if the lender reduces the gross commission.

 

Best of luck !

Permalink Reply by Bryant Tutas on February 5, 2012 at 4:53am

Thom, Just for clarity; 'It looks like you got the issue corrected, but always know the Listing Agent MUST put in the MLS agent remarks, (b) the amount or method by which the compensation offered through the MLS will be reduced if the lender reduces the gross commission."

This only applies if the listing broker chooses to reduce the co-broke if the commission is adjusted by the lender. The listing broker can sill leave this clause out and just guarantee to the co-broke. That's what I do. No games

My personal opinion is that this clause is pure foolishness and destroys the integrity of the MLS. Co-brokes should be paid as offered in the MLS. I see co-broke in my area of as high as 5% on short sales then they conveniently add the above clause. that should not be allowed.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 5, 2012 at 5:04am

Bryant -

 

I absolutely agree with you.  I believe the clause in the MLS Rules is a safety net for those unknowing agents on the buyer's side who get taken by LAs who want to reduce commissions whether the lender reduces it or not.

 

Like you, I put the Co-op amount in the MLS that I am offering.  But, I still use the recommended language as a safety net just in case we have an unreasonable lender.  I've even increased the co-op amount when one agent brought three buyers and closed on three of my short sale listings over a 4 month period!

 

After sitting on Pro-Standards as a Board of Director member for reviews of commission disputes, the number of disputes for this issue is increasing - the language in the MLS becomes a big "Factor".

 

 

Permalink Reply by Julianne Thorne on February 5, 2012 at 5:27am

It is very important to close for your buyer's sake. You do not want to jeopardize your client's transaction. If this commission structure was changed in the manner suggested, your broker and you should file a grievance with your local board of Realtors immediately following closing. Make certain you have your documentation available. Making a change change like this is considered a Code of Ethics violation. Your financial remedy should be resolved by the Grievance Committee at your local board.

Permalink Reply by Dale Dresel on February 5, 2012 at 5:34am

never never let a dispute with another agent jeopardize the transaction, Close the Sale, take all of your documentation and go file a claim with ur local Board. Make sure you involve your broker in this discussion. 

Your broker and the other broker may be able to solve the problem without going to the board. 

Besides some commission is better than no commission.

Good luck

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