What is your take on this, I have noticed a particular agent in my area write the following in the MLS Remarks: "50/50 COMMISSION SPLIT WITH THOSE OFFICES THAT DO THE 50/50 SPLIT" is that really allowed?
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Our MLS Rule for Southern CA is as follows:
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.
Notice item "b" - within the MLS (Agent / Private Remarkswe have to specify the METHOD of how the compensation will be derived. For example, a "Splitting the commission 50/50" is NOT the same as "Any commission reduction by the Lender will bereduced equally to both Listing and Selling Brokerages".
No matter which method the Listing Broker decides to offer, they have to spell-out that method in the MLS.
I just saw something similar in our MLS. It shows 2.5% commission being offered on a short sale but says "We split 50/50 with reciprocating agents" Seems a bit vague and not as direct as saying "with offices that split 50/50"
Very interesting, I actually like it! Can't imagine why someone who splits 50/50 who have a problem with it. Can't imagine how someone who pays out 40% would have a problem recieving 40% on a short sale.
Is not whether agents have a problem with it, would this even be legal?
I understand that but again, I would not have the first issue with seeing this in MLS and can not imagine why someone who pays 50% co op or pays 40% co op would have a problem with it. There are a few in my area that pay 40% but on every deal that I do with them, out of professional courtesy, they paid me 50%. I actually help negotiate a few for agents who pay 40% and guess what, they put a 50/50 split on the listing agreement and were advertising a 40% co broke in MLS.
Agree, I don't see anything wrong with the % someone is going to pay whether is 50-40-30% because agents are able to see what the commission will be before making the offer, but I find it misleading writing such remarks, I did make a call and found out they cannot do that. Each area could be different. Thanks Jeff
I would imagine my MLS rules would prevent it too.
Tavo. An offer of compensation can usually vary based on the agency relationship of the buyer's agent to the buyer but I believe basing a split on how the other office splits their commission could be a Anti Trust Violation. You should run this by an attorney in your area.
I agree, it sounds that such wording would be border line of Anti Trust Violation. If all companies could write such remark and advertise 4% split and than turn around and only pay 2 or 3%, how would you even regulate or come to such decision as to what percentage to pay rather than what listing agent advertised? I will contact an attorney to make sure but if no other company is doing this it must be for a reason.
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