Is Sar a Realtor/licensee or a Home Buyer? If he's a "Real Estate Broker" then why doesn't he fill his profile out correctly?

Sun May 25 2008, 18:29

The commission is for copperating members. I believe there is a form on CAR that will protect....cooperating brokers commission or something to that extent. The seller/bank has nothing to do with cooperating brokers agreements.

Sun May 25 2008, 15:59

If I were you I would call the DRE who should be the authority on this. Their website is: www.dre.ca.gov

Sounds unethical to me but I don't know if it is illegal or allowed or diallowed by the Department of Real Estate. Anyway, I think it is understandable that you are upset. I would be too.

Good luck,

Sarah Dupree

Sun May 25 2008, 14:38

We have one home on our website which is already bank approved short sale. Nice spot and great schools. You can see it on our site or happy to assist you and glad to cooperate in getting your client satisfied and sharing commissions. Janice and Doug Davidson, Lake San Marcos CA.

Thu Apr 17 2008, 11:54

Jed, please re-read my response to this question. I responded with another question and then a statement that if you are licensed in California you can write in California. What part of that exactly is wrong? Is my question wrong? Is it not true that a California licensee can write an offer in California?

Thanks,
Dot

Sat Mar 29 2008, 20:04

As I understand it, her right to get a commissio is dependent upon her contract with the bank. Your right to get paid a commission is dependant upon your contract to share a commission through your MLS. I believe if you are not a member of the local MLS she does not have to share it with you.

Writ an offer and include an escrow instructions that specify that you are entitled to get the commission. Make the deal conditional upon the bank agreeing to your getting the commission.

Sat Mar 29 2008, 17:22

Ethical or not, I would write the offer and include an addendum clarifying the commission owed to you. What can it hurt? Make sure your buyer is aware of the situation and that if they are unwilling to pay a comission you will need to arrange to have your buyer compensate you. Similar to purchasing a FSBO.

Sat Mar 29 2008, 14:46

The REALTORS board and MLS are two different entities. Sar, to me, it seems like this person is asking if you are a REALTOR. Many of us have to update our REALTOR "Code of Ethics" training. I had to do mine a few months ago. There is an area in the code that Article 3 to be exact, that needs to be reviewed. It indicates that agreement to coop, does not necessarily mean compensate. I hope this person is not trying to use this as a reason to not pay you for your services. I think that would be considered unethical, which is totally against REALTOR code. In order for us to make it through the market, we all need to learn negotiating and cooperating for the good of the whole industry. Sometimes with bank owned properties, the commissions are reduced. In my opinion, if the bank wants to sell, and you have an active license and qualified buyer, there should be no problem. Cover your tail with this agent. If listed, print out the entire listing. With your offer, submit your commission request. Here we have an "instructions to closing attorney" sheet that must be signed by both brokerages. Hopefully she is just new to bank onwed properties. I am including the aforementioned article for your review.
Article 3
REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker. (Amended 1/95)
Standard of Practice 3-1
REALTORS®, acting as exclusive agents or brokers of sellers/ landlords, establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. Terms of compensation, if any, shall be ascertained by cooperating brokers before beginning efforts to accept the offer of cooperation. (Amended 1/99)
Standard of Practice 3-2
REALTORS® shall, with respect to offers of compensation to another REALTOR®, timely communicate any change of compensation for cooperative services to the other REALTOR® prior to the time such REALTOR® produces an offer to purchase/lease the property. (Amended 1/94)
Standard of Practice 3-3
Standard of Practice 3-2 does not preclude the listing broker and cooperating broker from entering into an agreement to change cooperative compensation. (Adopted 1/94)
Standard of Practice 3-4
REALTORS®, acting as listing brokers, have an affirmative obligation to disclose the existence of dual or variable rate commission arrangements (i.e., listings where one amount of commission is payable if the listing broker’s firm is the procuring cause of sale/lease and a different amount of commission is payable if the sale/lease results through the efforts of the seller/ landlord or a cooperating broker). The listing broker shall, as soon as practical, disclose the existence of such arrangements to potential cooperating brokers and shall, in response to inquiries from cooperating brokers, disclose the differential that would result in a cooperative transaction or in a sale/lease that results through the efforts of the seller/landlord. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase or lease. (Amended 1/02)
Standard of Practice 3-5
It is the obligation of subagents to promptly disclose all pertinent facts to the principal’s agent prior to as well as after a purchase or lease agreement is executed. (Amended 1/93)
Standard of Practice 3-6
REALTORS® shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation. (Adopted 5/86, Amended 1/04)
Standard of Practice 3-7
When seeking information from another REALTOR® concerning property under a management or listing agreement, REALTORS® shall disclose their REALTOR® status and whether their interest is personal or on behalf of a client and, if on behalf of a client, their representational status. (Amended 1/95)
Standard of Practice 3-8
REALTORS® shall not misrepresent the availability of access to show or inspect a listed property. (Amended 11/87)

http://www.realtor.org/rmoquiz2.nsf/EthicsQuiz

Sat Mar 29 2008, 12:58

Sar,

Let us know how this turns out for you

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate

Sat Mar 29 2008, 12:18

Dot Chance is wrong.
Coop is an agreement between brokearages in an MLS. If that agreement doesn't exist than there is no agreement and Sar needs to put one in place at the same time as the offer and have his clients agreement that his offer is contingent on acceptance of the CBC or Sar should have a buyer broker agreement in place.
Sar also doesn't say if he is a Realtor or not only that he is a broker. If he isn't a Realtor than ethics has very little to with the situation. Realtors and realtors alone in this industry abide by a code of ethics. For non Realtors it's all about the contract. That's the first lesson that you learn in the commercial real estate market.
Sar your best bet is a buyer broker agreement. Totally enforcable, between you and your client and not subject to anyone elses negotiation.

Sat Mar 29 2008, 10:48

Hi Sar,

If it specifically says on the MLS (Sandicor I assume) that commission will if you are a member of the board then that's what it is. However , like Tony said, it is not limited to the local board but also to cooperating boards, you should be fine. I just cannot understand agents who are still having this strict guideline considering that the market climate has totally changed. This commission instruction is not written on stone. The broker can change "self-imposed" rule anytime. And for your own sake Sar, please join the board near you because this is the best way to protect yourself as a professional real estate broker.
Good Luck,
Laarni

Sat Mar 29 2008, 05:23

Hi Sar,

The offer of compensation to cooperating brokers posted in the MLS is for MLS broker participants and also members of reciprocal MLS systems. So I believe what the listing agent told you is ethical.

If your MLS has a reciprocal relationship with SANDICOR, then you should be fine. If not, you can present the CAR CBC form prior to sending over your offer so the commission aspect is already negotiated.

I looked on the SANDICOR website and zip code 92223 is included in the "California Reciprocating Agreement" for posting listings, searching the MLS, or getting lockbox services etc so I don't see why that wouldn't apply to the cooperating broker compensation also.

Having dealt with REO properties myself, I have seen the bank's listing agreement specify terms such as "commission payable on net sales price" or no commission payable to cooperating broker if buyer is a licensed agent. Both of those criteria violate our MLS rules, but that doesn't mean there aren't listing agents trying to employ them, nor workarounds to avoid them...

Tony

Fri Mar 28 2008, 22:27

Why should it matter if you are a member of her local board? If you are licensed in California you can write in California...

Fri Mar 28 2008, 22:24