Home Buying in 20772>Question Details

Parrotlady, Home Buyer in Kula, HI

My agent just had us sign paperwork that states that we will pay her a flat rate fee of $495 plus MRIS listed compensation what does this mean?

Asked by Parrotlady, Kula, HI Thu Sep 1, 2011

This is a short sale and on a previous contract for another property our broker/agent told us that the MRIS listed compensation statement did not apply to us. That it was to be paid by seller. We crossed thru that statement and wrote in "MRIS listed compensation to be paid by seller" but this time we forgot to do that

It says that compensation shall be deemed to have been earned by broker and shall be due and payable to broker if:
1. During the term of this agreement or any extension thereof Buyer or any person/entity acting on buyers behalf executes a written agreement to purchase or lease any property through the efforts of anyone including buyer

2. Buyer defaults or voluntarily agrees to terminate a sale or buyer breaches this agreement.
Compensation due to broker shall be paid at settlement as a convenience to buyer. Buyer acknowledges and agrees that settlement on the property shall not be a condition precedent to buyer's obligation to broker as herein provide

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Answers

14
Please ask the broker/manager of the company "your" agent works for. Discussing commissions between real estate agents is an anti-trust violation and strictly forbidden.
1 vote Thank Flag Link Thu Sep 1, 2011
I suggest you contact your agent if you have any questions concerning any paperwork that you signed. If your agent is not able to answer your question, contact the broker.
0 votes Thank Flag Link Mon Jan 13, 2014
An agent can charge a variety of fees as stated in the buyer's agreement or as written in. The key is to make sure you understand the language prior to signing the agreement.

First, the seller is responsible for paying the commission fee (compensation listed in the MRIS) of your agent. You should ask your agent (buyer's agent) is there any reason the seller is not paying his fee. If the agent confirms that the seller is not paying the fee, then the agent is allowed to ask the buyer for payment for his or her services. This however, should be explained, so that you have an understanding of what is going on. The fee is still negotiable, even if the agent has a certain fee that he or she normally charges.

Second, the flat fee could be an administrative or office fee that is standard among real estate offices. This could also be a retainer or early termination fee. Again, inquire what the flat rate fee is. That's very vague as it doesn't say what the actual fee is.

If you still have questions, speak with the broker about these issues and share your concerns. I'm sure they will work with you because they don't want to lose your business.
0 votes Thank Flag Link Sat Mar 2, 2013
Your fees are negotiable, don't sign anything that you don't agree to or don't understand.
0 votes Thank Flag Link Thu Feb 14, 2013
They are basically charging you an admin fee or brokerage fee in addition to the commission that they will earn and that will be paid by the Seller to them. This will be an added expense to you at settlement. Unfortunately this is a common practice. Our team has opted not to charge admin. fees.
0 votes Thank Flag Link Mon Apr 23, 2012
I didn't see where one person knew what MRIS stood for:
What would you sign something like that?

Probably "MY RESIDENTIAL INCOME SURPRISE"

Good luck and may God bless
0 votes Thank Flag Link Mon Nov 14, 2011
Hello Parrotlady,

yes, it appears to be a brokerage fee and the listed compensation. good luck
0 votes Thank Flag Link Mon Nov 14, 2011
Maryland now requires agents to list an admin fee, if charged by the broker, as part of the compensation instead of a separate or independent charge as was done in the past.

The agent should have covered these items with you. If there is an issue with the agent then you should speak with their broker or office manager.

1. You agreed that buy signing a contract to buy they have fulfilled their duties to get a commission - WITH several exceptions, financing, home inspections, etc. I changed my mind is not an exception to the contract.

2. If you, and not a valid exception, is the reason the contract is broken the broker stills expects to receive their compensation for providing you their services.

Gerard Gilbers
GerardGilbers@mris.com
EXIT Elite Realty
301-277-3948 Office
0 votes Thank Flag Link Thu Sep 1, 2011
Oh no, it does sound like you've agreed to pay the admin fee that certain brokerages will charge, regardless of whether or not you will consummate a sale. I would speak to the manager of your agent's brokerage and see if there's something that can be done about this. Best of luck, Caroline
0 votes Thank Flag Link Thu Sep 1, 2011
First, never sign anything you don't understand. You did it this time. Don't ever do it again.

What it sounds like it means is that you'll pay the "MRIS listed compensation" plus a fee (an administrative charge) of $495.

However, typically the commission ("MRIS listed compensation") is paid by the seller. What often happens is that the listing agent puts one number in. Let's say it's 6%--though of course it's negotiable. Sometimes the lender comes back and only permits/agrees to a lesser commission--say 4%. If there are two agents (listing and buyer's) involved and the MRIS agreement says they'll split the commission, then each would only end up with half of 4% (2%), rather than the expected half of 6% (3%). It MAY be that you've agreed to make up any difference in that commission shortfall.

Or, as you think, it may have obligated you to pay the entire commission.

That's something you must ask your agent.

The language you presented--paragraphs 1 and 2--is pretty standard.. It says (to oversimplify--not a good thing when talking about contracts) that a commission is owed as soon as there's a written contract, but that the commission can be paid at settlement.

Check with your agent for a more complete and accurate explanation of what you've signed and agreed to.
0 votes Thank Flag Link Thu Sep 1, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
You signed something you didn't understand??? You are going to be paying this broker some money. Next time don't sign something you don't understand!
0 votes Thank Flag Link Thu Sep 1, 2011
It is pretty much standard language for a buyer's agreement, but if you have questions, you shoud talk to the agent or the broker.
0 votes Thank Flag Link Thu Sep 1, 2011
It means she or her brokerage is charging you an admin. fee. in addition to the compensation offered in MLS. You will have to pay at settlement. Don't even get me started on admin. fees. I feel that the commission we are paid should be our full compensation and never have and never will charge a "flat" fee or admin. fee. You might be able to negotiate this out if it wasn't in your last agreement.
0 votes Thank Flag Link Thu Sep 1, 2011
call me directly 301-233-6501
most brokers charge a flat fee for 195 - 495 payable to the broker listing the property
for short sales the MRIS offering is paid by the bank - even though you sign a listing agreement saying you'll be paying it
0 votes Thank Flag Link Thu Sep 1, 2011
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