Home Buying in 95829>Question Details

Brian, Home Buyer in 95829

can a real estate agent represent himself get commision?

Asked by Brian, 95829 Wed Jan 20, 2010

Hi all,
I'm a buyer, has real estate license, and in progress of escrow. In the contract, agency section, I put ""my company name" is the agent of the buyer exclusively." is this mean that my broker represents me as a buyer agent? and in real estate brokers states that listing broker agrees to pay cooperating broker (selling firm) in an amount specified in MLS. Now here's the thing. the seller put a paragraph in his addendum "Buyer is an agent representing themselves in ths transaction and hereby agrrees to waive any and all buyer side commission offered by the seller." Now the escrow send me a instruction to pay commission letter "pay commission to "my company" address. agent "my name" for $$$$. I sent them an email and asked to review the addendum but no answer. However, the listing agent said that my broker can get the commision. I"m confused. do any of you have this kind of experience? Thanks in advance for any inputs.

Help the community by answering this question:


Commission is agreed to by the seller and the listing agent/agency. The commission paid to the buyers agent comes out of that agreement. For example a seller agrees to pay X% to the listing agent/agency. That listing agent/agency pays out X% to any buyers agent who brings a buyer and closes the transaction.

Unless you have some agreement or limitation with your Broker, the buyers agent/agency is entitlled to the commission. Should you choose to waive your commission to put the deal together, then that's fine, but your Broker is still entitled to their split that they have with you.

You need to bring this to your Brokers attention and get it straightened out.
2 votes Thank Flag Link Wed Jan 20, 2010
Typical Bank seller shenanigans. They often try this stunt. Some asset managers and their attorneys are "expletive deleteds" Just because they want to rip you off does not make it legal. However, since they are often ignorant that they have no legal right to do that, they will often try to push the issue.

Whoa, I misread the question... You already agreed to let them take your commission and now they are realizing that they shouldn't. Well good for them. It sounds like they are now trying to do the right thing and pay you like they should have agreed to do in the first place. Accept the money. it was yours rightfully all along. Don't let them change their minds again.
1 vote Thank Flag Link Fri Jan 22, 2010
Jim Walker, Real Estate Pro in Carmichael, CA
Unless the MLS listing said something about not offering a selling commission if buyer is a real estate licensee, the seller can't now after you are already in contract change the compensation offered in the MLS. If they are trying to change the commission, it's an issue for your broker and the MLS to deal with as it would affect your broker and would constitute a violation of the MLS rules. The seller owes the commission to the listing broker and the listing broker owes a portion of the commission to the buyer's broker, which means that this is between the listing and buyer brokerages and if the listing brokerage is not willing to honor the commission that was advertised in the MLS listing, then they are breaching their agreement with the MLS. That's my take on this based on the information that you provided.

Good luck,
Ute Ferdig
DRE # 01326917
Ferdig Real Estate Solutions
Web Reference: http://www.themlshub.com
1 vote Thank Flag Link Wed Jan 20, 2010
Ute Ferdig -…, Real Estate Pro in ,
Brian, I had a lot of trouble following your stream-of-consciousness post.

But in general, yes a licensed agent can buy a house for him/herself, and expect the buyer's co-op commission to be paid to their brokerage, and then have that commission split with them.

Talk to your managing broker.
1 vote Thank Flag Link Wed Jan 20, 2010
Alan May, Real Estate Pro in Evanston, IL
Commisions always go through a broker. Did you talk with him/her?
0 votes Thank Flag Link Wed Jan 20, 2010
One legal distinction that is being mixed up here is the contract between the buyer and the seller and the seller and the listing agent. The listing agreement specifies commissions to be paid, and that the listing agent will work in cooperation with other agents in a split. Negotiations of commission are between the listing agent and the seller. Our MLS specifies our cooperating broker agreements. Any amendment to a purchase agreement does not constitute a change to the listing agreement. That would need to be done by a document like the cooperating broker commission agreement.

One other factor to consider though is that my broker's E&O insurance does not cover us when we represent ourselves in a real estate transaction where we are the seller or the buyer. (We have to have someone else 'front' us for our own transactions). You might want to check with your broker, as others have said, but also ask about your e&o insurance is this scenario.
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Wed Jan 20, 2010

As long as there are no exclusions listed, I do not see why not.

If you think about it, even if you are representing yourself, its not like you are not doing the job of the agent. You still research comps, deal with mortgage professional, title etc.

0 votes Thank Flag Link Wed Jan 20, 2010
This same scenario - if I read it correctly, happened to me. I am a real estate agent and I offer to purchase
a property. The seller, thinking, hey I don't have to pay commission as she's an agent already. He counters
taking out my commission and I counter back with a "no, I don't think so". He would have paid an agent the
selling side commission for bringing a buyer. The fact that I "happen" to be a real estate agent should not enter in to the equation, in my opinion, as I'm a Buyer. BUT, they should be looking at bottom line - not who's buying it.
Web Reference: http://www.annaboyd.com
0 votes Thank Flag Link Wed Jan 20, 2010
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