Rental Basics in 10019>Question Details

Elena Ravich,…, Real Estate Pro in New York, NY

Is this common that OPs are paid to a listing broker only if there was no other broker involved?

Asked by Elena Ravich, Esq., New York, NY Sat Oct 29, 2011

My client was interested in a rental listing that some other broker had as "NO FEE" on Streeteasy, and they agreed to co-broke on it. I assumed that if it was posted as a NO FEE, this broker is getting paid by the L, and I will collect my own fees, and can charge my client a smaller commission. However, after showing the apartment the listing broker told me that the owner pays their fee only if they directly bring a client, and when another broker brings a client, the client has to pay a fee, which will be split between 2 brokers. However, a rental application is on the listing broker form that only mentions them and does not mention my firm anywhere, so that the landlord has no way of knowing, if this person came directly from the listing broker or through another broker. I do not want to assume anything and am just wondering if this is a typical situation when the landlord pays OPs only on the condition that there is no other broker involved and the client does not pay commission.

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Michal Arvatz’s answer
Elena Sound very odd,
It may be possible that the other broker has that kind of arrangement with the LL. but in my opinion... not likely. And if the other agent is collecting the OP from the owner yes you can COF.

A few things to keep in mind on your end, first did your client sign a fee agreement with you?
if he did you should be protected, otherwise not!
Second, why your name is not on the lease? OP or not, no matter what's the arrangement with the LL. if you are not named as the other agent on the lease you are not likely to get any part of the OP!

I strongly suggest that you get your broker involved before its too late.
Hope all works out well for you, Good Luck

Michelle (Michal) Arvatz
Licensed Real Estate Sales Person
Sales, Rentals and Short Term (Relocation) Furnished Rentals
REBNY Member
MA.daya.NYC@gmail.com
917.701.7082
917.701.7082
0 votes Thank Flag Link Sat Oct 5, 2013
BEST ANSWER
Hi Elena. Something sound hinkey here. I'll agree with the responses below. Yes, the CYOF is what most listing brokers would do if they are offered the fee from the LL. The other thing is, I also would follow up on Debra's suggestion. If this broker doesn't want to play ball and he was unclear about you getting your own fee, I would check into the ownership. If it is an open listing you can do a bit of research, find out who the LL is and go to him directly. I can tell you without fear of contradiction that the LL want a paying tenant in place and he probably doesn't care a bit about who brings him one. Good luck.
1 vote Thank Flag Link Sun Oct 30, 2011
Sounds fishy...just ask the question and get it in writing/email. Make sure you are present at the Lease Signing with your client!! THEN discuss AND review!
Good Luck,
Chris Moseley

Christopher Stokes Moseley
Senior Executive Vice President
Licensed Real Estate Associate Broker
RUTENBERG
212-203-8722 mobile office
2 votes Thank Flag Link Sat Oct 29, 2011
Thank you very much everyone for responding - you answers are very helpful! This is their exclusive listing and the listing firm is not a member of REBNY - they don't have to share listings & only posted on Streeteasy and couple other sites as a NO FEE rental. There is no way for me to contact the owner directly until the lease signing (it is a small owner, an LLC and it is hard to locate him) - so I can't ask what his arrangement with the listing broker is, if he pays them OPs and on what terms. I don't mind sharing the fees but just want to make sure it is a fair 50/50 co-broke.
1 vote Thank Flag Link Sun Oct 30, 2011
Elena Sound very odd,
It may be possible that the other broker has that kind of arrangement with the LL. but in my opinion... not likely. And if the other agent is collecting the OP from the owner yes you can COF.

A few things to keep in mind on your end, first did your client sign a fee agreement with you?
if he did you should be protected, otherwise not!
Second, why your name is not on the lease? OP or not, no matter what's the arrangement with the LL. if you are not named as the other agent on the lease you are not likely to get any part of the OP!

I strongly suggest that you get your broker involved before its too late.
Hope all works out well for you, Good Luck
0 votes Thank Flag Link Sat Oct 5, 2013
I agree with the prior posts.
This agent seems to be confused as to what a cobroke is and how commissions should be split in that case.
0 votes Thank Flag Link Thu Jul 18, 2013
No it's not on OP's the Listing agent is paid by the Landlord and can
share it with the renting agent or can let you know that you collect
your own fee.

Regards,
Marco Gomez
NY State Licensed Associate Broker
Keller Williams Landmark II
917-734-2012
marco.gomez@gmail.com
0 votes Thank Flag Link Thu Nov 3, 2011
Elena,

Shady it may be, it sounds like this agent wants to double dip. Just an FYI, if they are not part of REBNY, I don't believe they need to co-broke with you if they choose not to. Unless it is stipulated otherwise in their listing agreement (which you probably won't get your hands on).

The entire logic doesn't work. He/she is already covered by the landlord, it has nothing to do if it's one broker involved or two. If this is the case, then you'd be splitting your portion with him, and he would split his portion with you (at the end, this would equal to you both collecting your own fee).

As for CYOF, this agent would not advertise this on StreetEasy or other sites, he's looking to have a direct deal, not to co-broke. Tenants understand No Fee, Reduced Fee, but not CYOF that's Real Estate Talk.

Let us know what you end up doing.
0 votes Thank Flag Link Mon Oct 31, 2011
I have never heard of this scenario. I did represent a bunch of Exclusives in a few buildings last year with the down rental market and in all cases did CYOF and did collect my OP from the Landlord. They were all other co-broked with other brokers clients who paid them whatever they agreed on. I took no part of it and was not involved. So YES seems shady get it in writing and still make sure you go to the Lease signing with your clients and hopefully the LL is there - the other broker could be collecting an OP as well as 1/2 your fee. Trust no one. Good Luck.
0 votes Thank Flag Link Sun Oct 30, 2011
No, no no. If it's an OP, then that agent gets paid by the landlord. You collect your own fee that has nothing to do with that. You owe the other agent nothing. If it's an open listing and the owner is willing to pay the fee to any agent, then find out how to do things directly and cut out any other agents.
0 votes Thank Flag Link Sat Oct 29, 2011
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