Commission on a short sale was listed in the MLS at 4%. Offer was accepted but listing agent is now saying

Asked by Lorrie Feld, ABR,GRI,SRES,, Scottsdale, AZ Tue Apr 7, 2009

that total commission is 5% and bank will only allow a split of 3% and 2% and that the selling agent can't get 4%. Has anyone ever heard of the bank setting these kinds of rules or is it the listing agent that might be saying this to get more commission?

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6
Laura Myers…, Agent, Scottsdale, AZ
Tue Apr 7, 2009
Hey Lorrie

What is set in the MLS listing prevails. The closing cannot be delayed on this as well. In addition, Fannie May has set a precedence that they will uphold the original listing agreement so if listing agent writes at 6% then that is not re-negotiable at closing by the bank (not to exceed 6%). That is just a side note.
Always print out the listing plano when you show a home and keep it with your contract through closing. The only thing for you to consider is if 3% is better than the issue at hand and realize she made a mistake and that you are ok with her getting the 2%.

Also, the agreement for sale that should have been delivered to you should show the commission agreement.

Good luck and good to see you on Trulia. Love this place!
1 vote
Jon Griffith, Agent, Scottsdale, AZ
Wed Jun 3, 2009
The lender determines the total commissions paid out. How you've advertised it in ARMLS is set in stone unless both brokers agree to something else in writing. If you offered 4% in the MLS, you have the burden of negotiating with the other agent, but you should be paying 4%.

Banks do not set these rules. And furthermore, junior lien holders, who think they have control over commissions paid, do not, because they do not pay the commissions at all; the senior lien holder does.
0 votes
Temporarily…, , Tempe, AZ
Tue Apr 7, 2009
Suggest you consult with your broker. For what it's worth the ARMLS rule is that the buyer broker is due the commission offered in the MLS, and can't be unilaterally changed. Change requires agreement between selling and listing brokers. Commission may not be altered by statements in the remarks section as perhaps may be done in other states MLS. If your broker did not sign an agreement allowing change in commission, then the listing agent owes you the full commission offered in the MLS.
0 votes
Terry Forsbe…, Agent, Scottsdale, AZ
Tue Apr 7, 2009
If there are not other exceptions listed in the remarks section or anywhere on the MLS printout, the broker owes the 4%. No acceptions.
terry
0 votes
Barbara Sali…, Agent, Highlands Ranch, CO
Tue Apr 7, 2009
Yes, this is common. Quite often you will see in the remarks section of the listing a statement that the stated commission may be adjusted by the bank, I have done a few bank owned deals and I have not had mine changed from what was stated, however, I have never seen 4% quoted though. It is usually either 2.8% or 2.5%. I think the listing agent made a mistake in quoting 4% in the first place.
0 votes
Robert Kroon, Agent, Phoenix, AZ
Tue Apr 7, 2009
Yes, more and more we are hearing this, or something similar, from sellers ( lenders / banks) .

We have agents in our office that list REOs and they say this is a fairly common practice. Banks will always try to squeeze out more nickels.

It is not uncommon for the sellers / listing agents asking the buyer's agent to accept a reduced commission.
0 votes
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