Purchase contract for non Realtor but active agent.

Asked by Tejash Lodhavia, Palatine, IL Wed Jan 2, 2013

I am a new self-sponsered licensed managing broker but do not practice real estate actively. I am not a member of any Realtor association nor have MLS access. My question is 1) If I am eligible for Co-op commission if I find a buyer for any property and 2) If I want to write a purchase contract on behalf of a buyer, can I use the 5.0 Multi-board Contract since that has a Realtor logo on it?

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David Hanna’s answer
David Hanna, Agent, Chicago, IL
Sun Jan 6, 2013
You can get paid IF you have a written agreement with the listing broker. Cooperation and compensation are not the same, and there is no implied or other assumed right to a commission if you are not a Realtor.
This is a primary value of being a member of a Realtor Association.
0 votes
Thomas Kossn…, Agent, Chicago, IL
Thu Jan 3, 2013
You must contact an attorney, period. Don't take legal advice from non attorneys. Rule 1. Make that a New Years Resolution.
0 votes
Manuel Brown, Agent, Chicago, IL
Thu Jan 3, 2013
As long as your license is active and your state required hours meet, you are good to go. I have never heard of anyone turning down a licensed real estate professional from turning down another from bringing a qualified buyer.

One thing that have been approached on many times over 2012 was licensed professionals like yourselves wanting access to my MLS and have had to turn them down. That would be a violation and fine. My only question and the would be for MRED is how to we give a non-member credit for the sale?

Happy New Years and Best of Luck,

Manuel Brown, Broker
iMove Chicago
0 votes
Tony Guisto, Agent, mokenA, IL
Thu Jan 3, 2013
Tejash - If you get something under contract and have proper wording you may sell your contract to get paid. Just a thought.
0 votes
Jose Hernand…, Agent, Chicago, IL
Thu Jan 3, 2013
Tejash,

You need to have an active real estate license to get paid a commission, doesn't matter if you belong to a board or not.

Check with your attorney to see if you can use the 5.0 contract.

Good luck!
0 votes
JIM Michaels, Agent, Chicago, IL
Wed Jan 2, 2013
I imagine you are working with a good real estate attorney, I would advise you to seek legal counsel/
0 votes
Le Ann Dunne, Agent, Iowa City, IA
Wed Jan 2, 2013
I would highly recommend speaking with the state realtor association's legal department to get the proper information. You do not want to make a misstep as you begin practicing. Good luck!
0 votes
Matt Laricy, Agent, Chicago, IL
Wed Jan 2, 2013
You could get a commission. I would make it negotiable, since your not a practicing Realtor though. I am not sure the legal standpoint of paying you your side though. Its something I as an agent would check with my attorney.

I am unsure about the 5.0 contract. I woud assume no, since its made for a Realtor practicing in the NAR, IAR, and practicing on a board. Since you dont participate in the NAR or IRA, or a member of a board, I would think you cant use the contract. I would double check with your attorney though.
0 votes
Joe Schiller, Agent, Chicago, IL
Wed Jan 2, 2013
the board you belong to has a legal dept that is able to answer that question
0 votes
Albert Cossy…, Agent, Chicago, IL
Wed Jan 2, 2013
Coop commission has nothing to do with being a part of an association. Get a signed agreement from the agent's broker and you're good to go. Use your own contract if you have doubts about using a 'Realtor' contract. Better yet, have the listing agent type up the offer on their realtor contract. Good again! Easy!
0 votes
Don Pasek, , Chicago, IL
Wed Jan 2, 2013
Tejash:

Many brokers will cooperate with non-members of the MLS, but usually they offer a lower co-operative commission than they do to those who are members, since you are not supporting the MLS network. Regarding the 5.0 Multi-board contract, I imagine you are free to use whatever contract your client allows you to use, but I would ask first.

If you're only representing yourself, then you can use whatever you like. The REALTOR logo just indicates that a Board-paid attorney created the form.

BTW, where are you obtaining a Board contract form if you are a non-member? Also, why not join the Board even if you don't wish to be an MLS member? There's no MLS membership obligation, but you will have access to many resources that you wouldn't otherwise have, not to mention networking opportunities.

Don Pasek, CIPS, TRC, ADPR
Omniterra Real Properties
Chicago
0 votes
Mark Bazzetta, Agent, Chicago, IL
Wed Jan 2, 2013
Hmmm, very good questions. My guess is that 1) since you are not paying for MLS, you would need an written agreement with the listing agent, what your co-op commission would be for the sale, and 2) if you aren't a Realtor (i.e. member of NAR), you shouldn't be using any forms produced by the local, state or national associations.

Now would I mind if you brought a viable buyer to the table on one of my listings? Probably not. But I wonder if you might not enjoy the same co-op my fellow MLS/CAR members would. Every case would be different.

Good luck with whatever route you take in this biz.

Regards,
Mark
0 votes
Bobby Walsh, Agent, Chicago, IL
Wed Jan 2, 2013
Realtor,

You should be entitled to a commission as long the listing broker is willing to "cooperate".

With your lack of real estate practice, I would first and foremost your attorney and also beware of non copy-wright contracts that are on the market to defraud potential clients.

See link below for additional information on contracts.


http://www.irela.org/developments/contract-alert.aspx
0 votes
Bill J Delig…, Agent, Naperville, IL
Wed Jan 2, 2013
Contact the Illinois Association of Realtors.

http://www.illinoisrealtor.org/
0 votes
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