Listing broker does not co-broke. How does a cooperative broker get their commission?

Asked by Ms. Pat Malone, Houston, TX Fri Jan 28, 2011

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Kevin Olson,…, Agent, Colorado Springs, CO
Fri Jan 28, 2011
One other method I've used in this situation is writing it (your commission) into the purchase agreement/contract when submitting the offer. In my situation the seller had no idea that the listing broker wasn't splitting the commission due to miscommunication in the paperwork when listing. Honest mistake... I don't think so... but it got the problem solved (other agent was not at all happy).
2 votes
Trish Rickle…, Agent, Houston, TX
Sat Mar 12, 2011
Check out 'procuring cause' with your association. Was the property listed in MLS/Tempo? If so, commission splits are stated in the listing. Call HAR if the broker is not honoring what is listed in MLS/Tempo. FIRST of all, ask your broker what to do....
0 votes
James Gordon…, Agent, Hamilton, OH
Sat Jan 29, 2011
Ms. Pat if the property is listed on the MLS there must be a cobrokerage amount. That amount can be as low as $00.01. The purpose of the MLS is a Broker to Broker exchang of properties that are available for cooperative sale and the unconditional offer of compensation to a coopperating broker for the successful sale and closing of a listed property.

Check your MLS rules but the MLS is not a public advertising medium. Also in agent remarks compensation can be higher that what is listed but never less. On short sales in my area some brokers offer .01 for compensation but in agent remarks offer 50/50 split of what the lender agrees to. You go in knowing that you may only get .01. This is a very good reason for a buyer broker agreement to be in place already.
0 votes
Maya Thomas…, Agent, Key West, FL
Fri Jan 28, 2011
This is very unusual. Ask your broker to call his broker.
0 votes
Bruce Lynn, Agent, Coppell, TX
Fri Jan 28, 2011
You need to discuss this with your broker or office manager.
There are several ways to go about this as discussed below.
Some people might argue that it is the buyer who is paying the commission anyway.
So just get them to make the appropriate offer, paying you directly.
There are certainly some advantages to the buyer to do this.
It could be the same situation if you have had buyer's sign rep for 3%
and the seller only offers 1 or 2% BAC.
You might also check the MLS rules. Some MLS will not allow exclusives to be listed with no co-broke.
You might also check with the agent or broker for the seller to ensure the information in the listing is correct.
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Brenda Jones, Agent, Houston, TX
Fri Jan 28, 2011
If this a residential deal, I agree with our Colorado pal who has chimed in below. AND I'll add...1) In Texas, you are certainly entitled to present the written (TREC form) offer with your Broker's commission written in Special Provisions to be paid by Seller (a party to the sale) DIRECTLY TO THE SELLER along with an IBS. 2) You must also deliver a copy of the offer to the listing Broker (who may not, necessarily also be the listing agent) 3) Remember that you are not allowed to negotiate terms directly with Seller and and you'll be in groovy shape,and lastly 4) CYA: get a receipt for delivery of the copy to Listing Broker. Best of luck to you!
0 votes
Krystal Vill…, Agent, Houston, TX
Fri Jan 28, 2011
Yes, if the Listing Broker is not offering a commission, then the only way to get a commission would be through your buyer. I would highly recommend getting a representation agreement signed by the buyer. In that agreement, you can enter that if the listing broker doesn't offer a commission, then the buyer has to pay 3% to you. This will also protect your client from working with another broker or trying to cut you out of the deal. Thanks, and good luck!

Brandon Newton
Green Dawn Realty
0 votes
Valarie Rich…, Agent, 77380, TX
Fri Jan 28, 2011
If you have a buyers agreement and the listing states

Compensation: Sub Agt 0% BuyerAgt: 3% the seller will pay your Broker for being a buyers agent.
If they have Zero in both places your buyer will have to pay you. This is for Residentail sell.
Commercial sell many times the listing broker will not pay the buyers agent.
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Fri Jan 28, 2011
Unless your buyer wants to pay your commission, and the Listing broker has an Exclusive
you do not sadly.

0 votes
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