What To Do If Buyer Agent Compensation Is Not Guaranteed! - Ep 194
On this episode of the Realtor Jail, Jenn, Rachael, and Saul are addressing the question, “What To Do If Buyer Agent Compensation Is Not Guaranteed!” Will it be better for Buyer Agents or will this cause more fallout and lawsuits?
Tune in and find out!
Episode Highlights:
- Jennifer talks about the topic and asks Saul for more context, why is there guaranteed compensation?
- Saul says there is a case that challenges the clause in the MLS guidelines, which is the Broker Compensation Clause.
- Since the 90’s the MLS has had an of compensation, that allows competitors to cooperate and to create a robust marketplace
- Jenn understands, that as the buyer, she paid the buyer agent commission through the offer but she wasn’t able to negotiate it.
- In this case, they are sellers. The sellers said when the listing agent took the listing, they were going to charge 5% and then they were going to split that with the person who brings in the offer.
- Jenn says that if she were the seller if given the option to pay the buyer’s agent a certain amount, she would not pay them anything because the buyers should pay them.
- Saul agrees that this would happen if the Seller have no knowledge about the marketplace
- Saul argues that this is why nationwide, commissions offered to buyers' agents are fairly consistent.
- Currently, it is known that you will get a commission when you find a buyer and the deal is sealed and there is no need for a written agreement. What if that is not the case anymore?
- Jenn says that that will make their dream come true, that all agents representing buyers will have a written agreement for their fee.
- In this litigation, that’s the best course of action.
- Saul says that there are issues that will come out of this.
- The idea behind agency disclosure was explaining the way consumers can be represented in a real estate transaction
- Saul says that the best course of action to mitigate liability in real estate today is to get a Buyer Broker Agreement.
3 Key Points:
- Saul says there is a case that challenges the clause in the MLS guidelines, which is the Broker Compensation Clause. Since the 90’s the MLS has had an of compensation, that allows competitors to cooperate and to create a robust marketplace.
- Currently, it is known that you will get a commission when you find a buyer and the deal is sealed and there is no need for a written agreement. What if that is not the case anymore?
- Saul says that the best course of action to mitigate liability in real estate today is to get a Buyer Broker Agreement.
Resources Mentioned:
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