This is an ASC (Wells Fargo) short sale it is a portfolio loan. We entered the commission as 3.5% to listing agent and 2.5% to buyer's agent as stated in the listing agreement and publised in MLS. Wells is countered back and stated that the commission must split 50/50 (3% to each side) They said this is a new policy but they won't state the reasoning behind it. Is this happening to others. They are giving 6% but how then can they dictate the split?
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This would be very interesting to know. It's called bullying and interfering with a contract between the seller and the broker.
True but that's no different than having a listing agreement at 7% with the seller and the lender only allowing 6%. I am trying to get to the bottom of the reason why they are limiting the listing agent to 3%
Exactly, it is interfering with the contract between you the listing agent and the seller. It doesn't affect their bottom line at all. It's them trying to be a regulator of the real estate industry. It was like them trying to be the real estate company for their own listings. NAR should get involved and stop them from crossing over the line to a jurisdiction that is not theirs.
I just received word from ASC that because I am the listing agent on my brothers home, ASC
will not pay out a listing commission at all. Has this happened to anyone else? I placed a
3% commission for the listing side. How can I get around this problem? If anyone else has
experienced this and received payment, please let me know.
Yes, I had that happen. I was the listing agent for my dad's house and the bank wouldn't pay me a commission either. I offered to transfer the listing to another agent in my office and they said they wouldn't pay them either. The bank said we would have to have a totally different real estate office list the home and that would mean starting the whole short sale process over.
Is your last name the same as his? If so, that is why you will not get paid. You need to put listing in someone's name that is a different last name than yours with a referral agreement with that agent for 100%. (Don't send the referral agreement to negotiator) Also, if you are able to double end a SS, you have to do the same thing.
Cancel the process...Listed under your broker's name! If they want to be smart, we got to be smarter! There are things they required which does not make sense, but there is always a way around them!.
The reasoning is that they are not "limiting" the listing agent as much as making things equal for the buyer's agent.If you need the .5% that badly you can always collect it from the seller. Not trying to be mean but it's funny how agents and sellers think that they can be in charge of other person's money.
Don't be surprised that there are strings attached when you want someone else to pay.
Oh, to answer your question, a number of lenders have started to use this policy. They have learned in real estate transactions like REO sales that when commissions are not at least equal for the buyer agent, there is a higher chance of things falling through.
Hey, they could have dictated the split the other way around. Oh, yes. And it's not contractual interference as yourseller is responsible for any difference. The lender has merely stated what it will contribute to the sale and that can have conditions.
Ive never had a Wells Fargo negotiator dictate my split. When did this policy start?
They said as of March and that it applied to the ASC portfolio loans I may be wrong but the reason may be that buyers agent have complained about getting 2.5% and being told by the listing agent that they have to pay a negotiator but they really don't and keep 3.5%.
Two words...Tortious Interference...
Dictating the split is mainly an interference with the agreement between the listing and selling brokers who are not parties to the purchase agreement. It is the purchase agreement that is subject to approval and unless the commission and split are somehow part of the purchase agreement, the lender should not interfere with it. However, lenders do have written policies regarding certain provisions that must be contained in the listing agreement for them to consider the short sale and pay a commission. Thus, if Wells Fargo or any other lender for that matter wants to dictate the commission split, they should include that in their short sale package instructions so that agents know what they need to post in the MLS. While I understand that lenders want an equal split because they may think that it will attract more buyers, their reasoning obviously does not account for the fact that the listing agent has more work and also the expense of marketing the property that the buyer's agents do not have. Since short sale policies are constantly undergoing changes, it is important that we always check with the lenders about policy changes before we submit the short sale package. Needless to say, buyers' agents will welcome this new policy and won't object to having their agreement with the seller's agent interfered with in that way as it is obviously to their advantage.