Replies to This Discussion

Permalink Reply by Peggy J. Wheaton on July 13, 2010 at 6:00pm

Yes they can. They are not a party to the listing agreement contract. I do not even take HSBC short sales for this reason. Ocwen is another one...

Permalink Reply by Sharon Molnar on July 13, 2010 at 7:15pm

Usually when taking shot sales in our area agents put in a disclaimer that if the sellers lender cuts the commission, that the commission will be split evenly between brokers. It's doesn't matter if they are the same brokerage. You might want to broach this with the buyer's agent or your manager if you are not comfortable doing so.

The other thing I would do is appeal back to HSBC and ask them to reconsider and build a case why they shouldn't cut it to 4%. Negotiate the commission. See if you can't get them up to 5%. Are you the same brokerage, different offices? If so, build on that.

Permalink Reply by Steele V. Propp on July 15, 2010 at 10:41am

There is a question with this whole thing as to whether a lender who is not a party to the listing agreement can change the fees...legally. Frankly, it's a real gray area. There are questions of contract interference, even extortion.

I like the immediate idea of appealing this direct to HSBC. Explain that just because you are from the same company does not mean the buyer agent should get less as this person is an independent contractor. I have seen this kind of stunt done when you are both listing and selling agent, but same company? That is silly. And most other lenders won't do this.

One of the reasons some of these guys do this is because they have always gotten away with it. Perhaps it is time to explore a legal challenge of contractual interference. I think I will bring this up to a legal forum for real estate. See what the attorneys have to say.

Just a note, my MLS will not allow language about any kind of change of the offered MLS coop fee. If 2.4% is offered, that is set in stone. The exception is if the agents agree privately to the change. So if your situation happened to me, I would have to pay a coop of 2.4%. Period.

Unless I could talk the other agent into accepting a 50/50 split after-the-fact. And while that might be possible on an in-house sale, it's hard on a coop sale. At least in my experience.

Steele in Minnesota

Permalink Reply by Kathy Stanavitch on December 5, 2011 at 11:39pm

I agree with your reply, a listing agreement is a contract here what is laid out in that on mls stands..I agree but want to also suggest you find out who lender is they go after them. Tomorrow the Tri State convention is in Atlantic City I am going to ask this question............Triple Play, New York, New Jersey and Pennsylvania someone will find this very interesting I am sure.......

 

Kathy Freehold, NJ

Permalink Reply by Peggy J. Wheaton on July 15, 2010 at 6:51pm

Ask them whi the investor is. If it is fannie or freddie you know that isnt their policy. In the future you should have an addendum at the acceptance of offer stating commissions are ultimately up to the lender and you will split it 50/50. Do not put that into MLS printout but as an attached doc in MLS so it does not ruin your negotiations with lender.

Permalink Reply by Steele V. Propp on July 15, 2010 at 7:00pm

Just so you know this also would not be allowed in our MLS. We have been told NO conditions when it comes to fees can be in the MLS, anywhere. According to them we would have to send out this information and get agreement BEFORE any negotiations could even start. In fact, they have said we really should be sending it out before the property is shown.

Otherwise the offer of compensation originally in the MLS stands.

EEEEgggg!!!

Permalink Reply by Peggy J. Wheaton on July 15, 2010 at 9:04pm

Yes I know all MLS rules are different. I suppose in that case I would under list the commssion and have a conversation and addedum with the agent that brings in an offer to give them more. What area are you in? How are you handling that isse?

Permalink Reply by Sherri Elliott on January 25, 2011 at 6:54pm

I have had them try that. You need to let them know you are under the same Broker, but are independent agents, and not on the same team. I have never had an issue once I explain that part. And show them I offered 3% to the Selling agent in MLS.

 

Sherri Elliott- REALTOR- CRS,GRI,SFR, CDPE

Permalink Reply by leslie schultz warthman on January 28, 2011 at 5:52pm

I've heard it all now. Another angle that will hopefully not become common!

Permalink Reply by Daniel Sandoval on July 19, 2011 at 10:18pm

I dont know why are they cutting commissions...5% is reasonable....Give the other side 2% only. Price and commisson subject to lender approval. No need to short yourself with the commission...BUyers agents know the drill of the short sale.