Here's the first line item in this form:
Notice the "Bank of America is in no way responsible for Listing or Buyer Realtor / Broker sales commissions, since that is the sole responsibility of the property seller under the terms of the listing agreement."
Now, if this is a Fannie Mae file, they have to pay 6%. But, if it's not...does this mean they'll approve the short sale, but the sellers will be expected to pay the realtor commission? LOL I certainly hope not because if they could pay those commissions, they most likely wouldn't be doing a short sale.
What do you guys think?
Angela, you bring up the best point, legally speaking, in a true fiduciary responsibility, agents should be bound to do whats best for the seller and essentially work for free. Of course, if there is no compensation, is there really representation? But seriously, I think they just had VERY poor wording on it, lets hope they fix this. From all contacts I've had at Bank of America, they are exploring ways to cooperate better with agents. (Such as their Realtor guide to short sales).
So if that is their true intent, I would think this is just poor wording. It almost sounds like they got in trouble legally for trying to negotiate something that they shouldn't be negotiating, and put that specific verbage in there to protect themselves. In other words saying "We don't negotiate commissions, heck, we don't even own the property... When did WE knock the commission down... Never happened..."
Only problem I can see, however, is that if agents sign this, they are agreeing that their commission is the sole responsibility of the seller...which could easily mean that the lender does not have to pay it.
I am going to email some of my higher ups at BofA and see if i can get some clarification...I'll let everyone know what I find out.
You bring up a good point in questioning whether there's really representation when there's no compensation...especially since our listing agreement is basically a contract in which there's an offer of service for the consideration of payment. No payment should essentially make the LA void, shouldn't it?
if you know who to speak with at B of A and, know how to find out the contact info. for the Investor, 9 times out of 10 you can get your 6%....
We negotiate short sales for agents all over the country, and, if everyone is ok waiting an extra 2 or 3 weeks to close (that is often how long it takes to get to teh right person, get the file reviewed and approaved), most of the time we get the full 6% (many agents just want to get to closing, and, since the extra 1% is actuall only 1/2% to each agent, m ost of the time we here:
"Ben, just get this to closing, it is not worth the exra 1/2% to me...."
Best of luck to all those dealing with short sales!!!
Has anyone signed this addendum and had no problems with getting paid a decent commission?
I would want an agreed upon HUD before signing.
Here is a legal review of these addendums. All agents should check with their broker before sigining.