Commission on the contract?

 It all started about a month back when I recieved a great offer on a beautiful property I had listed from a well respected agent from another firm. Price was great, terms and financing were acceptable, and they didn't even want a home inspection! Then I noticed a clause that stated (not quoting here) The Seller will pay from closing 3% commission to (said company) as noted in the MLS. 

 I thought about it for awhile and although I had never seen a commisision written into a contract, it seemed like a smart idea to me. The seller had no problem because they were already planning to pay the stated 6% to split between us. Sellers signed the deal, appraisal, financing, ect all went smoothly and we closed 4 weeks later.

  Fast forward to this week. I show a property for the second time to interested buyers Ive been working with and they decide to make an offer. I write it up (Not putting commission on the contract) and take it over to the sellers agent. It was low so over a period of days the buyers and sellers verbally came to an agreement. This final agreed upon price was only acceptable to the seller if both agency's agreed to lower total commission from 6% to 5% (sellers great idea). Im not one to lower commission but in this situation I really wanted the buyers to get the house so I agreed. 

  In the process of writing up the contract terms everyone has agreed upon, I tell the selling agent I am going to note the commission on the contract (the seller already lowered us to 5% and Im thinking I dont want him trying to hassel further at the closing table!). The selling agent said that they absolutly would not have his sellers sign a contract that stated the commission rate. He says its unethical, illeagal, and against NAR policy to have commission on the contract! 

  After some quick research I haven't found definitive proof either way. The agent I "adopted" it from is generally top notch and I would consider her very ethical. So do YOU, or do you know anyone who puts commision rates on contracts? Is it against NAR policy? Illegal?

Travis Broadwater

www.travisbroadwater.com