Stated Commission Does Not Belong in the Offer to Purchase or Sales Contract

You are correct the contract to purchase is between the buyer and seller.  Commission is between the brokerages.  The time to ask for a change in the commission is BEFORE you show the property.  Once you have shown it as an agent you have agreed to the T&C's in the MLS.  I've had an agent or two try that trick and it ends up on the cutting room floor.   Great way to end up with an ethics complaint!

Good call! This is one of the reasons I have NEVER used a trade/Realtor association lease/rental agreement.  None of the tenants' business as it is stated in the MANAGEMENT AGREEMENT

Great post.  Thanks for sharing this with all the rainmakers.  We need this info to help us, keep it up.  I would love to see more.

Am in agreement P & S is between buyer and seller. 

However, a buyer can ask the seller to pay his buyer agency fee of XXX, just like he can ask the seller to pay XXX towards his closing costs.  (In this case its in the P & S and still between the buyer and seller).

Charita, 

The only time I think it is appropriate to add is if the home is not listed.  (I sold one that wasn't listed and the builder/seller had agreed to pay a commission, but asked me to do it that way.  So, all bases were covered.)  

I find it completely obnoxious if they use it to change any numbers, but everyone has to work for what fits them.  

All the best in 2011, Michelle

Charita, We don't ask for more than the MLS offers.  We print a copy of MLS as part of the offer to have a document of what it was, just in case someone tries to change MLS after the offer.

We don't see the commission stated in the Offer here in MA.  But, it is commonly seen in the Purchase & Sale Agreement, but the agent typically signs that here in MA as well (not sure how other states operate).  Sometimes the paragraph will read "as per listing agreement."  It makes it easier for the closing attorney (another difference here in MA that closings are handled by attorneys) if it is spelled out in the P&S so that when they prepare final closing figures, they have that information, rather than having to track it down.

Charita - I just saw this same thing in a post about changing the MLS after an accepted offer and was really surprised that some Realtors/agents were saying to put the commission in the purchase offer.  My first thought was - SERIOUSLY!!!  WHAT FOR!!!

I've see a lot of purchase offers and I can't recall ever seeing one where the commission was stated in the offer.  We simply don't do that here in Cali.  However, I have seen the commission agreements but they are completely separate from the purchase offer.  It's rather interesting to see the way some folks do things in other states.

I've never seen the commission listed in an offer, but I just attended a class where the teacher stated that she sometimes DOES mention the commission in the offer........if it isn't up to snuff and cover her fees, she sometimes rejects the offer of compensation and addresses her fee through a Seller's concession.

I had never seen or heard of this before.