I closed a home yesterday that noted "bonus to the buyer's agent of $1,000" in the MLS. When I received my commission, the bonus had been distributed to my broker also. According to the escrow officer, they will distribute per the escrow demand (ie straight to the agent or distributed to both agent and broker). According to our office, that latter is our policy.
I am wondering if other agents out there have had a different experience? What are other agencies doing?
In Georgia, a bonus paid to an agent or even offered to an agent would be illegal. Only a broker can be paid a commission in a real estate transaction, and the money is distributed per the independent contractor's agreement.
As an Exclusive Buyers' Agent I don't take the seller incentive. I make sure the buyer gets it in the form of a price reduction at closing.
Having said that, however, whether an incentive is paid directly to an agent is determined by the real estate commission of your state. Most require it to be paid to your broker, who, depending on your agreement with them, will pay you what you are contracted to receive. If your Broker doesn't address this in the contract with their agents, take it up with them and make your case.
Let me restate what I said earlier so that I don't mislead anyone: in our company, the agent bonus is paid to the broker, who pays the entire bonus to the agent. It is not subject to the split.
When I was a very new agent, I had, ahem, difficulty remembering "selling agent" meant the buyer's agent. I thought it was the listing agent (okay, I did say I was new, right?) so when I saw a listing that said, "Selling Agent Bonus," I remember thinking, "well, that's odd, why would the listing agent put that in MLS?" (I did mention I was new and stupid, right?) I did not give it another thought until we got to settlement and lo and behold, there was a $2,500 agent bonus on the HUD 1.
Ironically, this was the deal from you-know-where with the client from you-know-where! I still laugh at how naiive I was about that bonus, but boy, did I earn it that time.
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