Over the last 25+ years I have delivered thousands of commission checks to Real Estate Agents/Brokers at the closing table. It has always been my pleasure to offer this convenience to my clients who would prefer that I not mail the broker's checks, thus enabling the agent to get paid in a more timely fashion.
Long, long ago I would be asked to write two checks at closing. One to the listing broker and one to the selling broker. Oh, how things have changed of late. And, honestly, I don't like it.
More and more often of late I have been asked to write checks at closing as follows:
1 to the listing BROKER
1 to the listing AGENT (in his/her individual name) pursuant to a letter from their broker
1 to the listing BROKER for the admin fee then...
1 to the selling BROKER
1 to the selling AGENT, in his/her individual name, pursuant to a letter from their broker and
1 to the selling BROKER for their admin fee.
That's SIX CHECKS FOR COMMISSIONS. Now, it's not like it takes a long time to write a check, but , REALLY?? What we have here is me, the title agent, handling a large part of the brokers accounting for him/her. Again, I really don't mind offering the convenience of cutting checks for commissions at closing, but each of these checks I write equates to a COST to me. The cost of the checks themselves, the cost of paying my accountant to clear each check, the cost my bank charges me for each check that is presented, etc.
I will continue to offer this convenience to my clients, because that's what they have come to expect. I wonder though, is this now a common occurance nationwide, or is this just in Maryland? Anybody?