The Battle Between the Realtor & the Real Estate Agent

Jenna Dixon As long as the forms are legally approved for use in your State, there shouldn't be a problem. Reducing the fee should not be allowed.

Jenna, in Florida we have a number of different contracts; in fact, the FAR Legal Hotline does not support our Northeast Florida contract. That is what I meant. A number of years ago, a large company here tried to introduce the FARBAR contract that most of the state uses, which is supported by the Legal Hotline and it was roundly rejected by agents here. In fact,they put in the MLS that it must be written on a NEFAR contract. Since your contracts are the same, it isn't that issue, but that is what I was referring to. Yes, if the Seller isn't aware of it, it is limiting the opportunities for their property and they probably wouldn't like that. 

I do not believe that any of my customers, past or future, know the difference.  I like to keep it that way.  Is it just another union trying to hang on?  Well, in retrospect we probably do need the NAR to help us in Washington, PERIOD.

That langage about the commission in the private remarks is strickly prohibited in AZ. The MLS serves a blanket agreement between brokerages for commissions under a seperate field. Furthermore, now the commission split including the co-broke is now part of the listing agreement between the seller and the listing agent, so the seller has to know what's going on.

Thank you very interest ing post.

Jenna - there are two separate issues you are raising. The one that's been the most discussed so far is the change in offer of compensation. I am a Realtor, and use the GAR forms - my listing contract specifies both what the seller has agreed to pay the Listing Broker, and what will be shared with the Buyer's Broker.  Any variation from that should be noted in the Listing agreement.

But on the subject of contracts, with the encouragement of my Broker, I insist on doing business with the GAR forms (my license allows me to use them in any transaction that I am party to). I have experience and training in those forms, and can not fully serve my clients when presented with an unfamiliar contract. I tell my clients that, and have their full support.

As far as countering with a GAR form to an offer presented on a non-GAR form? Not going there... Too many risks trying to match up pre-printed forms that were never intended to go together. In countering, I will draw up a complete GAR contract with the Seller's terms, and happily present a blank counter offer form to an agent if requested.

At least they are putting it in print, but still. In our Sacramento MLS, if an agent who is not a member (out of area, maybe from the Bay area, for example) writes an offer, we don't have to pay them anything at all. Our offer of compensation in MetroList is only between other MetroList members, if you can believe that.

Bank REO do it all the time.  Setting commission, form use of there own creation, and per diem if it does not close on time.  The same hold true for auction sales which I absolutely detest as an agent.  Is the highest bidder really the highest bidder or a fake bidder running up the price.?

No such thing here in the Seattle area - Northwest Multiple Listing Service (NWMLS). Strictly using NWMLS forms. NWMLS, to the best of my knowledge, doesn't even automatically feed listings to realtor.com. Seriously, why would the local NAR want to compete with their own forms against the local MLS?

Janis Borgueta  "I don't think I can be a member of my MLS and not a member of NAR. I guess it wont be an issue in these parts." 

Not true with my MLS ! But you CAN NOT be a member of NAR if your brokerage is not.  Membership in NAR is by company and not by individual agent.

Jenna I have seen the statement "if we show your buyer, the commission paid will be reduced to x%". I'm pretty sure it's not in the listings agreement.

Am I missing something here?  If a non Realtor saw your Realtor listing and wanted to show it and sell it to his customer, what would prevent him from calling the owner and asking the owner how the commission works and asking the owner if he has any preference about the form of the contract?  What would prevent that non Realtor from presenting that contract directly to the seller?  Let me answer my own question.  Nothing would prevent him from doing that.  He would not be violating any law.  Mr. Non Realtor is not bound by the code of ethics or the rules of the MLS.  He is a non Realtor.  He is only bound by the laws of the state.  I am pretty sure, if Mr. Non Realtor has a buyer, he will be welcomed by the seller no matter what contract form he uses.  I am also reasonably sure that if you are doing anything to stand between Mr. Seller's house being sold and a qualified buyer, he will start to perceive you as the enemy pretty quickly. 

The Association of Realtors is a club that many of us have chosen to join.  Would it be ridiculous to insist that your co operating agent be a member of the Rotary Club?  Yes, it would.  The seller doesn't care who has a buyer.  There is no reason that is advantageous  to the seller that the buyer's agent has to be a local Realtor.  Let's not impose our prejudices on our sellers.  Any licensed real estate agent with a qualified buyer is welcome to show and sell my listing.  I have time to drive out and let these qualified buyers and their licensed real estate agent in the house. I can read and understand their contract form.  If you are scaring away licensed real estate agents that have a buyer for your listing just because they are not a member of YOUR club, you are part of the problem.