A MIBOR member recently asked for clarification on whether a discussion to change the BAC at closing is appropriate. Specifically, the member asked about a demand by the buyer’s agent for a different split other than what was advertised in the BAC. Here is the answer.
“The listing broker retains the right to determine the amount of compensation offered to subagents, buyer agents, or to brokers acting in other agency or non-agency capacities, which may be the same or different.”
Nowhere is there language that requires a listing broker to split the commission charged to the seller in any manner other than what that listing broker decides to offer in the BLC® listing service.
Article 3 (S.O.P. 3-1) of the Code of Ethics requires that REALTORS® ascertain the terms of compensation, if any, before beginning efforts to accept the offer of cooperation. Accepting the offer of cooperation would be showing the property and/or submitting the offer to purchase.
S.O.P. 3-3 does not preclude the listing broker & cooperating broker from entering into an agreement to change cooperative compensation. Having said this, as long as the listing broker honors what they promised to pay, a discussion at closing demanding a different split is inappropriate.
To view a complete copy of the Code of Ethics of the National Association of REALTORS®, click here.
For more Fast Track articles, visit www.mibor.com/fasttrack today.