Can realtors talk about commissions?

“You are NOT allowed to discuss commissions,” a Realtor recently wrote in a popular Facebook group. “It is against the Sherman Antitrust Act.” Many agents believe some version of that amateur legal warning to be true. But in most cases, it is not. Do not collude with your competitors to fix prices.

Do estate agents have to tell you about other offers?

An estate agent is legally obliged to tell you every offer that is made in writing unless you have asked them not to. For example, you might not want to hear about offers under a certain amount.

Can an estate agent tell you what offers have been made?

Mark Hayward, chief executive of the body representing estate agents, NAEA Propertymark says: An estate agent can tell you whether there’s been other offers on the property in question, but they won’t disclose the specific amounts.

Is it OK for a broker to negotiate cooperating commission payments?

A: Absolutely not! Except for the fact that you cannot make an offer to purchase contingent upon an increase in compensation paid to you by the listing broker, you can negotiate your commission with the listing broker at any time during the transaction.

Can seller disclose other offers?

Short answer is yes unless the seller has signed a confidentially of offer agreement. forms are used without modification:listing agent may disclose the existence terms or conditions of buyer’s offer unless all parties and their agent have signed a written confidentiality agreement.

Why do estate agents not tell you other offers?

There’s no law, or Code of Practice term, that stops an estate agent from disclosing how much someone else has offered on a property. Estate agents work for the seller, not the buyer. They are unlikely to tell you the exact amount another buyer has offered if they think a guide amount will encourage you to offer more.

Does an estate agent legally have to disclose offers?

Yes, an estate agent is legally required to present all offers to the seller up to the point that the contracts are signed. In practice, this means that even if your offer has been accepted, another buyer can put forward their bid at any time before you’ve signed a contractual agreement – which can take a few weeks.

Is commission splitting illegal?

Although these fee split arrangements are somewhat common and are often legal under California law, many people would be surprised to learn that they can be illegal under federal law in the Real Estate Settlement Procedures Act (“RESPA”)1. …

What is the Sherman Act in real estate?

Sherman antitrust laws prohibit price-fixing, group boycotting, the allocation of customers or markets, and tie-in agreements. Price fixing is prohibited. This means that competing brokers, real estate governing bodies, or multiple listing organizations cannot agree to set sale conditions, fees, or management rates.

Do you have to disclose existing offers?

Answer: Yes, the Code of Ethics requires disclosure of accepted offers. Standard of Practice 3-6 provides a well-defined standard on this: “REALTORS® shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation.”

Can a seller accept two offers?

Absolutely. We have seen cases where the seller has accepted another offer after the buyer has signed the contract and sent the deposit. A seller can do that before they sign. Either party can do whatever they want until there is a fully executed contract.

What is the real estate commission split with a discount broker?

Oftentimes what is actually happening is that the buyer’s agent is being shorted on the real estate commission split. In the scenario outlined above, the split is 50/50. With a discount broker, it may look more like 2.5\% to the seller’s agent and only 2\% to the buyer’s agent.

How much Commission do real estate agents make when selling a house?

Plus, the process can mean weeks or months of work. Buyer’s and seller’s agents typically split the commission. So if a home sells for $200,000 at a 6\% commission, the seller’s agent and buyer’s agent might split that $12,000, and each receive $6,000.

What should a real estate agent disclose when selling a house?

Whether the house is in a flood zone. Real estate brokers and agents also have a fiduciary duty to disclose other information to potential buyers and sellers. This includes things that would influence sale value, negotiations, and moving forward. Some examples of other things that warrant full disclosure include:

Can a realtor take commission if the buyer is not paying?

A buyers agent would work in your best interest, but the commission is typically paid by the seller. So there is a situation where the realtor is taking a commission, but you’re not paying it. Some short sighted folks will try to make the argument that the buyer is paying still.