If a buyer's agent works for the same broker as the seller's agent, (same transaction) but doesn't take any fee whatsoever from the buyer, then is he just splitting the commission with the seller's agent?

(He must be getting some $ from somebody...) If so, is this legal?

It is called a co-op fee and yes it is legal. Why on earth would it not be legal????????????

And why do you ask........could it have something to do with you real estate misfortune?

Yes - according to a barely legible photocopy, he was acting as a buyer's agent. The light dawns over Milwaukee....


(That's a joke, right?? You know how gullible I am.)

???????

Well, I know no background to this story.

But just to let you know, for instance... I have NEVER taken a fee from buyers. It's not wrong to do; it's just that that's not how I run my business.
When I have brought my buyer to a home listed by my broker, and sold it, I have received a co-op fee from my broker.
When I have brought my buyer to a home listed by another broker, and sold it, I have received a co-op fee from the other broker.
That is the way the majority of transactions occur in this area.
--A

I just know that in many states, it is illegal for an agent to recommend a house inspector, and I of course assumed that the same would apply to buyer's agents accepting money from the seller's broker. Think of it. The buyer's agent doesn't get paid unless the home sells.

As I said in one of my blogs, it's just a "Scam waiting to happen." (Not to imply that you are scamming anyone. Those of us who are honest often have trouble imagining that there are crooks around)

I would imagine that in California, it would be illegal.

I only know of one state, Massachusetts. Is Maine also one? Do you know of any others?
The amount of a buyers agents co-op payment is identified in the MLS by the listing broker for everyone to see. In the event that the buyer pays their agent, the agent is not entitled to receive a co-op fee without their buyers permission. I don't know of any agent trying to collect from the buyer and the listing broker, the buyer would be very upset at closing to see on the HUD 1 that 2 fees are being paid his buyer agent/broker. (remember, all monies go the the broker and not the agent directly)

Not sure where you got that it's illegal to recomend an inspector. It would be, I believe, illegal to stipulate that a certain inspector must be used.

Usually, no one gets paid unless the house sells.

"Real estate brokers and salesmen may not directly recommend a specific home inspection company or home inspector unless representing the buyer as a buyer's broker. Brokers, however, may provide assistance to buyers in accessing information on licensed home inspectors."

http://www.mass.gov/dpl/consumer/fspagehi.htm

That could be the difference. When I first got scammed, I researched inspectors and their relationship with agents. I read that it was illegal in most states for an agent to recommend an inspector - but it must have said "Seller's agent"

Until this week, I thought that the agent who conned me was a seller's agent. I asked him about getting a buyer's agent, and he hemmed and hawed and told me that everything around here was pretty informal.

When he recommended the inspector, I still thought he was the seller's agent, since they both work for the same broker, and it was this agent who pointed out the home to me.

I think it was only at the closing that he snuck in the paper with the tiny check box indicating that "Yes" he was a buyer's agent. (In fact, I wonder if it was the paper that they had to call me back after the closing to initial. They said they'd "forgotten" something.)

But by then, the crooked inspector had already done his thing.

I just found out this week that this broker is being sued by someone else nearby - not sure what for. I suppose that happens quite a bit in real estate.

Thanks very much for the valuable and interesting info.

In Texas this is called intermediary. The SELLER pays the commission and is split with the BUYER's agent. It totaly legal.

In the setting of INTERMEDIARY the buyer's agent works FOR THE BUYER. The listing agent works for the SELLER. It's complely ETHICAL.

It may be legal, and in some instances it might be termed "ethical", but in a town like Bangor, ME, you might as well cover yourself with honey and lie down on an anthill as trust any real estate agent.

So why one earth would anyone trust a buyer's agent who does not get paid unless the property sells?

Ahem: If the property does not sell, then he does not get paid.

(Has anyone smelled the coffee yet?)

This is why:
Fiduciary Duties Of A Real Estate Agent
A real estate broker who becomes an agent of a buyer is deemed to be a fiduciary. Other examples of fiduciaries are trustees, executors, and guardians.
As a fiduciary, a real estate broker is held by law to owe specific duties to his/her principal (the person who they are representing), in addition to duties or obligations set forth in a buyer representation agreement, or other contract of employment. These specific fiduciary duties include:
· Loyalty
· Obedience
· Disclosure
· Confidentiality
· Reasonable Care and Diligence
· Accounting
Loyalty
One of the most fundamental fiduciary duties an agent owes to the principal. The duty obligates a real estate broker to act at all times, solely in the best interests of the principal, excluding all other interests, including that of the broker.
An example of breach of loyalty is when a broker purchases a property listed with his/her firm, and immediately resells it at a profit. Such conduct is usually considered appropriate and lawful by persons who act at arms length, but a fiduciary would be considered to have stolen an opportunity for profit that rightfully belongs to the principal.

Obedience
An agent is obligated to promptly and efficiently obey all lawful instructions of his/her principal that conform to the purpose of the agency relationship. However, the duty does not include an obligation to obey unlawful instructions, such as instructions to not market a property to minorities or to misrepresent the condition of a property.


Disclosure
An agent must disclose to the principal all known relevant and material information that pertains to the scope of the agency. The duty includes any facts affecting the value or desirability of the property, as well as any other relevant information pertaining to the transaction, such as the other party's bargaining position, the identity of all potential purchasers, information concerning the ability or willingness of the buyer to offer a higher price, any intent to subdivide or resell the property for a profit.
An agent's duty of disclosure to his/her principal must not be confused with a real estate broker's duty to disclose any know material facts about the property value to non-principals. The duty to disclose known material facts is based on a real estate broker's duty to treat all persons honestly. The duty of honesty does not depend on the existence of an agency relationship.

Confidentiality
An agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property.
The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold know material facts about the condition of the seller's property from the buyer, or to misrepresent the property's condition. To do so constitutes misrepresentation and impose liability on both the broker and the seller.

Reasonable Care and Diligence
An agent is obligated to use reasonable care and diligence when pursuing the principal's affairs. The standard of care expected of a buyer's or seller's real estate broker is that of a competent real estate professional. By reason of his/her license, a broker is considered to have skill and expertise in real estate matters superior to that of the average person.
As an agent who represents others in their real estate dealings, a broker or salesperson is under a duty to use superior skill and knowledge while pursuing the principal's affairs. However, no broker is expected to perform tasks or know information outside the scope of his/her real estate license. Real estate licensees are not expected to perform services normally provided by engineers, lawyers, accountants, or other professionals. If concerns arise outside the scope of a broker's responsibility, the broker should acknowledge that and suggest that the principal seek assistance from a reliable outside source.

Accounting
An agent is obligated to account for all money or property that belongs to his/her principal entrusted to that agent. The duty compels a real estate broker to safeguard any money, deeds, or other documents entrusted to them relative to their client's transactions of affairs.

But of course!! That's even better than the Cub Scouts. (Or the Kiwanis - whose official was the very agent who conned me:

Kiwanis Objectives:
1. To give primacy to the human and spiritual rather than to the material values of life.

2. To encourage the daily living of the Golden Rule in all human relationships.

3. To promote the adoption and application of higher social, business and professional standards.

4. To develop by precept and example, a more intelligent, aggressive and serviceable citizenship.

5. To provide through this club, a practical means to form enduring friendships, to render altruistic services, and to build a better community.

6. To cooperate in creating and maintaining that sound public opinion and high idealism which make possible the increase of righteousness, justice, patriotism, and good will.)

Pike's Peak, (are you a skier? Me too.)...

I want to live in YOUR world!!!!

Typically, no agent gets paid until a transaction closes. And then payment goes to their broker, and the broker pays the agents.

So...no sale....no payment.

The next time I ask a fox to guard my hen house, I'll ask him PLEASE not to eat any chickens, since that would be unethical.

I'll wait and see what he does.

Of course, the only creatures policing this fox are the OTHER foxes, all salivating for a piece of drumstick themselves.

Ah hem. Excuse if I don't boil the water for my chicken soup! ;-)

As I said before --- "Just a scam waiting to happen"