I'm obligated to present an offer on a home - it's outside my MLS and listed on another MLS in a nearby county.

The agent said he'd take the offer and give me a whole 1.75% commission for my side.

I spent most of yesterday upset and in tears over this - I've worked so long and so hard with these buyers and feel like I got kicked in the teeth.

Any advice you have would be appreciated.

I think I would check to see if your MLS and the other MLS practice reciprocity. If so, it seems as though you would deserve the same fee as someone in their native MLS. Not certain about this, however. Alternatively, can you get your buyers do use you as a buyer's agent, and kick in the balance of the fee you would otherwise receive? There's probably more than one way to work this out.

Prior to even showing a property that is not in your MLS you should have a co-broke agreement with the listing broker (whether that broker is in another MLS or totally independent). There is no sense in spending your time and resources promoting a property to a buyer without knowing, in advance, what your share of the commission will be.

· Standard of Practice 16-15
In cooperative transactions REALTORS® shall compensate cooperating REALTORS® (principal brokers) and shall not compensate nor offer to compensate, directly or indirectly, any of the sales licensees employed by or affiliated with other REALTORS® without the prior express knowledge and consent of the cooperating broker.
· Standard of Practice 16-16
REALTORS®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation. (Amended 1/04)

Explanatory Notes
The reader should be aware of the following policies which have been approved by the Board of Directors of the National Association:

In filing a charge of an alleged violation of the Code of Ethics by a REALTOR®, the charge must read as an alleged violation of one or more Articles of the Code. Standards of Practice may be cited in support of the charge.

The Standards of Practice serve to clarify the ethical obligations imposed by the various Articles and supplement, and do not substitute for, the Case Interpretations in Interpretations of the Code of Ethics.

Modifications to existing Standards of Practice and additional new Standards of Practice are approved from time to time. Readers are cautioned to ensure that the most recent publications are utilized.

It's a non-cooperating MLS w/mine so reciprocity isn't gonna happen by law -- I'm wondering if I can add an agent from their MLS to my offer and give her half the commission just to keep it out of Mr. Greedy's pockets and teach him a lesson that's not how you treat people.

Take what you can get and move on. No need to further muddy the water at this point.

I've cursed every dollar he's taken and it will only bring him misery -- you can't build happiness by causing the suffering of others, it's the law.

I hope you have it in writing because nothing in life is guaranteed to be fair. Next time get it writing before you show it while you still have some leverage.

Artiste - take this as a lesson and learn from it. It's not the listing agents fault that you didn't specify the terms of your procurement before presenting them with a buyer. From what you're saying, they don't have to pay you anything at all...they're being nice by offering the 1.75% co-broke to you.

The MLS serves not only as a database of properties but also as an offer of compensation. If you are not a member of that MLS and if your MLS is not reciprocating.....then nobody ever offered to pay you a dime for procuring a buyer for that property.

Next time I would recommend having your buyers sign a buyer-broker agreement and/or getting cooperative commission in writing from the listing agent PRIOR to showing the property.

I'm sure you've already thought of these things...but the only thing you can do is learn and move on...or stay bitter and slash the other agents tires (not that I'm advocating that course of action...)

so, tell me why you cannot join the other MLS before submitting the offer? would you realize a higher net profit if you do?

He's trying to grab over $2600.

Never in a million years did I think I'd meet a greedy Realtor who'd gladly burn me -- I thought our motto was "Fair and Ethical" and it's unfair to grab commission even if you can, imo. Just like it's unfair to make an employee work 10 days in a row before you pay him overtime, it's legal but it's still not the right thing to do.

I included a Commission Agreement and sent that to the Seller for their signature.

I could join the MLS but couldn't in time to present the offer -- I'll get agreements in writing for commission from now on.

Never in my life have a wanted an offer to be rejected more than this one. He's not acting in the Seller's best interests.

The agreement you need signed is with this agents broker not the seller. The seller has already agreed to pay the listing broker and now you need to get the listing broker to share it with you. A signed commission agreement with the seller probably won't do you much good.

how long have you been in this business?? LOL

I'd just categorize this as an expensive lesson that won't have to be learned a second time. Most of my Competitors are very generous with their earnings AFTER a Closing; but toe the line when it comes to their Contracts, and Offers of Cooperation. They don't give anything away unnecessarily.

If memory serves me correctly

This falls within Basic Education 101

Who are you working FOR,

When and how you will be COMPENSATED; and

That you have it all IN WRITING

Now, in the event you had a Buyer's Agreement in place with the buyer being responsible for your compendation and any short-fall in the compensation as may be received from a Listing Broker, then the Buyer has a definite interest and nothing prevents the buyer (definitely not you as that would be unethical) from personally contacting the seller and informing the seller that their agent refuses to adequately share their commission in relations to a possible sale and certainly not in the best interest of either the sellers or the buyers, who would like to purchase the seller's property.

In most instances, a Listing Broker is deemed to have a fiduciary obligation to their seller and are required to act in the best interest of their seller.

Further, in the event the Listing Broker fails to fulfill or breaches their fiduciary obligations to their seller, the seller may be justified in denying compensation to the Listing Broker on the grounds that they "Breached their Fiduciary Duty" due the seller.

Listing Brokers, once made aware of the all the facts have been known to become more co-operative.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .