So here's the question, the MLS says 10K bonus to selling agent. No conditions, no stipulations like, for full price contract, if closed by x/x/09. Just 10K bonus to selling agent. I write a PA in April, the first thing that the seller strikes is the bonus. Not really shattered because in the overall picture the offer was low but in reality, that's why we are negotiating. The deal never takes off.

A month later we are back at it, the bonus is still unchanged in the mls. I write a new offer that is 90% of asking with a quick ( three week) close. The listing agent says looks good but I know he is striking the bonus.



So my question is how does one pursue this without messing up my buyer's deal?

1. did the seller ever intend to give a bonus and if so under what conditions?

2. should we be permitted to write anything in our MLS and not have to back it up? I've known of agents who said there were ceiling fans when there weren't and had to produce them!



I know this is a broker question but I'd be really curious to hear your responses!

Without including some type of stipulation (like full price offer, closed by XXXXX date, etc.) I think you have a legitimate case for the bonus. Will be interested in hearing other opinions.

Seller doesn't have to pay broker any compensation at all unless terms of listing are met so they can pretty much change/negotiate anything unless a full price non contingency offer is written.

Sounds like they played the system to get noticed. Had you brought a full price offer in you'd likely be entitled to the bonus.

Kind of what I figured, but I'm not sure the property would even appraise at the seller's price!
What bothers me is the "pitch" This is not a luxury home! 10K come on, isn't that pretty lame anyway?
What stops anyone one from making incredulous remarks knowing they will probably never have to pay it? Ethics anyone??

Actually commission is spelled out in the broker's listing agreement and what co-op and any bonuses there are going to be.

Yes the seller would not be obligated to pay BUT the listing broker could get into trouble by the mls and also an ethics voilation(realtors only) for non-full disclosure.The MLS has santions for voilating the rules and it will not make the agents broker happy whatsoever.


If the broker doesn't police their agents it hurts the brokers image. Word will get around of these tactics and buyers brokers/agents won't want to show their buyers these listings.

Basically they are trying to suck them in without disclosing a condition. It would be better to not waste everyone's time upfront than to play these games.

I would not let it stop the deal or fight the listing agent over it. I would get the deal in escrow and then have my Broker fight over the bonus with the other broker. It does not say "seller" is offering it, it says the Broker is offering it, so it should not be part of the contract anyways.

If need be I'd even split the bonus with my broker for the time, expense, and aggrevation it would cause. Hepefully the other Broker would roll over and settle it. It would be bonus money.

I wouldn't let this mess up my deal for my buyer! I do need the documentation of the seller and lister initialing the strike from the contract don't I?
My intent is exactly what you have stated, close the deal, and save the trouble for my broker, the split idea is good. Of course half of nothing is nothing!

I had a situation with a Bonus. It was an REO property, Bonus in the MLS to selling agent (No stipulation,no conditions, if closed by XXXX date. One day before close, bank said will not pay Bonus because offer was never accepted by such XXX date. Listing agent never disclosed throughout transaction.
Went to arbitration and We WON!!!!!!!!!Listing agent Broker had to pay up .....Lesson learned......watch out what you put in the MLS,Disclose!Disclose!Disclose! Treat others as you want them to treat you. Bait and Switch>>unacceptable

"It does not say "seller" is offering it, it says the Broker is offering it, so it should not be part of the contract anyways."

see:

"I write a PA in April, the first thing that the seller strikes is the bonus."

I would think that if the seller crossed it out and initialed it as part of the counter, the seller successfully negoitiated the non payment of the bonus? Compensation should not be discussed in the purchase contract. Compensation is dealt with between seller and his broker and between the brokers via a co-op on the MLS offering.

I could be wrong though.

I think the core issue is I wouldn't allow my agents to be doing such nonsense and causing problems for my brokerage.

If they were at my brokerage they would be reprimanded and not allowed to do business this way. Honesty and integrity go a long way in this business. As a broker running a company you are in it for the long haul and alot of agents faulter real quick in the biz so they will try any tactic to make a quick buck. These are why company systems are kept in place to keep agents in line.

I agree I wouldn't make waves but as my first brokers said. "Always be nice because at the end of the day we all play in the same sandbox. That one client or customer you deal with once or twice on average but colleagues you will be around all the time."

Now that's what I want to hear! It's not really the bonus per say it's the principal. I'm sure if this were my listing my broker would be jumping up and down if he knew about it! When we make a "mistake" we need our e and o to cover it, I don't really see this as a mistake, it's more like a blatant bait and switch...Odd thing is the lister is the one who told me about the bonus I didn't even see it until she mentioned it!

oh he did strike it the first contract this is a new contract with a new date... if he strikes it this time, and initials my first thought would be to put it back in at a graduated rate, like this is a 90% offer, I could easily write in 5K, couldn't I? or just leave it alone until after the deal closes?

Ultimately it's the listing broker and the selling broker that are handling the transaction and must review it. I would get guidance before this gets too messy.

I think Compensation should not be discussed in purchase contract, for the best interest of your clients. Contract is between Buyer and Seller . I would ask your Broker.