Hi Cobra, here is a section of the Texas License law that you may be interested in seeing before you take any further steps in trying to collect a commission as an unlicensed person.

§ 1101.004. ACTING AS BROKER OR SALESPERSON. A person
acts as a broker or salesperson under this chapter if the person,
with the expectation of receiving valuable consideration, directly
or indirectly performs or offers, attempts, or agrees to perform
for another person any act described by Section 1101.002(1), as a
part of a transaction or as an entire transaction.

The Real Estate Commission is in place to protect the public, meaning both buyer and seller from inexperienced persons conducting or negotiating the sale or exchange of real estate.

There are certain things that you need to know in order to negotiate a transaction. Such as the laws of your state and the consequences if the law were to be broken.

§ 1101.351. LICENSE REQUIRED.
(a) Unless a person holds a license issued under this chapter, the person may not:

(1) act as or represent that the person is a broker or
salesperson; or
(2) act as a residential rental locator.
(b) An applicant for a broker or salesperson license may not act as a broker or salesperson until the person receives the license evidencing that authority.

You may negotiate the sale of your own home or a purchase of a (your)new home without a license, but inorder to recieve COMPENSATION, not only commission you must in fact have a license or a work permit.

It is in your best interest to secure a buyers agent if you are going to be doing transations with a seller who has a licensed real estate agent working on their behalf.

If you are looking to get money back from the sale, a "commission" if you must. Get a buyers agent and ask for 3% back at close, that way you aren't taken advantage of and you have a knowledgeable person backing you up.

We are licensed for a reason, if any idiot could do it, then there wouldn't be a license law in place and real estate wouldnt be a thriving business.

In case you want to know more, here is the web address for the Texas OCCUPATIONS CODE

TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND HOUSING

SUBTITLE A. PROFESSIONS RELATED TO REAL ESTATE

CHAPTER 1101. REAL ESTATE BROKERS AND SALESPERSONS

SUBCHAPTER A. GENERAL PROVISIONS

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Jaime

And here it is since I didn't put it on the last one, sorry.
http://www.capitol.state.tx.us/statutes/docs/OC/content/htm/oc.007.00.001101.00.htm

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Jaime

"Why should the selling agent get to keep it? H/she was ready, willing, and able to give it up to a buyer's agent who brought a qualified buyer to the table. That person is me, in this case."

Reason #1 - most agent's bringing a buyer to the table are SELLER's agents. They work for the seller. That is how this system was originally set up. Agent's agreed to allow each other to show each other's listings on the understanding that, as soon as that agent with the buyer walks in the door he/she works to sell that house IN THE SELLER'S BEST INTEREST. Are you working in the seller's best interest and trying to get the highest price for him? No.

(When Buyer Representatives first came on the scene, listing brokers refused to give them the "split" because the agent was representing the buyer NOT the seller. Over time, brokers realized the value of a well educated, pre-approved buyer CLIENT that was represented and had a hard time justifing excluding Buyer Reps over procuring cause and not reducing the listing commission. Still - to this day - most exclusive agency agreements read that the BUYER must pay his agent. BAs must get permission from their buyer client to request the split offered by the listing agent.

Because of this, a listing agent must encourage the seller to pay a suitable "Buyer Broker" fee, which we build into the commission. So really, the seller DOES pay the Lister X% and the Buyer agent X%

Reason #2 - As an agent, when I get paid it's not just for that one transaction. I spend hours upon hours educating buyers, driving them around, writing offers and then the buyer decides he's going to rent. I spend money out of my own pocket for advertising a listing where the seller insisted on overpricing, but promised to lower if it didn't sell and then let it expire so he could list it at the lower price with a new agency.

So, I figure I have truly earned any commission I get paid - buyer or seller side - and I do not negotiate. Our compensation is "nothing" for a lot of work and seems to be a lot of money (to the unknowing masses) for a "little" work. It all comes out in the wash for us. It has to or we would never do this job in a million years! What other business do you know of that will work and spend money for 6 months without any guarantee of payment of some kind??

So, to you, that $12,000 is payment for going to a few open houses and filling in the blanks of a contract. For us, it's just compensation for endless hours/months put in that didn't result in compensation.

So, did you "earn" that commission by our standards? I think not. Do I educate my sellers to know what is best for them and that THEY are paying 1/2 the total commission to my company and they other 1/2 to the buyer agent's company? You bet! Think they will want to pay that 1/2 straight to you - the buyer? Um, would you do that when you sell?

Just a note: I'm not hostile, just showing you the predominate attitude you will run into. And, if an agent has properly prepared their sellers, the sellers will take their side, too.

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Real Estate Consultant
Milwaukee, WI
http:BestMilwaukeeHomes.com

In Iowa, we have Designated Agency at many brokerages. We work for either the seller OR buyer, unless disclosed dual. There are very few Consensual Dual agencies, where all agents in the same office work for the seller.

I would be curious if other states still operate under "all agents work for the seller". I thought this was years ago.

Cheri, Realtor in Iowa

You could also cut you own hair and save a few bucks, right?

Have you ever tried to save a few bucks by doing something yourself, and found that you actually did not have the professional training to do it correctly? Maybe you treid to fix your own car, the electric system in your home, or even tried to fix your TV or DVD player?

Sure, I bet everyone has, at least once.

And then, it ended up being a huge mess, took twice the time, and money, and in the end, you had to call an expert to come in and fix the mess, or worse yet, buy a whole new item? You ended up frustrated, short on time, and money. Why not do it right the first time, and work with a professional real estate agent?

Don't take a risk with a $400,000.00 transaction. Hire a professional, and save yourself the frustration, money, and time. It will be well worth it.

email me, and I can reccomend a great agent in the texas area that is a true professional who can save you that time, money, and frustration. You will be glad you did.

Scott
smarlow92@yahoo.com

We still do in Wisconsin. It sucks.


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Real Estate Consultant
Milwaukee, WI
http:BestMilwaukeeHomes.com

The simpliest way to do this would be to negotiate it into a price discount.

Most states forbid cash rebates to unlicensed persons, i.e. buyers.



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Jim Lee, CRS, ABR, GRI, e-PRO
Realty Executives Associates
Knoxville, Tennessee
http://www.KnoxvilleMLS.com
Jim@KnoxvilleMLS.com
1999 REALTOR of the year, Knoxville Association of REALTORS

I am not an attorney and am not giving you any legal advice. This response is only given for information purposes and should not be construed or substituted for legal advice.

So, did the Cobra fella ever get to buy his home? I am not a realtor, I have had experience in researching property that I wanted to buy.

Research and knowledge and clarity are always recommended. Seeking new skills and broadening horizons are great. Getting the best price a buyer can when buying a home is not only helpful to the budget, but satisfying to the soul.

I, however, see a "nitpickyness" to all the qualifying that Cobra did to the point of adsurdity. I wasn't offended by all the questions he asked. There came a point when the dialogue and debate and questions and clarifying seemed utterly futile. With the energy spent when all Cobra really was seeking was the best deal on a supposed desire for a specific house? In some of the markets I've witnessed, that house would've gone into escrow LONG before this thread came to a conclusion.

Cobra, my hat's off to you for wanting the best arrangement for purchasing a house. But I wonder at your direction.

Cobra,

Unless the TX real estate commission prohibits the paying of buyer commission rebate, go for it. I suspect it isn't illegal since Texas-based onepercentusa.com offers rebates up to 2%. They will keep no more than 1% of the buyer side commission.


>>>>>>>I find it interesting that so many of you depict the agent as the decision-maker; and even more interesting that such decisions are made whimsically>>>>

I agree. Most agents engaging in decision making are unaware that they may be breaking the law.

The arguement that it is illegal for an unlicensed individual to receive compensation from a real estate transaction is FALSE. The truth is it is illegal to receive compensation when providing real estate services for ANOTHER. You are doing it for yourself and also party to the transaction. It is perfectly legal, subject to disclosure on HUD-1.

If you can find a buyers agent that will go for your proposal go ahead. It's not illegal.

However, compensation between seller and the listing agent is in contract and determined ahead of time. This compensation is between the seller and the listing agent. The listing agent does not have to give a single dime. There may not be any commission given to the buyers agent.

What the listing agent offers the buyer's agent in compensation is between the agents. NOT YOU.

What you pay or receive as rebate from YOUR agent is between you and your agent. NOt the listing agent.

There are three seperate contracts at discussion here. The only contract you have influence over is between you and your own agent. Since you will not be using an agent, you have no leverage.

If you want a rebate, go hire someone like onepercentusa.com. What your are doing is neither illegal or unethical. It's smart consumerism.

But to beat the system you must beat it at
it's own game.

If I were the listing agent, I would not give you a single penny. I am not your agent, so I have no reason to discuss commission with you.

Your only leverage is through a buyers agent with a buyers rebate. Of course this assumes that my seller will be paying your agent's commission.

The seller may or may not offer any selling commission. You may have to pay out of your own pocket.

I will advise my clients to accept any offer that nets the highest take home, less my commission.

JABER