This week we are sharing about listing contracts and scenarios on how to fill out the forms to properly get what you and seller are intending.
We are still seeing that every office and brokerage are doing things a bit differently. They are giving different advice and have different rules setup for their brokerages. It is incredibly imperative that you speak to your Broker and find out how they want you to discuss commissions with buyers and sellers and exactly how they want the forms completed.
We are already seeing major errors and mistakes on documents. The most common mistakes this past week are the buyers brokers collecting commission from the listing broker and directly from the seller by using cooperative broker compensation form ( and/or filling out lines 129-134 sharing commission) AND entering commission on the purchase agreement. Basically buyers broker getting paid twice, seller paying extra commission.
Below is our visual tool for the week provided by Keller Williams Premier Realty Lake Minnetonka. They have been great for providing education and communication as we all navigate through the changes and our new normal. Please fell free to contact Kamie Augustine if you want to learn more about the education provided at KW.
We will continue to send out regular communications for education as we receive it from our local brokerages to aid in your education on how to properly use the forms to protect your income. If you have specific questions about a unique transaction, please reach out to your Broker. Your Broker will ensure you stay compliant within your companies policies and ensure that you are properly compensated for your efforts.
Eventually, this will be the regular way of doing business, but in the meantime, we expect that you will encounter co-op agents that understand the forms differently and/or have no understanding of the new forms, so please be patient with them and us as we try to help navigate all the nuances these NAR changes have set into motion.
Profile TM is here to help in every way we can; however, like our other form completion services, the agent (you) have the responsibility for the content that’s entered into every form. Unlike most of the content that’s entered into a purchase agreement, these form changes have tiny variations or errors could dynamically and dramatically impact your income. It’s important for you to educate yourself through your office or NAR.
We updated our commission email to the title companies to help add clarity, see example (below, to your right etc where every it fits).
Our goal is to provide a second set of eyes to the best of our ability. We will continue to ask some basic questions for clarity. If we see something that doesn’t look “right” we will mention it and confirm what was requested is accurate. You, as the licensed Realtor, need to be extremely specific and clear on how you want the forms filled out, including line numbers for reference, exact text quotes and proper title of the forms you’re referring to AND exactly what line you want certain percentages or numbers entered.
We, along with your title company and brokerage, are here to support you as you learn to navigate these new processes.
