Recent Legal Hottips

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Question:

If a seller has approved a listing firm offering compensation and agrees to an offer of compensation to buyer`s agents/subagents in the listing agreement, does that mean the listing agent is obligated to offer it to all? Or can the listing agent choose the situations and the agents they want to offer compensation to, and are they required to offer the full amount that is in the listing contract?

Answer:

It would seem the offer of compensation should be made to all cooperating agents in the name of consumer transparency. If the seller approves a listing firm to make an offer of compensation to cooperating firms, presumably the listing firm should relay that information to cooperating firms. That would appear to be the seller`s intent, and the listing firm should not be making a decision that is the seller’s decision or substituting its judgment for the seller client.

Article 1 of the REALTOR® Code of Ethics says: ...