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Cooperating Broker Compensation & Availability of Property for Viewing
We Are Happy to Cooperate with You!
While available for sale and in accordance with the National Association of REALTORS® recommendations, Better Living Real Estate® is making our MLS (Multiple Listing Service) listed properties available for viewing and consideration by buyers and their cooperating brokers. A cooperating broker is defined herein as any real estate licensee acting as either a contracted BUYER REPRESENTATIVE or FACILITATOR, and who is the procuring cause of the sale. Better Living Real Estate® does not offer subagency.
If a seller elects to privately offer cooperating broker compensation, also known as cooperating broker commission, as part of the listing agreement with Better Living Real Estate®, then that amount and form of compensation will be made available to the cooperating broker upon request by the cooperating broker, and if accepted by the cooperating broker, shall be incorporated into the final purchase contract.
The seller's offer of compensation will not be published in any advertising or in the Multiple Listing Service (MLS) as recommended by the National Association of REALTORS. In lieu of any published cooperating broker compensation being offered or not being offered in MLS, a cooperating broker has the option to communicate with the seller's listing broker to inquire about a private offer of compensation made by the seller, if any.
It is important to note that commissions are not fixed, controlled or recommended by law or by any person or entity.
Real Estate Commissions are fully negotiable.
A seller may or may not offer cooperating broker compensation as part of their listing agreement with Better Living Real Estate®, and a cooperating broker or buyer may request cooperating broker compensation other than that offered by the seller. Better Living Real Estate® recommends that any request or confirmation of cooperating broker compensation be disclosed and made part of the buyer's "offer to purchase" contract when initially submitted to Better Living Real Estate® for the seller's consideration.
Fannie Mae, Freddie Mac and other loan issuing and underwriting entities allow real estate broker commission and compensation to be made part of a purchase contract and included as part of the purchase price, financing, closing and settlement of a sale.
ALTERNATIVE COOPERATING BROKER COMPENSATION: Regardless of any offer of compensation to a cooperating broker being offered by a seller, the cooperating broker has the option to request compensation be included in the purchase contract, based on their employment contract with the buyer. The following recommendations are made to cooperating brokers by Better Living Real Estate®:
OPEN HOUSES: A cooperating broker may send their buyers to a publicly available and advertised open house without accompanying the buyer, although we always welcome a cooperating broker to attend with their buyer. If the cooperating broker isn’t able to attend the open house, we invite the cooperating broker to visit the property prior to submitting an offer to purchase.
BUYER SHOWINGS: Other than an Open House, the cooperating broker shall personally attend and accompany the buyer for all scheduled showings, inspections, buyer visits and any appointments required or requested by the “buyer side” of the transaction. If the cooperating broker is not available to attend an appointment, then the buyer needs to be accompanied by another real estate licensee contracted to represent the buyer, preferably from the cooperating broker’s brokerage, unless other arrangements are specifically made with Better Living Real Estate® and agreed upon in writing prior to the showing. The cooperating broker’s professional conduct and personal involvement in the real estate process will be disclosed to the seller when presenting an offer to purchase and may influence the seller’s decision.
LOCK BOX ACCESS: DO NOT provide lock box code, combination or access to the buyer(s) or any other person or entity that has not been authorized directly by Better Living Real Estate® and is not a real estate licensee contracted to represent the interested buyer.
Disclosure of Cooperating Broker’s Representation Relationship and Compensation: If the cooperating broker desires compensation, then the cooperating broker must disclose their contracted representation relationship with the buyer (buyer representative, facilitator, etc.) and specifically write the amount of requested cooperating broker compensation as part of the incorporated terms of the purchase contract/offer to purchase. The disclosure of representation and compensation must be made at the time the offer to purchase is presented to Better Living Real Estate® in order for compensation to be incorporated in the purchase/sale price considered by the seller. The seller reserves the right to accept, reject or counter offer the cooperating broker’s request for compensation as a term and condition of the purchase contract, however per the National Association of REALTORS® Code of Ethics, the seller cannot alter the cooperating broker’s agreement of compensation with their (buyer) client by a counter offer of compensation to the cooperating broker's contract.
Sample language that you may consider adding to your purchase contract/offer to purchase for disclosure and transparency:
“Seller and Buyer agree that the buyer representative or facilitator has a compensation agreement with the buyer equal to ___% of the agreed to purchase price, and will collect this amount from the seller or other third party to the settlement as compensation."
If the cooperating broker does not request and include a cooperating broker compensation in the offer to purchase contract, then the cooperating broker will be paid the amount of compensation privately offered to cooperating brokers by the seller, which may be zero, or the amount agreed to by the parties in a "contract to purchase." It is the obligation of the cooperating broker to disclose and include their cooperating broker compensation in the contract to purchase, and is the seller's option to accept any requested cooperating broker compensation as part of the purchase contract. For more information and or questions, please contact the seller’s agent.
Where this information and policy by Better Living Real Estate® may conflict with any laws or regulations made by federal, state or court precedent, then the laws and regulations will govern as it pertains to any offer or acceptance of cooperating broker compensation with regard to the listing and advertising of property, including the Multiple Listing Service and its subscribers.
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