As you are all aware, commissions are non-negotiable.  (see by other blogs on setting commissions) and on (buyer broker commissions within FHA loans).

But what if there is an issue with the commission?  Can the listing and selling broker reduce to writing an agreement to reduce commission?

Well, you as listing agent are between a rock and a hard place when the commission is being negotiated.  You should gain the opposing broker’s approval and even then a negotiated commission may not be enforceable.

Recent examples are when you as the listing agent neglected to warn a selling broker that the commission may be reduced by the lender of the property.  (See my blog on this issue).  But now the lender is validly reducing the commission.  Well, since you did not warn the selling broker, you as the listing agent are stuck in paying the full commission.  “Hail Malthus!” you say?  No, you mustn’t give up yet.  If the selling broker is willing to work with you, you can mutually negotiate a compromise.  The problem is that it is not clear if the selling broker still has the right to file a grievance for commission with the Greater Las Vegas Association of REALTORS® under Article 17.  I believe that if the selling broker executes the attached document, you should be safe [see attachment]

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