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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In honor of Memorial Day, which commemorates U.S. men and women who have died in military service to their country, I post a photograph of my Uncle James Welsh (Eldest brother of my father Myron Welsh). As you are aware “net sales listings” are not allowed within our MLS at this time.  Read this MLS Tip Sheet from GLVAR. (This topic is on page 5 of the Tip Sheet.)  Recently at the Mid-Year National Association of REALTORS meeting, this topic came up.  

  • Gave MLSs discretionary authority to enable participants to offer cooperative compensation through the MLS as a percentage of the net sale price. The net sale price is the gross price minus seller concessions and new-construction buyer upgrades.

These changes are not automatic; and our local GLVAR will have to vote if it is to be adopted.  We here at Prudential®, Americana Group, REALTORS® anticipate that  the annual Participant’s meeting may be held next month just for this purpose.

 If this is passed the measure would not be restricted to REO or new home sales, but rather would open the door to virtually any listing being able to be offered in this manner. 

 Since, a majority of sales include Seller’s concessions it will affect most every REALTOR®.  If you have an opinion you should contact your Directors at http://www.lasvegasrealtor.com/site/committees.asp?code=08BD and let them know it.

 I will keep you posted as I learn more.

As you know the Greater Las Vegas Association of REALTORS® Multiple Listing Service sign on page is requiring the following be acknowledged.  [Stop-Read-This].  This memo from the Board is quite clear and informative, I suggest you read it a few times.  You might also note that each of these hints and examples have been on your Legal Blog for many months. 

So when you are at a pool party this weekend, you can let your fellow REALTORS® know that your legal department’s blog on REOs:

https://ameglegal.wordpress.com/2007/11/09/tgif-legal-tip-resale-packages-for-nevada-reo-sales/

Foreclosures:

https://ameglegal.wordpress.com/2007/04/27/tgif-legal-tip-foreclosuredeficiency/

Short Sales:

https://ameglegal.wordpress.com/2008/02/08/tgif-short-sales-from-the-listing-agents-perspective/

are cutting edge and already defined each of these terms and created multiple Addendums and helpful hints for you.  When they stare at you in disbelief, looking pale in their terry cloth, realizing the lost opportunities by not being at your brokeraage, freshenup their ice-tea drink and give them Michael Hinton’s phone number at 702-499-0668 (Americana’s Recruiter) and tell them it is time for a successful change.