Do Real Estate Agents Split Commission? [2020] | Hauseit®

Do Real Estate Agents Split Commission? [2020] | Hauseit®


Are listing brokers legally required to co-broke
with buyers’ agents? Do real estate agents split commission with
each other in New York State and NYC? Contrary to popular belief, listing brokers
are not legally required to share commission with buyers’ brokers unless they have an
existing agreement in place, such as a MLS co-brokerage agreement. However, it is the opinion of New York’s
Department of State that listing brokers must oblige a buyer’s desire to have their own
representation. In other words, listing brokers are required
to let buyers have a dedicated buyer’s agent if they wish, but they are not required to
split commission with the buyer’s Realtor unless the two brokerages have an existing
commission agreement in place. So do real estate agents split commission
in practice? Yes, because Realtors are members of a local
MLS that enforces the splitting of commissions through a mutually binding co-brokerage agreement
that each brokerage must sign before joining the MLS. According to an opinion letter from New York
State’s Deputy Secretary of State Renato Donato, Jr.: In prior opinions, the Department of State
has stated that a listing’s broker must always honor the buyer’s right to be represented
by his or her own broker, and that the listing broker cannot refuse to work with a buyer’s
broker. The listing broker is not, however, obligated
to share the sales commission with the buyer’s broker unless, prior to the sale, the two
brokers have agreed to do so. Do Real Estate Agents Split Commission with
Brokers Who Are Not Part of the MLS? Just because you have a broker’s license
does not mean that listing brokers must share their commission with you. You must also be a member of the local MLS,
or REBNY if you’re looking to purchase in New York City. This fact is often misunderstood by lawyers
who also happen to have a broker’s license on the side. Just because you are licensed does not entitle
you to an automatic co-broke! That’s why it’s important to work with
a trusted buyer’s broker who is a member of the relevant local MLS in order for you
to receive a buyer closing credit. Hauseit partner brokers are members of REBNY,
the Hudson Gateway MLS and/or the Long Island MLS. As a result, you’ll never be in the uncomfortable
position of finding out that a listing broker refuses to co-broke with your buyer’s agent! Our partner brokers cover Westchester, Bronx,
Orange, Putnam, Queens, Dutchess, Ulster, Rockland and Sullivan Counties through the
HGMLS. Our partner brokers also cover Nassau, Suffolk
and Queens County through the Long Island MLS. And of course, New York City is covered through
our REBNY Member Partner Brokerages. Learn more about how you can save $20,000
or more on your purchase through a buyer closing credit at www.hauseit.com

Comments

  1. Post
    Author
  2. Post
    Author

Leave a Reply

Your email address will not be published. Required fields are marked *