So, after the BIG settlement we all need to know this. Your real estate works hard for you. It is work, and we all work to put food on the table. Prior to seeing properties the Consumer (the prospective Buyer for this discussion) will be asked to sign an agreement to pay the agent representing them for their work. That agreement contains a line similar to this one: “A seller or listing broker may agree to pay some or all of the above compensation. If a seller or listing broker agrees to pay Broker for services Broker performs for you, Broker will reduce the amount you owe accordingly.”
OK, so to know the answer to if, and if so how much, the Seller or Listing Broker will compensate your agent, your agent must ask the Listing Broker the question: What box was checked on the listing agreement between yourself and the Owner? Was it 10 (a), (b) or (c):
10) Compensation to Buyer Brokers: Brokerage commissions are not set by law and are fully negotiable. Seller approves the following (check all that apply; if no option is checked then option (c) is deemed to be selected):
- (a) Seller authorizes Broker to offer compensation to buyer’s broker in the amount of______% of the purchase price or $_______________. (This amount will be paid from Broker to buyer’s broker from the compensation amount agreed to in paragraph 8.) This compensation will be set forth in a separate written agreement between Broker and buyer’s broker. (Use Form CABB-1)
- (b) Seller authorizes Broker to offer compensation to buyer’s broker from Seller in the amount of: ______% of the purchase price or $_______________. This compensation will be set forth in a separate written agreement between Seller and buyer’s broker. (Use Form CASB-1)
- (c) No compensation will be offered to buyer’s broker.
The answer to this question will let them know what form (CASB-1 or CABB-1) to use to memoralize that answer, Basically, what box was checked on the Listing Agreement the Seller signed with the Listing Broker and how much are they offering.
Also NOTE that the Realtors Code Of Ethics was updated and now includes:
Standard of Practice 3-2
If compensation is offered or advertised by the listing broker, any change in offered compensation must be communicated as soon as practical. After a REALTOR® has submitted an offer to purchase or lease property, the listing broker may not unilaterally modify the offered compensation. (Amended 1/14, Amended and effective June 5, 2025)
REALTORS® are prohibited from delaying or withholding delivery of a buyer’s/tenant’s offer while attempting to negotiate compensation. These ethical obligations in no way restrict the REALTORS®’ or clients’ ability to negotiate compensation in the clients’ best interest, including in offers to purchase or lease. (Adopted and effective June 5, 2025)
