FAQ – “I showed my buyer a listing that had a commission of 3.255% on the first $100,000 and 1.1625% on the balance, but when I went to write an offer, I noticed that they changed the commission to only $2,000. Is this allowed?”
In this video Steve Jamieson, Managing Broker of RE/MAX Crest Realty Westside, explains the procedures that a listing agent must follow when a cooperating commission is reduced and how it impacts the buyer’s agent.
Here’s a brief summary:
Communication is key
The seller can change the commission at any time. It could be increased or decreased. e.g. perhaps there is a selling bonus that has been added on the original listing contract, and the seller has decided to no longer offer that bonus.
Any such changes must be made in writing on a listing amendment form, and signed by the seller before amending the commission on the MLS® system.
If the property has been shown, the listing agent must inform buyer’s agents of any change in commission prior to an offer being written.
Refer to RULES of COOPERATION of the CADREB, FVREB and REBGV.
3.14 Changes to Listing Information
Any changes to MLS® listing information must be communicated by the Listing Brokerage to any Cooperating Brokerage or potential buyer that shows interest in the property, from the time the change was made and until such change has been published on the MLS® and such period of time thereafter as is reasonable in the circumstances. (Rule quoted in part)
If a Contract of Purchase and Sale has been written and negotiations have started, then the cooperating commission is protected.
Please note: The Frequently Asked Question video series is used for training purposes within our group of RE/MAX offices. If you are licensed at a different brokerage, you must refer to your own Managing Broker for advice.