FAQ – “In REALTOR® remarks it states ‘No commission payable to buyer’s agent unless present at first and all subsequent showings.’ Is this enforceable?”
In this video Steve Jamieson, Managing Broker of RE/MAX Crest Realty Westside, explains the enforceability of reduced commission offered by listing agents in certain scenarios.
Here’s a brief summary:
Written instruction from seller required
This contingency is allowed, however the instruction must be written in the listing contract or on a separate document signed by the seller.
Some agents are of the mistaken belief that they can insert the instruction at their whim, without authorization from the seller.
To verify that the listing contract does in fact include this instruction, refer to your Managing Broker, who can then contact the Real Estate Board for confirmation. In most instances you will find that the instruction is authentic.
Do open houses count as a first showing?
An open house is public domain, and the general understanding is visiting an open house does not count as a “first showing”. The issue has never been taken to the REBGV for arbitration, but the Arbitration Committee at the Board has said that if the question arises, they will rule that open houses will not be considered a first showing.
If your client does visit an open house, make sure that you are present for any subsequent showings, inspections, etc. to be sure that you will be paid the full commission.
While we sometimes see statements about reduced (or no) commission payable in certain situations, we do not recommend that you use this practice for your own listings. It does not benefit your client in any way.
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.