June
2004 | Index of all Real Ethics columns
You aren't going to be paid what the MLS said you would?
Here is the situation. As a result of a sale made through Colorado Cares, Nehemiah, Neighborhood Gold or other such program, the sale price of a listed property becomes $205,000 instead of the listed price of $200,000. The contract states that the additional $5,000 is to be gifted/granted to a third party.
Here is the problem. Is the commission to be paid on $200,000 or $205,000? Is the seller going to be happy paying commission on the $5,000 he/she did not receive? Could this be the basis for the seller filing a complaint against the listing broker? What amount does the co-op broker expect to be paid? Is it the same as the listing broker expects to pay? How can this dilemma be solved?
The Code of Ethics addresses this situation in Standard of Practice 3-1 and 3-3. The above commission problems should be resolved prior to the sales contract being finalized. Written agreements concerning commissions should be outside the sales contract in separate agreements between the listing broker and selling broker and then between the listing broker and the seller.
Remember, if you agree to pay/receive a co-op commission different than that shown in MLS, the agreement should be in writing, signed by both supervising brokers.
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Each month, the Aurora Association of REALTORSŪ Web site features Real Ethics,
a column by Steve Stazel devoted to explaining Code of
Ethics issues for members. A REALTORŪ since 1974, Stazel is a Professional Standards
instructor and senior Ethics
instructor for the Colorado Association of REALTORSŪ.
If you have an ethical concern or an issue you would like
to see addressed, please call Stazel at (303) 773-3333 or e-mail him at
stazels@msn.com. The comments of this article reflect the understanding and
opinions of the author and do not represent an official expression of policy by the National Association
of REALTORSŪ.
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