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Updated over 6 years ago on . Most recent reply

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Jonathan Bowen
  • Real Estate Broker
  • Stoughton, MA
96
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Interesting question regarding an "agent bonus"...

Jonathan Bowen
  • Real Estate Broker
  • Stoughton, MA
Posted

One of the Realtors in my office is about to have an offer accepted, on behalf of her buyer, on a single family property in Brockton. The listing agent is offering a $500 bonus to the selling agent with stipulations. It's illegal in Massachusetts to deal in net listings so the $500 offer is, on its face, illegal. It's a too common practice though... We deal in percentage bases here in Massachusetts to avoid the practice of net listings. It's also illegal to offer bonuses directly to agents; all commissions flow to the brokerage. As a broker, do you think I should take my office's cut of the "agent bonus". If not, why?

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

There is nothing wrong with offering a bonus to the selling agent, of course this goes through their Brokerage like the rest of the commission.

I can’t possibly see how this resembles a “net listing”.  Also, you don’t have “use a % to avoid net listings”, you can certainly be paid, and offer to the buyer agent, a “flat fee”....has nothing to do with being a net listing.

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