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Updated over 1 year ago on . Most recent reply

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Aaron Gough
  • Real Estate Broker
  • Phoenix, AZ
3
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16
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Question for TX brokers from an AZ broker

Aaron Gough
  • Real Estate Broker
  • Phoenix, AZ
Posted

In AZ, sometimes an unrepresented buyer will want to buy a property I'm listing. In order to make their offer stronger, they will ask me to apply the commission normally reserved for the buyer's agent to their offer. In AZ I'm under no obligation to do that--the commission agreement is between me and my seller. If there is no buyer's agent, then I retain the full commission including the buyer's side commission regardless of what an unrepresented buyer asks. Now of course if the unrepresented buyer asks me to be his agent and I agree, and then asks me to apply the buyer side commission to his offer, I can choose to do that or not, in full or in part, at my discretion. But in AZ an unrepresented buyer has no power to dictate what happens to commission in any way.

How does this work in TX? If an unrepresented buyer asks you to give up the buyer side commission for him to strengthen his offer, what are your legal options and obligations?  I know we each have our own policies as to how to handle these situations, but I'm wondering what the law says about your obligations in these situations?

Most Popular Reply

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Greg H.
  • Broker/Flipper
  • Austin, TX
4,243
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Greg H.
  • Broker/Flipper
  • Austin, TX
ModeratorReplied

TREC permits a broker to be an intermediary and negotiate the contract with permission in writing from both parties.  Larger firms often require an agent within the firm to be appointed to advise the other party.  There are no issues with forfeiting the selling agent commission 

  • Greg H.
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