All Forum Posts by: Sol Baum

@Sol Baum, they are both right. That sort of thing is typically negotiable.

However, there may be a commonly expected way of handling it in your area. So, many people in your area may not realize its negotiable and just assume its always handled a certain way.

How about a sales contract with contingencies but with a limit where the buyer can only terminate the contract if their find material defects exceeding a certain dollar amount. So, that the seller knows they won't be nickle and dimed.

A no contingency sale would be more common in a severely distressed non-functional property where there will be so many material defects that the buyer could not feasibly negotiate until they evaluate them. 

Has the client mentioned any agreements - past or present, written or verbal - between them and the principal broker?

Client agreements have expiration dates and oftentimes include clauses that entitle agents to commission several months after the expiration of the buyer agreement. In the commercial space, different rules may apply.

Other than this, you'd have to discuss the logistics with your broker. What I can say is that in any business, it can take years or decades to create and nurture a client relationship. Your broker may feel entitled to an additional split based on past dealings or conversations with this client.

Hello @Sol Baum,

Does the principal broker have a signed (and current) agreement with this party? i.e. single proper Buyer agreement, exclusive buyer agreement, etc.

Does the principal broker her a signed agency disclosure with this party?

Do you have a disclosure or buyer agreement signed with this buyer?

Was there a referral agreement signed at any point for this party?

Lastly, what is on your ICA? Is there any team/commission agreement that you've signed with your broker to outline what the splits are in a situation like this?

If there is no agreement signed and this person is just someone listed from the broker's database, I do not believe it is acceptable for the broker to collect a split in addition to the house split.

If you are to consider negotiating this additional split, there is a lot to take into account here... what is the % of business that you generate on your own vs. how much your broker contributes? How much do you value the broker relationship? How will 5, 10, 25, 50% on a deal affect the business relationship?