A recent court settlement disrupted the prior practice of residential real estate brokers automatically splitting the seller’s commission with the cooperating or buyer’s broker. As a result, residential real estate buyers need to negotiate a fee with the broker that assists them in finding a home and will be asked to sign an agreement with the broker before they assist you. The contract will identify who will pay and how much will be paid to the buyer’s broker. Buyers should require their broker negotiate a commission split with the listing or seller’s broker, eliminating a direct payment from the buyer at closing. Buyers should also ensure that any offer to purchase should identify the buyer’s broker commission and provide that the seller will pay the buyer’s broker commission.
Should you have any questions about retaining a buyer’s broker or how to address a fee, please contact us.
SPECIAL NOTICE
If your business is a government authorized entity with fewer that twenty full-time employees and gross receipts or sales of less than $5,000,000.00 per year, federal law requires that you provide beneficial ownership information to the U.S. Treasury’s FINCEN by January 1, 2025, to avoid possible penalties. You can do so online at https://fincen.gov/boi or contact Brooks, Tarulis & Tibble to assist you.