It’s hardly surprising to hear about new listing agreements and buyer representation forms as August 17th draws nearer.
What’s more surprising is when a particular Realtor form stands above the rest—or when it stands below them.
In yesterday’s episode of The Real Word, after a lively discussion with special guest Ricky Carruth, Byron Lazine and Nicole White reviewed the new listing and purchase agreements issued by Las Vegas REALTORS®.
Two particular sections stood out—one from the listing agreement and the other from the purchase agreement.
Let’s take a look.
Las Vegas Listing Agreement
In their review of the new listing agreement for Las Vegas REALTORS®, Byron and Nicole focused on section number five: “Compensation to Broker.”
“5. COMPENSATION TO BROKER: COMPENSATION/COMMISSIONS ARE NOT SET BY LAW OR BY ANY 11 REALTOR® ASSOCIATION. THEY ARE FULLY NEGOTIABLE. If during the Listing Term, Seller sells the property and the sale closes, or the sale fails to close due to Seller’s breach of the terms of the Residential Purchase and Sale Agreement, Seller shall pay the following:
“The Seller agrees to pay a commission of_______% and / or $_______ of the final sale price or lease amount to the Listing Broker upon the successful closing of the subject property. This commission is exclusively for the Listing Broker’s services and is not subject to sharing, splitting, or otherwise distributing to any Buyer’s Broker or agent. The Seller acknowledges that any commission arrangement with a Buyer’s Broker, if applicable, must be covered by a separate agreement/Residential Purchase Agreement and is not covered under this Listing Agreement.”
The language could not be any clearer in its intent to rule out commission sharing. So, as with eXp’s new listing agreement, Realtors who sign the document confirm their agreement not to share any part of the seller-paid commission (for listing agent services) with the buyer broker.
Any compensation to the buyer representative/buyer agent must be stipulated in a separate signed agreement or addendum.
Las Vegas agents: Has this changed the way you talk to your buyers and sellers? We’d love it if you’d share your experience and thoughts in the comments.
Take a look at the new listing agreement below, or download it here.
Las Vegas Purchase Agreement
For the Las Vegas Residential Purchase Agreement, Byron and Nicole reviewed section number two at the top of page two: “Buyer Representation/Buyer Broker Agreement”
Here’s how it reads:
“At the close of escrow or the exchange of the subject property, Seller shall pay the Buyer’s Representative/Buyer’s Broker (“Buyer’s Representative/Buyer’s Broker”) ____% of the gross sale price of the property or $____. Upon execution of this Residential Purchase Agreement or subsequent Counter Offer(s), this clause is no longer negotiable exclusively between Buyer and Seller and any modification thereafter must be ratified in writing by the Buyer’s Representative/Buyer’s Broker.”
Byron highlighted the final sentence, specifically the language about the compensation clause not being negotiable between the buyer and seller upon execution of the agreement.
I think it’s very interesting that this is built in. Because it’s almost, you could argue, suggesting you should ask for it as opposed to saying this is an option.
Byron highlighted the final sentence, specifically the language about the compensation clause not being negotiable between the buyer and seller upon execution of the agreement.
So, I love that because…I’ve always told you that I was always so concerned about the point where, okay, we’ve agreed, and then we get into an inspection situation. And say a septic failed. And now the seller has to pay $25,000 [to replace it]. Are they then renegotiating at that time what they’re going to be giving you? …’Don’t pay her; put in my septic’?
Read the full residential purchase agreement below, or download it here.
All the more reason for you, as an agent, to continuously develop your negotiating skills—and to make sure you fully understand the forms you’re using.
Both Byron and Nicole are looking forward to seeing and reviewing the Las Vegas buyer agreement form as soon as it’s available.
Watch the full Real Word episode here to get all the details:
We’re always keen to hear what agents in the field think of the forms provided by their Realtor associations, especially with August 17th less than three weeks away.
So, wherever you serve as a real estate professional, we’d love it if you’d take a moment to comment and share your perspective. And while you’re commenting, let us know if you’re planning to join us in Vegas at BAM Mania on October 17-18.
If you’re not signed up yet, take a look at the event page to see what we’ve got in store for you. And grab yourself a ticket while they last. Better yet, invite a fellow agent to join you!
