question about NYC Real estate agent commission & scams

question about NYC Real estate agent commission & scams

Member since 2020 · 1 post · 0 votes

Hi, all. I have a question. I was speaking with the NY Department of State (EaccessNY) about possible ways to obtain my RE salesperson license (I passed the exam) during COVID19 and was wondering if they had some program that was assisting new agents because of the pandemic (I had just started working another unrelated job on the side, but my job closed), they told me that they were only postponing the expiration. I consulted with them because there are scams in the real estate industry . I asked them if all brokers charge a fee to split the commission, because I saw a review about a broker that did that in NYC. The review said that the agent had to pay $25,000 to split the commission . I have a question, do all brokers do this to agents, I understand the 50/50 split (like when the agent splits it with the broker and the broker takes half, but do brokers charge extra/overcharge the agent (I also heard of a broker charging a $500 security deposit fee to an agent when they join, I thought it was only charged to renters) ? Also, the NY DOS told me to look at a section in the laws on what the brokers are entitled to charge me, ( I tried looking and was not able to find it) , so I decided to ask on here (I know about the monthly MLS fees, that they can vary, also , is there a way to use an MLS service for free or do you always have to pay for it? I ask because I saw a broker that supposedly charges $0 on a 50/50 split but $500 on a 100% split, but that broker has many reviews that paint them as being scammy ). What are brokers entitled to charge me besides monthly MLS fees , transaction fees and, anything else? (I plan on working from home) and what scams should I avoid when joining a brokerage? I have all these questions because of the scams that happen in the real estate industry and I do not want to fall victim to a scam , especially in the midst of this pandemic.

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  • David BellPro Member
    Real Estate Agent · East Brunswick, NJ · Member since 2016 · 129 posts · 63 votes
    6y

    So it seems  NYC operates a bit differently but my  brokerage is operating there and we don't have fees like that.  Also our split is 80/20 for everyone.  Only caveat is new agents in  the mentor program pay an additional 20 % for first 3 transactions to their mentor and university.

  • Member since 2020 · 6 posts · 2 votes
    6y
    Originally posted by @David Bell:

    So it seems  NYC operates a bit differently but my  brokerage is operating there and we don't have fees like that.  Also our split is 80/20 for everyone.  Only caveat is new agents in  the mentor program pay an additional 20 % for first 3 transactions to their mentor and university.

    Thank You for your insight, David!! Yeah , I quickly noticed these fees amongst many NYC Brokers.

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    Plenty of brokers charge fees. I cut a check to my broker every year for what you would probably consider a hefty sum of money. 

    Remax charges a monthly fee of about $1k for instance.

    There are many different fee structures at brokers.

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