Re: Brokers client list

[Sol Baum]

Hi all,

I need advice about whats fair when making a deal with a party who's on your principal brokers client list already. As per verbal agreement they consider that their client and collect half of your split( in addition to the house split)...What is reasonable to be considered someones client? Obviously anything can be negotiated or it depends on what you agreed upon, but what do peers in the industry consider acceptable for this and whats considered unreasonable...  Maybe someone can shed light on agreements such as this.

TIA

[Sol Baum]

Quote from @Abel Curiel:

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?

 Abel, Thanks for your answer-these are really great points! And how far back in time would you consider someone a client?   Also why if someone had signed an agreement as a client does it make it that the principal broker "owns" this client in that if you sell the guy a building, it is his...  Not sure I understand the logistics...  Thanks