Dual agency AND finders fee

3 Replies

Hello BP,

I am looking at a 6 unit in Chicago listed for 360k and am using sellers listing agent to represent me as a dual agent and she said that seller cut back her commission and wants me to pay a $2000 finders fee.

I am confused because doesn't she get both sides of deal?

Is it even legal to be both a dual agent and getting a finders fee?

I checked MLS listing sheet and it says that the co-op comp is flat $7500 of (Net SP)

When I questioned her about co-op fee she said standard co-op is 3% or 6% dual agency.

She went on to explain her brokerage will get 10k and she gets a portion of that 10k.

Any feedback on legality and whether she is trying to pad her compensation.

The reason I am considering paying 2k is that property is fully occupied with 1.94 dcr and 18% coc and an 11 cap and has just fallen out of contract and she hasn't place the listing back on MLS so I won't have competition.

Thanks in advance!

never heard of that it's  not her listing but the broker and all offers are to presented to the seller !!!!!!

Just by paying a finders fee does not even guarantee the sale would go thru This is wrong on so many levels 

Originally posted by @Ashley Pimsner :

Hello BP,

I am looking at a 6 unit in Chicago listed for 360k and am using sellers listing agent to represent me as a dual agent and she said that seller cut back her commission and wants me to pay a $2000 finders fee.

I am confused because doesn't she get both sides of deal?

Is it even legal to be both a dual agent and getting a finders fee?

I checked MLS listing sheet and it says that the co-op comp is flat $7500 of (Net SP)

When I questioned her about co-op fee she said standard co-op is 3% or 6% dual agency.

She went on to explain her brokerage will get 10k and she gets a portion of that 10k.

Any feedback on legality and whether she is trying to pad her compensation.

The reason I am considering paying 2k is that property is fully occupied with 1.94 dcr and 18% coc and an 11 cap and has just fallen out of contract and she hasn't place the listing back on MLS so I won't have competition.

Thanks in advance!

 The listing agreement clearly states the commission paid to her as the listing agent, and as the buyer's agent.  The seller may try and negotiate the commission if she is a dull agent, but she does not have to.

Brie Schmidt, Real Estate Agent in Illinois (#471.018287) and Wisconsin (#57846-90)

@Ashley Pimsner , sounds to me like she's getting greedy.  "If I were a betting man," I'd suspect that as soon as you refuse to pay the "finders fee," she'd figure out a way to get the deal signed.  Considering that she's a dual agent, the old phrase "a bird in the hand is worth two in the bush" applies here: if you pass, the likelihood that she'll be a dual on the second buyer is much lower...and she should realize that.  Her commission should already be fixed via the listing agreement, so I think she's just "trying to squeeze blood from a turnip."

Chris Titcomb, Attorney
312-480-0360

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