I thought I read something about this before, but a search didn't bring it up.
On St. Patrick's Day, I learned I got my license as an independent real estate broker in NY. It took 5 days because I am a lawyer. I am now looking at properties in NY for a new primary home -- looking only at 4 plexes right now, and living in one unit. I have not taken the time of any real estate agents, so I am not leaving anyone unpaid. I have only sent brief emails to listing agents. My question is when do I bring up the subject of a co-broker agreement? I have narrowed my current choices to two properties about 35 minutes apart. Should I include requiring a co-broker agreement before I submit an offer, when I submit it, or what? My gut says sooner, in case there is an issue I will just skip that property. For example, I want to see the properties, and I wonder how to manage that.
I'm not sure about NY but in MA you need to disclose that you are licensed. Your best option is to ask upfront what the co-broke is on the deal you are considering and notify the listing agent that you will be representing yourself in the transaction. You may also consider waiving the co-broke fee and reducing your offer accordingly. Do you have access to a local MLS? That should state what the co-broke is for any properties listed in your area.
Like Rob said I would assume that the co-broke would be listed on the MLS and that is what you would get. Buyers represent themselves and collect commissions on there own purchases and sales all the time. Unless you are looking at buying an REO there won't be any issue with that (REOs do sometimes say a principal can't get a commission, though that might only be for investors).
Are you asking these listing agents to do anything for you like they would a client? If not then you are just the other agent, it is you just happen to be your own client.
Now if you got in touch with them like off of Zillow or Trulia or something as opposed to the MLS listing I would make sure to clarify that just so they don't have visions of double ending a commission just to find out when you put in the offer you have a license.
Thanks. Both listing people are aware I got my license because it happened the same week I was dealing with them. I will be upfront about it, I guess, and ask how they want me to go about seeing the property, by myself with the codes and keys, or come along.
Check you state/local requirements. Simply passing the test doesn't "activate" your license. As a broker you'll have regulatory requirements. Also, if you're not a member of the local MLS, at least here, no commission is owed to you in most cases. The MLS co broker commission shown is for MLS members. So, you may need a co broker agreement.
Wayne, the license is all I need. Yes, there are dos and don'ts with the license itself.
I have not been using the MLS. I use google. I'll see how it goes and put it out there.
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