Acting as agent and Principal

12 Replies

Hello all,

I am purchasing a property as the Principal, in my name. I am also acting as the buyer agent. 

Per Wisconsin code REEB 24.05  - It states... 

A licensee acting as an agent in a real estate or business opportunity transaction may not accept any fee or compensation related to the transaction from any person, other than the licensee's client, principal firm, or firm the licensee is associated with without prior written consent from all parties to the transaction

I take full responsibility of not knowing this law. It was incompetence. But I'm here now and I have to deal with it.

 Im reaching out to this community for advice in regards to this situation. In our budgeting, we are absolutely (now more than ever) counting on receiving the stated commission. Unfortunately we don't have anything in the contract regarding paying out commission to the buyers side. 

Who here has dealt with this? Or perhaps found a way around it? Or can think of one?

Help me out!

edit: I have reached out to my attorney already. Im asking for different perspectives.

Personally if it was me DISCLAIMER: Not licensed in your state, just rambling:::

I would reach out to the other agent and ask for an addenda (better yet have one created and ready to go) that states "All parties acknowledge that buyer is a licensed real estate agent". I know if someone reached out to me I would just write it up like another addenda. If they start having issues with it, then I would offer to back out and apologize (They won't choose this option). 

Some agents relish at the opportunity to report or start ethics issues. Most in my experience don't and will most likely know you are just writing up an addenda and have it signed. NOW..... If you said things like "My client won't go for that" or "My client likes it but..." and tried to deceive them in some way it may be different. If you were above board from the beginning (or at least not faking you had a client) teh best course is to come clean with the listing agent and get something on paper.

Just my 2 cents

I don't understand how the quoted text is creating a problem for the scenario that you're describing. Were you trying to do this deal without going through your brokerage? If so, I see why you're having an issue. If not, then just ask your broker what you need to do. In every state that I've worked, getting paid a commission on your personal transactions was allowed, it just needed to flow through the broker. I've never worked in WI though, so I don't know for sure.

Originally posted by@Mike Cumbie :

Personally if it was me DISCLAIMER: Not licensed in your state, just rambling:::

I would reach out to the other agent and ask for an addenda (better yet have one created and ready to go) that states "All parties acknowledge that buyer is a licensed real estate agent". I know if someone reached out to me I would just write it up like another addenda. If they start having issues with it, then I would offer to back out and apologize (They won't choose this option). 

Some agents relish at the opportunity to report or start ethics issues. Most in my experience don't and will most likely know you are just writing up an addenda and have it signed. NOW..... If you said things like "My client won't go for that" or "My client likes it but..." and tried to deceive them in some way it may be different. If you were above board from the beginning (or at least not faking you had a client) teh best course is to come clean with the listing agent and get something on paper.

Just my 2 cents

In the offer to purchase we have it spelled out that the buyers (my wife and I) are licensed Wisconsin real estate agents. It is also spelled out (need to confirm) that this offer was drafter up by "Me - Brokerage name"

Ive spoken to the agent and he is refusing to work with me. Knows there is no legal way out of this deal and the closing is very soon. I don't believe he is one to seek out these opportunities I just think he knows the ball is in his court.  

Im just confused...i'm doing all the work of an agent of my brokerage and i happen to be a buyer. Why wont my brokerage get paid in this transaction??

Originally posted by @Joseph Cacciapaglia :

I don't understand how the quoted text is creating a problem for the scenario that you're describing. Were you trying to do this deal without going through your brokerage? If so, I see why you're having an issue. If not, then just ask your broker what you need to do. In every state that I've worked, getting paid a commission on your personal transactions was allowed, it just needed to flow through the broker. I've never worked in WI though, so I don't know for sure.

We are not trying to avoid our brokerage. We've been under the assumption we do this deal like every other. Our brokerage represents our buyers and we happen to be the buyers, representing ourselves. Im meeting with our attorney tomorrow morning. But this is just crazy to me as Ive been expecting a $13,000 commission check. 

Hopefully good news comes tomorrow.

 

From what I have read. I don't see where they can't (or are not obligated to) pay your brokerage based on your original post. The seller is not paying you (they never do) they pay their brokerage, then their brokerage pays yours. Who in return pays you. 

Your brokerage still gets paid whatever is listed as the cooperting fee in the MLS. If the listing agent refuses to pay it, allow the 2 brokers to work it out.

This is assuming it is not an REO or Short Sale, where commission is often not paid to the buyers agent on their own deals.

Originally posted by @Russell Brazil :

Your brokerage still gets paid whatever is listed as the cooperting fee in the MLS. If the listing agent refuses to pay it, allow the 2 brokers to work it out.

This is assuming it is not an REO or Short Sale, where commission is often not paid to the buyers agent on their own deals.

 Im trying to understand this myself. Im trying to see it from his angle. Could he be under the impression that I am not going through my brokerage? What other scenarios could he justify for this?