Brokerage Fee Explained
Questions or Concerns: Free phone consultation. Cell or TEXT 801-372-1658.
Lynn Fillmore, Principal Broker. Licensed Since 1992' Always Available
Brokerage Fee / Realtor Incentives to MLS Member Agents
2. BROKERAGE COMPENSATION. BROKERAGE FEE / Agent Incentives. A Buyer Agent Commission (the “BAC”) is NOT required to list Sellers property, Real Estate Commissions are negotiable and are not established by law.
2.1 Buyer Brokerage Fee. The Buyer Brokerage Fee also known as the Buyer Agent Commission or (the “BAC”) is no longer posted over the MLS system. Per the NAR lawsuit, compensation to Buyer Brokerage will not be displayed over the MLS System. The Buyer Brokerage Commission if any will be requested by Buyer, from Seller and will be noted in the Utah Real Estate Purchase Contract (the “REPC”) in Section 4.3(e). The request for Buyer Agent Compensation is a negotiable item as are all other items in the REPC from Buyer to Seller.
2.2 MLS Compliance Fee. On all sales, there shall be an “MLS Compliance Fee”. This MLS Compliance fee is .0025 or ¼% of the Net Sale Price of the Property. This fee shall be collected from Seller at closing and due to the Company, to cover costs associated with coordinating the transaction and employing and enforcing policies and procedures required to stay compliant with State Laws and local board Rules. If buyer comes direct to seller with no agent, the MLS Compliance Fee is still due at closing.
2.3 The Buyer may choose to remain UNREPRESENTED by signing an Unrepresented Buyer Disclosure or Buyer may be REPRESENTED by the Listing Brokerage by Signing a Buyer Broker Agreement with a Limited Agency Disclosure Agreement. The Seller is not considered a “For Sale By Owner” but is at all times represented by the Company and the Seller’s Agent. The request for Buyer Agent Compensation is a negotiable item as are all other items in the REPC from Buyer to Seller.
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Licensed Brokers and Agents who represent a Buyer are directed by the Utah Division of Real Estate to have a signed "Buyer Broker Agreement" with their Buyer Client, noting a specific amount of incentive that the Buyer Brokerage charges for Buyer Agent Services. In-House sales (see: Limited Agency) are legal and authorized in the State of Utah. We offer Limited Agency Representation to In-House Buyers for 1% as a savings to Buyer and Seller on the cost of sale.
The Utah Real Estate Purchase Contract (the "REPC") notes in Section 5: CONFIRMATION OF AGENCY DISCLOSURE. Buyer and Seller acknowledge prior written receipt of agency disclosure provided by their respective agent that has disclosed the agency relationships confirmed below. At the signing of the REPC.
With all inquiries. We need to identify if the buyer already has an Agent. The Buyer Agent should then be present at showings. If Buyer indicates that they do not have a Buyer Agent we inform the Buyer of the advantage of our "in-house sale" service, with a reduction in fees involved in any upcoming transaction. The lower cost of sale betters their offer. As Seller, You are not required to participate in a our In-House Sale Service
Note: Buyers or Buyer Agents may be difficult to deal with or may not want to deal directly with the Seller. Our Full Service and Traditional Service, put us on the front line. The additional cost for this added Broker involvement in the selling process goes a long way. We negotiate contracts every day. Experience is our best value. Our Goal is to avoid problems, wasted time and transactions that do not close.
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8/17/2024 Based on Legal action against Real Estate Brokerages in the Midwest, including the National Association of Realtors, a settlement has been made with the Department of Justice, which has caused changes to be made to the Realtor incentive structure. The Buyer Broker Commission incentives, if any, contracted with Seller and offered by the Listing Brokerage to Buyer Brokerages are no longer viewable on MLS Systems. MLS Contracts, Addendums, Forms and Agreements have been updated by the Utah Association of Realtors. Buyer Brokerages will inquire of Listing Brokerages, if incentives are being offered, by the Listing Brokerage. Sellers may see requests by Buyers, in the Purchase Agreement, for their Buyer Agent's Compensation to be part of the transaction.
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SEE UTAH REAL ESTATE PURCHASE CONTRACT EFFECTIVE DECEMBER 4, 2024
4. PRORATIONS / ASSESSMENTS / OTHER PAYMENT OBLIGATIONS
4.3 Fees/Costs/Payment Obligations.
(e) Real Estate Brokerage Compensation. Seller and Buyer agree that Seller shall contribute ____ % of the Purchase Price to Buyer's Brokerage or $ ______
to Buyer's Brokerage, if applicable ("Seller's Compensation Contribution"). If no amount is entered, then Seller has not agreed to compensate Buyer's Brokerage in the REPC. This payment shall be made in addition to any other compensation agreed to by the Seller's Brokerage to Buyer's Brokerage, if applicable. Buyer agrees that Seller's Compensation Contribution, combined with any other payment from Seller's Brokerage, if applicable, to Buyer's Brokerage, shall not exceed the amount agreed to between Buyer and Buyer's Brokerage in their written buyer-broker agreement. The provisions of this Section 4.3(e) shall survive Closing.
We are always here, Lean on us.
The MLS Rules prohibit using the MLS, including any of the remarks fields, to market or advertise offers of compensation or commissions to other brokerages, agents, or buyers. This includes, but is not limited to, offers to pay Buyer Brokerage Compensation (BBC), Buyer Agency Compensation (BAC), or any other offers of compensation.
