Could I owe a commission if my transaction doesn’t close? Yes! The Minnesota Association of Realtor listing contract states that you owe a commission if your broker procures a ready, willing and able buyer. You can change this term (and many others) or use a different form.
Who typically determines the buyer broker’s compensation? It is typically fixed by the listing broker. It is rarely negotiated by either party to the transaction. Buyers who negotiate this fee can save thousands of dollars.
Who should negotiate the buyer broker’s compensation? The buyer. However, brokers go to great lengths to conceal how much is being offered to buyer brokers and misinform buyers that they work for “free.”
Should consumers sign the realtor arbitration agreement? No! The realtor arbitration form requires you to use the arbitration firm under contract with the realtors. That could translate into decisions that favor realtors, not you.
Should I agree to dual agency? No. Dual agency is illegal for every other profession and it creates an insurmountable conflict of interest. Realtors have the added conflict of having a financial incentive of a double fee to steer you into transactions that involve dual agency. Worse, it creates an incentive for agents to discourage cooperating brokers from showing or selling your house. You unnecessarily give up a lot when you agree to dual agency including your agent’s negotiation expertise. Few realtors understand dual agency and they continue to misinform consumers about it. Many realtors who claim not to practice dual agency actually do. Many realtors who help you negotiate in a dual agency situation, could be subjecting you to a voidable transaction. You can avoid dual agency by finding a highly qualified agent in a small firm.
“Coming Soon,” “pre-listings” “test marketing” and “pre-marketing” listings are sold to Minneapolis-St. Paul area real estate consumers as a special service. In fact, Minnesota realtors who do this are intentionally limiting your market exposure in hopes of “hogging” the commission and likely breaching their fiduciary duties to you by recommending this path which they should know is self-serving for them and bad for you.
Should I use the broker’s title company? No. A title company investigates and examines title and makes important closing decisions. No one sitting at the closing table should be related to the title company, especially a real estate broker with a large commission riding upon the transaction closing.