Commission

The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction.

Commissions for a sales person, a real estate broker, a real estate agent is the life blood of the income that is earned when a buyer willing, ready and able. Commission is negotiable between the parties of the sale and is more or less meant to be a private transaction during the negotiation between those parties. This means that a real estate broker or their agent negotiate making the mission structure with the seller. And the real estate broker can negotiate a cooperating agreement with other real estate brokers For payment of part of that commission. Or a buyers broker can negotiate with a buyer for a commission structure and that can remain between those parties. However, in the transaction, most state laws state that all parties must be aware of who is getting paid and what and normally that comes in the purchase and sale agreement And noted on the closing disclosure.

Now this is where it becomes early in a public setting or when others, do you remember when we were talking about collusion and a previous video, and those individuals set a commission among various people or various groups as a standard or fixed commission and this is called price fixing. This is illegal as the fire department of justice. Is a violation of the Sherman and Trust act, the Clayton act, the National Association realtors code of ethics. Paragraph it is OK for people to earn a commission. It is not OK for anyone to against the seller, or the buyer or real estate professionals one against the other to set any type of price to be fixed at a certain or standard level, whether it be a price where a buyer will buy, or a seller will sell or any commission at any part of the transaction.

Once again, I will reiterate, it is illegal for a group of individuals, more specificallytwo or more real estate companies that have no association within a singular company status cannot form any type of meeting or any other circumstance to attempt to control, in the delay, regulate, or fix any type of price structure, or commission.

However, it is legal for a broker to stipulate within that brokerage company guidelines, and provide to negotiations between the broker and the seller or the broker and the buyer. It is legal for two brokers to agree on a compensation structure as allowed or under the direction of the seller and or the buyer

The emphasis place no multiple companies multiple individuals in anyway attempt to fix a price or fix a commission in any manner that are direct, or indirect competitors with different business procedures