If I represent the seller, can I advertise that I will rebate part of my commission to the buyer?
A: Yes, but the ad must disclose that payment of the rebate is subject to the consent of the seller and if the rebate is contingent upon certain restrictions, such as the use of a particular service provider, the ad must contain a disclosure that payment of the rebate is subject to restrictions. [Rule 535.154(m)] A sales agent must also have their sponsoring broker's authorization to offer a rebate.
However, a rebate to a buyer from a license holder may be subject to restrictions by the buyer’s lender. You should contact your broker or private attorney to find out how you should notify and obtain the consent of the buyer’s lender to address any impact the rebate may have on the determination regarding the buyer’s creditworthiness.
Stay Compliant and Always Disclose, Disclose, Disclose!
TIPS FOR REQUESTING SPONSORSHIP
A broker, who is also the designated officer of a Business Entity, will have two license numbers; the individual broker’s license and the business entity broker’s license. Sales Agent’s requesting the sponsorship through the Relationship Management Tool (RMT) should verify the correct license number for their sponsoring broker PRIOR to submitting the online request. Once the fee is paid, the fee is non-refundable or transferrable. Once the request and payment are submitted, an email will be sent to the broker. The sponsorship will be in effect when the broker accepts the sponsorship request.
At TexasBrokerSponsor.com we strive to be your broker sponsorship solution. We welcome experienced agents and newly licensed agents to become part of our growing Texas-wide agent team. If you looking to earn more on every sales or leasing transaction we can help make that happen Make 2017 the year you make the move to increase your income.
When am I required to provide a broker price opinion or comparative market analysis on a property?
TREC Rule 535.16(c) provides two instances in which a real estate licensee is required to provide a broker price opinion (BPO) or comparative market analysis (CMA) on a property. The first instance is when a licensee negotiates a listing. For example, if a listing broker is negotiating the terms of a listing agreement with a seller, the listing broker must provide the seller with a BPO or CMA. Note: The rule does not provide for a specific time for a BPO or CMA to be given to the seller. However, the appropriate time would be when discussing the sales price.
The second instance in which a BPO or CMA is required is when a licensee is offering to purchase a property on his own behalf as a result of contact made while acting as a real estate agent. For example, a licensee represented a buyer and showed that buyer a specific property. After the buyer was no longer interested in the property, the licensee decided to submit an offer on that same property to purchase for himself. Since the licensee is submitting an offer on the property on his own behalf as a result of contact made while he was acting as a buyer’s agent, the licensee would now need to provide the seller with a BPO or CMA. reference source: TexasRealtors.com
TEXT AND EMAIL NEGOTIATIONS
Under TREC’s rules (§535.2), brokers and salespersons need to maintain business records including transaction files. These records must be kept in a retrievable format, whether paper or electronic. Communications between clients or customers may be considered to be part of negotiations and may be important records in a transaction. Therefore, brokers and salespersons should develop protocols for how these communications are retained as part of the business record.
Additionally, brokers and salespersons need to exercise care to avoid any statements in these communications that may be later construed as “misrepresentations” of any type, including but not limited to misrepresentations about the intentions of the client(s) with respect to making or accepting offers.
The agent’s statements in an email need to avoid giving the impression that a “deal is done” or that “a party accepts” an offer or counteroffer unless that is clearly the intention of the client and is supported with documentation such as the proper signatures or initials on the written contracts.
With few exceptions, agents do not have the authority to bind their clients, but they communicate for their clients regarding negotiations. That difference needs to be clearly understood by all those involved in the negotiations.
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