Rus it is fun to go over. Logically I believe we are saying the same thing.
To get anal and technical on you, here is the jargon of the Residential Listing Agreement regarding coop commissions:
Page 1 section 4D
“Seller has been advised of Broker’s policy regarding cooperation with, and the amount of compensation offered to other brokers.
(1) Broker is authorized to cooperate with and compensate brokers participating through the multiple listing service(s) by offering MLS brokers either ________(you put in the number here) percent of the purchase price or $________.
(2) Broker is authorized to cooperate with and compensate brokers operating outside the MLS as per Brokers policy.
***********
Notice there is NO reference to paying any compensation to anyone who is not a broker. This is because technically it is not legal.
Now if you go to the DRE website and anyone here can, if you refer to reform 540, page 5 it has the definition of a Broker. Also it goes on to discuss what is called Unlawful Employment or Payment of Compensation. This section is VERY specific about who may receive compensation and who may not. Technically speaking again, it is not legal for someone to receive “compensation” if they are not licensed and under the employ of a broker. It is plain and simple. Here is the link
So again, not represented, there is no commission because commission is compensation. As you said, build it into the price for the lowest lifetime overhead or ask for credit back to cover non recurring and recurring closing costs.
