Getting RE License for Myself

[SD Realtor]

Nite Rus –

Section 29 of the RPA is what you are referring to.

Broker compensation from Buyer:

“If applicable upon COE Buyer agrees to pay compensation to broker as specified in a seperate written agreement between Buyer and Broker. ”

Generally this may apply to say a FSBO where the seller is not paying any commission to anybody.
So how does an agent who brings his buyer to the fsbo home and represents the buyer get compensated? Note that in the buyers representation agreement (which would be the “seperate written agreement that is referred to in the RPA above) there is a specific discussion about compensation to the broker representing the buy to be paid by the buyer in such where no compensation is offered from the other side. Thus that is how he/she gets compensated.

Again, (I hope) the point being is that only brokers get compensated. Nobody else ever gets compensated except brokers. Maybe I am getting closer to connecting? No? Don’t give up on me if we are still missing connections…

ps – A last ecample. Say you strike a deal with your realtor regarding a rebate. Assume the listing is offering a 3% CBB and your realtor agrees to rebate you 50% of the commission. He will get 1.5% and you get 1.5%. He will declare that 1.5% as income. You as the buyer will receive a 1.5% credit from the seller directly. You then use that 1.5% to pay off misc closing costs in escrow. Do you declare that 1.5% as income? No you don’t; however that 1.5% went to pay off misc closing costs. Can you adjust your cost basis by those misc closing costs that were paid off by the 1.5%? Most likely no because they were not paid by you. Declaring any of the money as income is (to me) moot because you cannot walk away from the transaction with any cash. Primarly because your lender will not allow that. Maybe back in the shadier days it did happen. I would assume that if you DID walk away with cash then perhaps yes that should be income.

Take the same example where you are not represented. You received no commission because you were not under the employ of a broker. You received a 3% credit for non recurring and recurring closing costs and possibly some repairs/upgrades. This credit was eaten up in escrow by all of the closing costs and repairs and somehow your lender was okay with it. Again, the same logic applies above with regards to adjusting your cost basis as above.

Disclaimer!!! I am not an accountant so I stand to be easily corrected by a tax professional, accountant, FSD, Surveyor, etc…

[NotCranky]

SDR,

There”s no reason even consider “giving up on you”.
We are just talking about too many things at once.

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.

***********

Something like the above used to be on the RPA. I can’t remember when exactly it changed…about 5 years ago? I believe there was a a time when it was considered redundant to the mls offer of commission and it didn’t matter. I always filled it in anyway.

Item 29 as you say, or item 32 of the RPA probably covers the FSBO and not very well if it does. I think it is 32 and 29 is for buyer’s brokers? It doesn’t really matter because without some other agreement, which we will of course have, there is no obligation of a commission.

Anyway, yep no commissions to non-licensees but the reduction in price or other benefit, that they should be able to negotiate to account for it, is just as good.

[NotCranky]

SDR,

There”s no reason even consider “giving up on you”.
We are just talking about too many things at once.

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.

***********

Something like the above used to be on the RPA. I can’t remember when exactly it changed…about 5 years ago? I believe there was a a time when it was considered redundant to the mls offer of commission and it didn’t matter. I always filled it in anyway.

Item 29 as you say, or item 32 of the RPA probably covers the FSBO and not very well if it does. I think it is 32 and 29 is for buyer’s brokers? It doesn’t really matter because without some other agreement, which we will of course have, there is no obligation of a commission.

Anyway, yep no commissions to non-licensees but the reduction in price or other benefit, that they should be able to negotiate to account for it, is just as good.

[NotCranky]

SDR,

There”s no reason even consider “giving up on you”.
We are just talking about too many things at once.

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.

***********

Something like the above used to be on the RPA. I can’t remember when exactly it changed…about 5 years ago? I believe there was a a time when it was considered redundant to the mls offer of commission and it didn’t matter. I always filled it in anyway.

Item 29 as you say, or item 32 of the RPA probably covers the FSBO and not very well if it does. I think it is 32 and 29 is for buyer’s brokers? It doesn’t really matter because without some other agreement, which we will of course have, there is no obligation of a commission.

Anyway, yep no commissions to non-licensees but the reduction in price or other benefit, that they should be able to negotiate to account for it, is just as good.

[NotCranky]

SDR,

There”s no reason even consider “giving up on you”.
We are just talking about too many things at once.

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.

***********

Something like the above used to be on the RPA. I can’t remember when exactly it changed…about 5 years ago? I believe there was a a time when it was considered redundant to the mls offer of commission and it didn’t matter. I always filled it in anyway.

Item 29 as you say, or item 32 of the RPA probably covers the FSBO and not very well if it does. I think it is 32 and 29 is for buyer’s brokers? It doesn’t really matter because without some other agreement, which we will of course have, there is no obligation of a commission.

Anyway, yep no commissions to non-licensees but the reduction in price or other benefit, that they should be able to negotiate to account for it, is just as good.

[NotCranky]

SDR,

There”s no reason even consider “giving up on you”.
We are just talking about too many things at once.

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.

***********

Something like the above used to be on the RPA. I can’t remember when exactly it changed…about 5 years ago? I believe there was a a time when it was considered redundant to the mls offer of commission and it didn’t matter. I always filled it in anyway.

Item 29 as you say, or item 32 of the RPA probably covers the FSBO and not very well if it does. I think it is 32 and 29 is for buyer’s brokers? It doesn’t really matter because without some other agreement, which we will of course have, there is no obligation of a commission.

Anyway, yep no commissions to non-licensees but the reduction in price or other benefit, that they should be able to negotiate to account for it, is just as good.

[XBoxBoy]

Rustico & SD Realtor,

I had no idea my questions would get so far into the nitty gritty of commissions. But wondering if we can follow up on the case where the person buying represents themselves and is not an agent, and does not work with a broker. Assume in this case that the buyer has found the property through websites, etc and is prepared to do a good bit of the leg work. (ie arrange for inspections, deal with escrow, etc)

How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller? Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture? Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?

If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?

As a second topic, if a buyer is making an offer without an agent, what’s the best place to get the necessary forms? In particular I’m thinking about the purchase contract, and disclosure forms. When I sold my house in 2004 I had to fill out pages of disclosures, and I’d like to be able to hand similar forms to the seller. I know some disclosures are required by law. I looked on the San Diego Association of Realtors site, but it looks like they won’t sell you forms unless you have a license.

Thanks for all your comments,

XBoxBoy

[XBoxBoy]

Rustico & SD Realtor,

I had no idea my questions would get so far into the nitty gritty of commissions. But wondering if we can follow up on the case where the person buying represents themselves and is not an agent, and does not work with a broker. Assume in this case that the buyer has found the property through websites, etc and is prepared to do a good bit of the leg work. (ie arrange for inspections, deal with escrow, etc)

How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller? Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture? Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?

If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?

As a second topic, if a buyer is making an offer without an agent, what’s the best place to get the necessary forms? In particular I’m thinking about the purchase contract, and disclosure forms. When I sold my house in 2004 I had to fill out pages of disclosures, and I’d like to be able to hand similar forms to the seller. I know some disclosures are required by law. I looked on the San Diego Association of Realtors site, but it looks like they won’t sell you forms unless you have a license.

Thanks for all your comments,

XBoxBoy

[XBoxBoy]

Rustico & SD Realtor,

I had no idea my questions would get so far into the nitty gritty of commissions. But wondering if we can follow up on the case where the person buying represents themselves and is not an agent, and does not work with a broker. Assume in this case that the buyer has found the property through websites, etc and is prepared to do a good bit of the leg work. (ie arrange for inspections, deal with escrow, etc)

How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller? Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture? Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?

If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?

As a second topic, if a buyer is making an offer without an agent, what’s the best place to get the necessary forms? In particular I’m thinking about the purchase contract, and disclosure forms. When I sold my house in 2004 I had to fill out pages of disclosures, and I’d like to be able to hand similar forms to the seller. I know some disclosures are required by law. I looked on the San Diego Association of Realtors site, but it looks like they won’t sell you forms unless you have a license.

Thanks for all your comments,

XBoxBoy

[XBoxBoy]

Rustico & SD Realtor,

I had no idea my questions would get so far into the nitty gritty of commissions. But wondering if we can follow up on the case where the person buying represents themselves and is not an agent, and does not work with a broker. Assume in this case that the buyer has found the property through websites, etc and is prepared to do a good bit of the leg work. (ie arrange for inspections, deal with escrow, etc)

How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller? Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture? Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?

If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?

As a second topic, if a buyer is making an offer without an agent, what’s the best place to get the necessary forms? In particular I’m thinking about the purchase contract, and disclosure forms. When I sold my house in 2004 I had to fill out pages of disclosures, and I’d like to be able to hand similar forms to the seller. I know some disclosures are required by law. I looked on the San Diego Association of Realtors site, but it looks like they won’t sell you forms unless you have a license.

Thanks for all your comments,

XBoxBoy

[XBoxBoy]

Rustico & SD Realtor,

I had no idea my questions would get so far into the nitty gritty of commissions. But wondering if we can follow up on the case where the person buying represents themselves and is not an agent, and does not work with a broker. Assume in this case that the buyer has found the property through websites, etc and is prepared to do a good bit of the leg work. (ie arrange for inspections, deal with escrow, etc)

How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller? Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture? Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?

If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?

As a second topic, if a buyer is making an offer without an agent, what’s the best place to get the necessary forms? In particular I’m thinking about the purchase contract, and disclosure forms. When I sold my house in 2004 I had to fill out pages of disclosures, and I’d like to be able to hand similar forms to the seller. I know some disclosures are required by law. I looked on the San Diego Association of Realtors site, but it looks like they won’t sell you forms unless you have a license.

Thanks for all your comments,

XBoxBoy

[SD Realtor]

“How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller?”

You lost me here. Why would the buyers commission be rebated back to the seller? There is no rebate because there is no commission paid.

Lets reset the case okay? Lets say you are a buyer and you are not represented. You wanna buy the home. Submit an offer, make it say 2.5%-3% below asking price. Simple as that isn’t it? You are representing yourself so there is no commission to discuss.

“Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture?”

The commission agreed upon by the seller and his listing agent is applicable to compensate other brokers only. If you are not a broker or an agent under the employ of a broker there is nothing that applies to you, an unrepresented buyer. Again, keep it simple and ask 2.5-3% below asking price. Commission cannot be mentioned in the contract

“Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?”

Okay part 1, every broker differs. Would a broker be wary of working with a buyer who is not represented? Yes. Why? Because that broker incurs additional liability. If you the buyer screw up the broker may be held liable because you were not a real estate professional and though your screw up is of no fault to the other broker, he/she may be still held liable for YOUR mistake. Again the reticence has nothing to do with anything else. Please please please try to understand this, as an unrepresented buyer you get no commission. The selller pays no commission to you. The seller ONLY pays the listing agent the commission for listing the home. It is not like the seller pays the listing agent the commission to list the home AND the commission for the cooperating broker, and then gets the coop commission rebated back.

Now as a side note. Many people think they save money by going to an open house and working directly with the listing agent. In some cases this may be true, in some cases maybe not. In cases like this the listing agent becomes a dual agent. He represents both the seller as a listing agent and he represents you the buyer. He will receive his full commission to list the home and he will also receive the coop commission as well. Now he may have an agreement in place with the seller that if he does both sides, the coop commission will be reduced somewhat. Then again, he may not have it reduced at all.

“If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?”

See explanation above. I don’t think this is an applicable question.

Cannot answer the questions about getting forms as I don’t have any idea.

[SD Realtor]

“How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller?”

You lost me here. Why would the buyers commission be rebated back to the seller? There is no rebate because there is no commission paid.

Lets reset the case okay? Lets say you are a buyer and you are not represented. You wanna buy the home. Submit an offer, make it say 2.5%-3% below asking price. Simple as that isn’t it? You are representing yourself so there is no commission to discuss.

“Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture?”

The commission agreed upon by the seller and his listing agent is applicable to compensate other brokers only. If you are not a broker or an agent under the employ of a broker there is nothing that applies to you, an unrepresented buyer. Again, keep it simple and ask 2.5-3% below asking price. Commission cannot be mentioned in the contract

“Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?”

Okay part 1, every broker differs. Would a broker be wary of working with a buyer who is not represented? Yes. Why? Because that broker incurs additional liability. If you the buyer screw up the broker may be held liable because you were not a real estate professional and though your screw up is of no fault to the other broker, he/she may be still held liable for YOUR mistake. Again the reticence has nothing to do with anything else. Please please please try to understand this, as an unrepresented buyer you get no commission. The selller pays no commission to you. The seller ONLY pays the listing agent the commission for listing the home. It is not like the seller pays the listing agent the commission to list the home AND the commission for the cooperating broker, and then gets the coop commission rebated back.

Now as a side note. Many people think they save money by going to an open house and working directly with the listing agent. In some cases this may be true, in some cases maybe not. In cases like this the listing agent becomes a dual agent. He represents both the seller as a listing agent and he represents you the buyer. He will receive his full commission to list the home and he will also receive the coop commission as well. Now he may have an agreement in place with the seller that if he does both sides, the coop commission will be reduced somewhat. Then again, he may not have it reduced at all.

“If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?”

See explanation above. I don’t think this is an applicable question.

Cannot answer the questions about getting forms as I don’t have any idea.

[SD Realtor]

“How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller?”

You lost me here. Why would the buyers commission be rebated back to the seller? There is no rebate because there is no commission paid.

Lets reset the case okay? Lets say you are a buyer and you are not represented. You wanna buy the home. Submit an offer, make it say 2.5%-3% below asking price. Simple as that isn’t it? You are representing yourself so there is no commission to discuss.

“Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture?”

The commission agreed upon by the seller and his listing agent is applicable to compensate other brokers only. If you are not a broker or an agent under the employ of a broker there is nothing that applies to you, an unrepresented buyer. Again, keep it simple and ask 2.5-3% below asking price. Commission cannot be mentioned in the contract

“Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?”

Okay part 1, every broker differs. Would a broker be wary of working with a buyer who is not represented? Yes. Why? Because that broker incurs additional liability. If you the buyer screw up the broker may be held liable because you were not a real estate professional and though your screw up is of no fault to the other broker, he/she may be still held liable for YOUR mistake. Again the reticence has nothing to do with anything else. Please please please try to understand this, as an unrepresented buyer you get no commission. The selller pays no commission to you. The seller ONLY pays the listing agent the commission for listing the home. It is not like the seller pays the listing agent the commission to list the home AND the commission for the cooperating broker, and then gets the coop commission rebated back.

Now as a side note. Many people think they save money by going to an open house and working directly with the listing agent. In some cases this may be true, in some cases maybe not. In cases like this the listing agent becomes a dual agent. He represents both the seller as a listing agent and he represents you the buyer. He will receive his full commission to list the home and he will also receive the coop commission as well. Now he may have an agreement in place with the seller that if he does both sides, the coop commission will be reduced somewhat. Then again, he may not have it reduced at all.

“If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?”

See explanation above. I don’t think this is an applicable question.

Cannot answer the questions about getting forms as I don’t have any idea.

[SD Realtor]

“How open do you think most agents will be with an offer that rebates the buyer’s commission back to the seller?”

You lost me here. Why would the buyers commission be rebated back to the seller? There is no rebate because there is no commission paid.

Lets reset the case okay? Lets say you are a buyer and you are not represented. You wanna buy the home. Submit an offer, make it say 2.5%-3% below asking price. Simple as that isn’t it? You are representing yourself so there is no commission to discuss.

“Can the offer specify that since the commission is agreed upon by the seller and their agent before the buyer ever enters the picture?”

The commission agreed upon by the seller and his listing agent is applicable to compensate other brokers only. If you are not a broker or an agent under the employ of a broker there is nothing that applies to you, an unrepresented buyer. Again, keep it simple and ask 2.5-3% below asking price. Commission cannot be mentioned in the contract

“Would the seller’s agent be likely to discourage the seller from taking such an offer, since a buyer without an agent is likely to be seen as a negative by the seller’s agent, and if you’re rebating the commission to the seller, what’s in it for the agent?”

Okay part 1, every broker differs. Would a broker be wary of working with a buyer who is not represented? Yes. Why? Because that broker incurs additional liability. If you the buyer screw up the broker may be held liable because you were not a real estate professional and though your screw up is of no fault to the other broker, he/she may be still held liable for YOUR mistake. Again the reticence has nothing to do with anything else. Please please please try to understand this, as an unrepresented buyer you get no commission. The selller pays no commission to you. The seller ONLY pays the listing agent the commission for listing the home. It is not like the seller pays the listing agent the commission to list the home AND the commission for the cooperating broker, and then gets the coop commission rebated back.

Now as a side note. Many people think they save money by going to an open house and working directly with the listing agent. In some cases this may be true, in some cases maybe not. In cases like this the listing agent becomes a dual agent. He represents both the seller as a listing agent and he represents you the buyer. He will receive his full commission to list the home and he will also receive the coop commission as well. Now he may have an agreement in place with the seller that if he does both sides, the coop commission will be reduced somewhat. Then again, he may not have it reduced at all.

“If the seller’s agent is not receptive to rebating the buyers commission back to the seller, isn’t the buyer then better off going with someone like redfin that will at least rebate some of the commission to the buyer?”

See explanation above. I don’t think this is an applicable question.

Cannot answer the questions about getting forms as I don’t have any idea.

[Author]

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