In a situation where there are many counter-offers, what the parties agree on can become confusing. The seller-multiple counter offer form (SMCO) has been amended where the seller must now sign the contract a second time in paragraph 8 and return it to the buyer for binding. On the first counter-offer, the contract becomes mandatory as soon as the buyer sends it back to the seller. However, after multi-step offers, this additional step is now needed to reach an effective agreement. If the buyer signs in paragraph 7, subject to the attached counter-offer, and the seller agrees, the seller must re-sign the counter-offer to have an effective agreement. [Back to the top] Two new sections have been added to the Standard Housing Rating Agreement (RLA). The first change is the addition of a language indicating that the seller agrees to provide the broker with a copy of the list agreement to the Multiple List Service (MLS) if the MLS requires it. In addition, a new language has been added regarding the seller`s intention to include a contingency in the purchase of a replacement property as part of a resulting transaction. [Back to the top] It should be noted that, in the language of Section 18 A, it is expressly stated that compensation must be paid on the basis of a separate written agreement. If there is no separate written agreement, neither broker is automatically entitled to compensation. Why, you might ask me, I`m specifically referring to C.A.R. Forms? In California, the following language must be included in the agreement in order to create an enforceable compensation agreement between principal and broker (in bold characters – 10-point policy). Note: Whether the separate written agreement is a listing agreement or any of the other agreements mentioned above, it is certain that the expiry date of the agreement and the date of acceptance of the offer coincide.
In this week`s mentor mondays, Jeff Petsche details the one-party compensation agreement, an agreement with a seller to compensate the agent if a particular buyer ends up buying the property. In addition to the benefits and pitfalls of this type of agreement, Jeff also discussed how to use the idea to start a conversation with a potential seller, and how to use it in conjunction with outdated lists (an approach that could also work for FSBOs). The best is that, since this agreement is specific to a single buyer and seller, if an agreement results, the process is much simpler than you would have approached the owner with a listing proposal of the property. To avoid disputes over the issue of brokerage compensation, it is wise to guarantee the right agreements. These agreements may include: a step backwards to the RPA and point 20; Please see below a frequent follow-up question on broker compensation: TIP – The commission rate for a list of a party is usually lower than the full interest rate that would be due if Sir.