Have you ever bought or sold your home or other real estate? If so, you may be interested in knowing that a recent federal lawsuit has changed the way consumers will now negotiate and pay commissions to their real estate agents. Our team at our title company, Central States Land Title Agency Inc., has reviewed this new real estate agent sales commission decision and is here to explain and answer any questions you may have.
What Changed for Real Estate Commissions?
As a result of this federal lawsuit, a buyer must now enter into a “Buyer’s Agency Agreement” with their chosen real estate company/real estate agent before that agent can take them to see any homes. The “Buyer’s Agency Agreement” will state how much percentage/money/fees the buyer will pay their company/agent. The buyer’s agent commission can be paid a number of ways:
- by the buyer at closing,
- the seller can pay the buyer’s commission, or a portion of the buyer’s commission, out of the net proceeds as a concession,
- the listing company/agent can “share” a portion of the commission they are charging the seller, or
- a combination of the above.
Some listing companies/agents representing the seller will choose to charge their normal commission and “share” a portion of it. Other listing companies will charge a deeply discounted percentage which means they will not share any of their commission with the buyer’s company/agent thus forcing the buyer to have to negotiate with the seller as to how much the seller will pay to the buyer’s company/agent in concessions for the commissions.
What Does This Mean for Me When I Sell My Property?
If you are planning on selling your property and listing the property for sale with a realtor, please make certain to ask the listing agent you interview if they charge a fixed commission which will be “shared” in some fashion with the buyer’s company/agent, or if they are going to discount the commission you will be paying. If your realtor does not plan to share the commission in some fashion with the buyer’s company/agent, you should be prepared and aware that you will probably be asked by the buyer to help pay the buyer’s commission expenses.
How Can Central States Land Title Company Help Me?
Central States handles many types of commercial and residential real estate transactions for our clients, including:
- Residential sales and refinances;
- Commercial Transactions including commercial office space, hotels, restaurants, car washes, distilleries, warehouses, logistics facilities, manufacturing properties, industrial properties, and other business properties;
- Commercial Lease transactions;
- Purchases and acquisitions of real estate and business/assets for several of our corporate clients;
- Construction Loans;
- Transfer and Sale of Mineral Rights;
- Sales and Purchases of Non-Profit Organizations and church buildings;
- Sales and Purchases resulting from probate estates;
- Commercial and Residential Zoning.
Central States is run by Attorney James G. Mannos and Paralegal and Title Agent Carla Johnson. Collectively, they have over nine decades of experience in the legal field and real estate transactions. Our team prides itself on proactively accommodating your closing, making it as seamless and stress-free as possible. In addition, Carla is certified as a remote, online notary which gives us the ability to handle remote closings when necessary.
If Central States Land Title Agency, Inc. is able to assist you, please do not hesitate to reach out.
About the Authors
James Mannos focuses on real estate transactions, estate and probate matters, family law, and Claimant-side workers’ compensation matters. Carla Johnson has worked as a legal administrative assistant/lead transaction paralegal/real estate settlement agent primarily focusing on helping clients with real estate matters, estate planning, and workers’ compensation.
Share This Story, Choose Your Platform!
