Contract Forms Information and Suggestions ©2024 National Realty
LISTINGS – How to Use the Forms in Remine Docs+ under “Packages”- National Realty
NOTE: Compensation offered to a Buyer Broker is no longer allowed in the MLS.
You may not state words such as compensation, commission or similar in the MLS.
LISTING AGREEMENT – Suggestions on compensation fields
6A. Listing broker compensation: We suggest 3%. But this is negotiable with Seller.
What Seller offers to buyer compensation must now be included in a “Listing Agreement Amendment”.
6B. Additional Compensation if Buyer is Unrepresented: We suggest 2.5%
If you bring the buyer, this says that we would be paid the same as we would have paid a buyer agent.
6D. Broker Service Fee: This is $495 the administrative fee. Remove it if agent is to pay.
7B. Disclosure (buyer broker fee): Seller authorizes that listing agent may state Seller is willing to negotiate any amount Seller will pay toward Buyer Broker compensation. Recommended to authorize.
LISTING AGREEMENT “AMENDMENT”- Optional Buyer Broker Compensation (Recommended)
This should be signed at the same time as the Listing Agreement.
Why is this form optional? The listing agreement allows you to say the amount is negotiable.
What if we don’t use it? If a buyer agent asks Seller’s offer, we would just say “no authorized amount”.
Why use this form? It allows us to tell Seller the specific amount Seller has agreed to pay.
Buyers can still submit any amount in the Contract offer, but it helps to suggest an authorized amount.
1. Amount Seller is willing to pay toward Buyer Broker’s compensation.
We suggest offering 2% or 2.5%. This is a fair amount to encourage offers.
What is the advantage of a higher offer to pay Buyer Broker compensation?
In the past, most buyers didn’t have to pay a commission. It was in the MLS and Seller, not Buyer, paid it.
Many buyers now have a 2%, 2.5% or 3% commission to pay in their buyer broker agreement.
Buyers may not have the cash to pay a broker fee in cash in addition to down payment and closing costs.
So a reasonable amount offered may attract more buyers. The amount is still negotiable in the contract.
2. Listing agent is authorized to disclose this amount.
Check this box. It allows listing agent to state the amount offered (outside of the MLS of course).
What if the Buyer’s Contract offer states a different amount or one Seller is not willing to pay?
The Seller can counteroffer the buyer broker contribution just like Seller can counteroffer price.
How do I let buyer agents know what Seller has authorized toward Buyer Broker compensation?
By email, phone, text, etc. You may advertise it– open house, social media, advertising.
You may not state any broker compensation in the MLS listing, MLS remarks or MLS documents.
CONTRACT OFFER BY BUYER
What if the Contract offer asks for a subsidy payable by Seller to cover closing costs?
This is another negotiable amount just like price and what seller pays toward buyer broker fee.
A subsidy decreases the net price, but allows the Buyer to have money toward closing costs.
Can the Seller just offer a Subsidy and let the Buyer use it for closing costs or buyer broker fee?
Technically yes. But a subsidy subjects Buyer to lender limits. Buyer broker fee does not if listed in 6E.
OTHER FORMS FOR LISTINGS
MLS DISCLOSURES AND RESIDENTIAL SELLER OPTIONS (a new required form by Bright)
Have Seller initial- 2A for home going Active or 2C for Coming Soon. Both allow listing on Internet.
Add date to be listed in the MLS. It now must be within 2 days of the listing agreement date.
PROPERTY DISCLOSURE- Required. Seller to sign. Include it in the “Documents” when entering listing.
Also. If accepting a contract offer, include the Property Disclosure with the signed contract.
INFORMATION FOR MAKING AN OFFER (Optional)- Add this form in “Documents” when entering listing.
You will need to fill the form out with info on Seller, the home and certain preferences.
This will help buyer agents fill out a contract offer
DISCLOSURE OF BROKERAGE RELATIONSHIP FOR UNREPRESENTED PARTIES
Use only if you have a buyer with no buyer agent. You may assist that person to fill out a contract.
You can provide facts and disclosure, but you cannot provide advice since the Seller is your client.
MORE FORMS?
Our packages for listings has a 2nd group of more forms commonly used. (e.g. lead paint, etc.)
If you need even more forms, you will need to use the Forms tab instead of packages.
Under forms, select NVAR forms. Search any keyword to find a form.