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Brokerage Compensation is contracted between the Seller and Listing Brokerage, in most cases the Listing Brokerage offers a portion of this compensation to Cooperating Buyer Agent/Brokers. This is known as the Coop Buyer Agent Commission. This contracted Coop incentive is offered from Listing Broker to Selling Broker. The Selling Broker (Buyers Broker) should also have a Buyer Agent Agreement, noting the amount of compensation that is required of the Buyer Agent for services rendered. In the event the Coop amount offered is less than contracted between Buyer And Buyer Brokerage, adjustments to the offer may be required. Licensees are instructed to inquire if prospective clients have contracted / signed an exclusive representation agreement with another licensed agent. Broker/Agents who do not inquire about an the exclusive agreement may be found in violation of the Realtor Code of Ethics. | If contacted about their property; The LISTED Seller should also inquire as to whether the party to whom they are communicating is a licensed agent or whether the party is represented by a licensed agent. Broker/Agents should disclose there status as Licensed Broker/Agents up-front, Buyers should also disclose their status of being represented by a Licensed Broker/Agent. These disclosures identify to all parties the Agency involved in any upcoming transaction and avoid future miss-communication in the selling process especially regarding compensation issues. Real Estate Commissions are negotiable and are not established by law. |
| Standard of Practice 16-16 NAR REALTORS®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing brokers offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing brokers agreement to modify the offer of compensation. (Amended 1/04) | |
| AGENCY should be disclosed up-front. Utah Licensee Conduct 6.1.11.2. A principal broker and licensees acting on his behalf who represent a buyer shall have a written buyer agency agreement with the buyer defining the scope of the agency. | |