Louis Mangione

Innovations in Education, Inc.

The Fee To Be Paid To A Buyer`s Broker By A Buyer-Client Is Determined By Agreement Between

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As late as the 1960s® local boards of directors actually published a “Board Commission Rate”. The board`s fixed commission rates ended when the federal government began suing boards and winning. But in its place, in some areas of the country, some brokers have started using board meetings or boards of directors to “discuss” commission rates. This behaviour has resulted in a second round of federal price action. As a result® REALTORS are and must be very paranoid about any discussion of commission rates. In the typical case of a competing broker, you have an agent who helped the buyer in some way identify the property and another agent who helped him write the contract or help the buyer execute the contract as soon as it was written. Choosing between competing brokers requires a careful examination of the entire process, from the moment the buyer first learns about the property until they close the transaction. The objective of this investigation into the events is to find the acts that proved essential to the outcome. The possibility of unilaterally terminating an agency relationship does not mean that there cannot be contractual or legal consequences for the termination of the relationship. In real estate, such consequences often become a problem when the seller wants to end the offer before expiration. The seller`s right to terminate the loyalty contract as a contract is not the same as his right to terminate the agency relationship by revoking consent. The agency relationship itself ends at the time the seller withdraws his consent to act on his behalf, but, depending on the circumstances, this may also be contrary to the listung agreement.

In the past, the “mom and pop” structure of the real estate services market has been such that commission sharing has been of great economic utility to almost all real estate service providers. The only problem with this type of economic bootstrapping is the transaction costs associated with creating cooperation between many small brokers. These costs include costs related to the exchange of information necessary to enable cooperation and costs related to the repeated negotiation of commission allocation agreements between many different parties. . . .

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