Do Real Estate Agents Split Commission: https://www.hauseit.com/do-real-estate-agents-split-commission-nyc/
Calculate Seller Closing Costs in NYC: https://www.hauseit.com/closing-cost-estimator-for-seller-nyc/
Are listing brokers legally required to co-broke with buyers’ agents? Do real estate agents split commission with each other in New York State and NYC?
Contrary to popular belief, listing brokers are not legally required to share commission with buyers’ brokers unless they have an existing agreement in place, such as a MLS co-brokerage agreement. However, it is the opinion of New York’s Department of State that listing brokers must oblige a buyer’s desire to have their own representation.
In other words, listing brokers are required to let buyers have a dedicated buyer’s agent if they wish, but they are not required to split commission with the buyer’s Realtor unless the two brokerages have an existing commission agreement in place.
So do real estate agents split commission in practice? Yes, because Realtors are members of a local MLS that enforces the splitting of commissions through a mutually binding co-brokerage agreement that each brokerage must sign before joining the MLS.
According to an opinion letter from New York State’s Deputy Secretary of State Renato Donato, Jr.:
In prior opinions, the Department of State has stated that a listing’s broker must always honor the buyer’s right to be represented by his or her own broker, and that the listing broker cannot refuse to work with a buyer’s broker. The listing broker is not, however, obligated to share the sales commission with the buyer’s broker unless, prior to the sale, the two brokers have agreed to do so.
Do Real Estate Agents Split Commission with Brokers Who Are Not Part of the MLS?
Just because you have a broker’s license does not mean that listing brokers must share their commission with you. You must also be a member of the local MLS, or REBNY if you’re looking to purchase in New York City.
This fact is often misunderstood by lawyers who also happen to have a broker’s license on the side. Just because you are licensed does not entitle you to an automatic co-broke!
That’s why it’s important to work with a trusted buyer’s broker who is a member of the relevant local MLS in order for you to receive a buyer closing credit.
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Save up to 6% in Broker Commission: https://www.hauseit.com/fsbo-nyc/
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