Hi I have taken the real estate exam 6 times and this question keeps coming up and I cant find it in the book anywhere. it is a general question, please ONLY PEOPLE WHO KNOW ANSWER QUESTION PLEASE.... it was something like this....Sales Associate "Laura" is employed under Broker "A" and finds a prospective buyer "C" to sell a listed property to. When sales associate Laura finds out that Broker "A" wont pay the commission she thinks is fair, she tells buyer "C" to wait to make an offer, until she finds a new broker. Laura leaves Broker "A" and is now employed under Broker "D", and prospective buyer "C" is okay with this. Which answer is correct?"this is illegal""this is legal, but unethical""this is ok if buyer "c" agrees
You have stated the question wrong I am sure- but I am also sure that the answer they want is that it is illegal. When an agent works for a broker- any buyer or seller they find is not theirs- it is the broker's client or customer. If they leave that association with the broker they also have to leave the client or customer.
This is one of the very most basic questions asked on the real estate exam. The first and most underlaying principle in real estate is that the agent puts the best interest of the client before her own. Obvious this agent isn't doing that. This is illegal. A Realtor or agent is required to put the client's interest before her own. By asking the client to wait to make an offer until after she changes brokerages demonstrates that she is putting her own best interest before the client. What would happen if the seller received and accepted another offer in the meantime? This is not only illegal but is against the Realtor's Code of Ethics. This agent could be fined or have her license either suspended or revoked.
200% illegal Sales Associate Laura is employed under Broker A and finds a prospective buyer C to sell a listed property to. --this is being a dual agent, but we will skip that part --- When sales associate Laura finds out that Broker A wont pay the commission she thinks is fair, she tells buyer C to wait to make an offer, until she finds a new broker. ---no such thing. When a property is listed, it comes with a commission to be split between both selling broker and buying broker AS LONG AS THE SELLING OWNER has agreed to this. 95% of sellers do ----the agent's commission is listed in advance as long as the listing BROKER agreed to do so. NAR requires that. --- Laura leaves Broker A and is now employed under Broker D, and prospective buyer C is okay with this. ---of course the buyer is happy but it is not important for the buyer to be ok-- Which answer is correct? whoever wrote this question was drunk--as it is the dumbest thing I have read in 45 yrs. When a property is listed--it requires a %, to be split. culturally, it is 7% for residential, and higher for other types of property. ---I have never known for this commission to be split in any way OTher THAN 50-50 BETWEEN BROKERAGES. IN this case, it seems that the same brokerage will be the listing brokerage and the buying agent's brokerage-- dangerous but legal still as long as the Realtor who found a buyer got the buyer to sign a dual agency agreement. ---So, for at least 3 reasons, this question makes no sense. I am presuming after reading this 3 times that the property and listing agency is in the UK, not the USA. THE agents may not negotiate the % AFTER THE FACT. [AFTER THE LISTING HAS BEEN SIGNED BY THE seller and listing broker] That agent will lose their license anywhere............ and if wherever this was done, a listing % IS NOT set upon the listing being taken--several laws and rules are being broken.
