How Not to Get Paid

There's a simple way not to get paid in the real estate world.  Don't complete your paperwork! 

Many  brokers will not disburse the commission to an agent in their office if they have not handed in a completed file.  In our St. Paul real estate office, a complete file consists of:

• the agency disclosure form signed by the client before signing the contract
• the buyer's representation contract or the listing contract
• our company's disclosure form regarding an administration fee that is charged at closing
• a controlled business arrangement disclosure if the client is using the services of a sister company
• an MLS input sheet for listings
• a multiple offer directive for listings
• a net sheet for listings
• all pages of the purchase agreement signed by all parties, numbered, and with a final acceptance date written in on the signature page
• any counteroffer addenda which change the terms of the first purchase agreement
• all addenda including financing addendum, inspection contingency addendum, contingency on the sale of the buyer's house, personal property addendum, etc.
• all disclosures including the seller's disclosure acknowledged by all parties, lead paint, methamphetamine, well and septic, and arbitration
• a copy of the city point of sale inspection
• a certificate of completion for any repairs required by the city point of sale inspection
• a copy of the settlement statement from the closing
• a closing worksheet that summarizes the transaction giving contact info for buyers, sellers, real estate agents, and title companies

There are other forms that are not common to every transaction, but this list gives a sense of how much paperwork is required of the real estate agent.

On one of my listings a seller's disclosure was given to the buyer's real estate agent in June.  The disclosure has still not been returned to me with the buyer's signatures on it.  I've called and e-mailed the agent multiple times and finally got desperate enough to contact his broker.  Still no signed disclosure has been returned to me.  The buyer's agent finally admitted to me that, whereas I gave him the disclosure, he neglected to get his clients to sign it!  The buyers did not attend the closing or I would have gotten their signatures at that time.  The agent's broker told me his agent had not yet been paid for this file.  That would seem to be motivation to get one's job done, but it doesn't seem to be enticing this agent to action.  In the meantime, my file is waiting for the paperwork to be completed because the other agent didn't get his work done!

Comments

[Bonnie Erickson]

I think all of us who have been in the business for a while have experienced the same frustration you're expressing. Clients think we get the check immediately at the closing table when in actuality, we may way weeks for the commission to come through!

[Teresa Boardman]

There is another way to not get paid. Represent a buyer. The listing agent takes the entire check and cashes it. Both real estate companies decide that if they don't have the check they won't pay the co-op agent who represented the buyer. All of this is against department of commerce and MLS rules and I think it is illegal to cash a check that belongs to someone else. I could list several other way to not get paid.