Headlines: Adding Another HOT Lane; Blocking Access to Galveston Condo ‘Private Beach’

Photo of construction of Alexan West University Apartments at Bissonnet and Law: Russell Hancock via Swamplot Flickr Pool

7 Comment

  • Realtors are becoming more and more obsolete. Homes can be found and fully researched online, contracts are freely available, and all the legal documents are vetted by the title companies anyway. So, they’re just a glorified, living, breathing search engine, nothing more.

    I’m waiting for the law when Realtors can’t charge both sides of the commission or represent both sides in a transaction, that’s the biggest conflict of interest and financial scam on the planet.

    They are however trying to grasp to whatever shreds of power they have by flat out lying that only licensed agents can receive commissions (a lie)and by flat out refusing to accept offers not coming from another Realtor (a violation of TREC rules).

  • Slap a new name on it; hell–maybe even waste money on new, festive street signage. If you label it; the train will come. Riiiiiight.

  • @commonsense, care to share who else, besides the broker/agent, can receive a portion of the commission?

  • @Ross… besides an agent/broker:
    1. Anyone who’s an attorney
    2. Any person who is a party to the transaction. This is the important one, when you’re a buyer and represent yourself you CAN collect the buyer’s side commission.
    3. Any 3d party whatsoever as long as they’re listed as a “service provider” at closing.
    All of these are perfectly legal and specifically allowed by TREC rules.

  • Attorneys are excluded from receiving a commission, unless they have a license or are a party to the transaction

    From the TREC website, http://www.trec.state.tx.us/faq/faq-enf.asp#Cat23
    Q: Can a listing broker share a portion of the listing broker’s commission with an attorney who represented the buyer in a real estate transaction?

    A: No. A broker is prohibited from sharing fees with or otherwise compensating the attorney acting as a buyer’s agent unless the attorney holds an active real estate license. [TRELA §1101.651(a)] However, if the attorney is a party to the real estate transaction, the broker can pay the attorney a rebate. [Rule 535.147(d)]

    In general, a party may not receive a commission for performing an act that requires a license.

    If you represent yourself, it’s possible you can get the buyers commission, but it’s just as likely you will be told to pound sand.

  • Rule 535.147
    (b) An unlicensed person may share in the income earned by a business entity licensed as a broker or exempted from the licensing requirements under the Act if the person engages in no acts for which a license is required and does not lead the public to believe that the person is in the real estate brokerage business.
    (d) It is not a violation of this section for a licensee to rebate or pay a portion of the licensee’s commission or fees to a party in the transaction. However, no commission or fees may be paid to any party to the transaction in a manner which would mislead a broker, lender, title company or governmental agency regarding the real estate transaction or the financial resources or obligations of the buyer. A licensee who intends to pay a portion of the licensee’s fee or commission to a party the licensee does not represent must obtain the consent of the party represented by the licensee prior to making the payment.

  • I will admit that Realtors resist sharing commissions or paying the buyer’s side commissions to the buyer directly, but many of them now do and will not pass up a deal, especially if they’re still making full seller’s side commission. I would make sure to negotiate that point before making a written offer.
    I see this becoming a more contentious issue in years to come and Realtors will eventually have to cave and change their fee structure to reflect realities of modern home purchasing.