ANSWERLINE

By Thomas R. Miller
Deputy Legal Counsel

Q. I am a licensed real estate broker. A few days ago I was showing houses to a prospective buyer when we discovered a house for sale on Maple Street. The sign in the front yard indicated that the house was listed by my competitor, Acme Realty. The buyer desired to see the house, so I called the broker at Acme to arrange a showing. During my conversation with the broker, he stated that he would permit the buyer to see the house but would not split his commission with me. Instead, he promised to pay me a flat $600 fee if the buyer purchased the house. I do not think the broker's refusal to split his commission with me is fair. Would it be proper for me to insert a provision in the buyer's offer to the effect that if his offer is accepted by the seller, Acme Realty must pay me half of the sales commission?

A. No. As a general rule, commission provisions should be covered in listing contracts-not sales contracts. Contracts for the sale of real estate and listing contracts are, and should remain, separate agreements. Each contract has its own distinct purposes and parties which make it different from the other. By inserting the provision mentioned above, you are asking the seller of the property to deliver something that is not his to give; namely, a portion of the listing broker's commission. Only the listing broker may bargain his right to a commission away, and he will not even be a party to the sales agreement. Your real estate license creates no automatic right to claim a portion of the listing broker's commission. You may do so only with his consent in the form of a co-brokerage agreement.