A listing broker offers compensation to cooperating brokers that is different from the amount that you want.  Perhaps a listing broker offers no compensation at all because the property, such as a commercial listing or a rental listing, is not required to be listed in State-Wide Multiple Listing Service, or the listing broker and you are not part of the same MLS. 

How can you legally and ethically be paid the amount that you believe that you’ve earned?

• Explain to buyer clients and customers up front how you are paid. Make sure to explain what services you will perform; how much you plan to charge; and who will pay you. Article 12 of the REALTOR® Code of Ethics prohibits cooperating brokers from telling buyers that your services are “free” unless you literally plan to receive zero compensation from the listing broker, seller, or buyer or anyone else.

If you will be compensated by more than one party, comply with Article 7 of the REALTOR® Code of Ethics: “In a transaction, REALTORS® shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed consent of the REALTOR®’s client or clients.”

• Use a buyer representation agreement. The RIAR Exclusive Buyer Representation Agreement offers a way for a buyer and you to agree to your responsibilities and compensation. The agreement authorizes the buyer representative to seek compensation from other sources. It also includes an option to require the buyer to make up any difference.  

If you haven’t used this type of agreement, get “hands on” training from the Rhode Island Association of REALTORS® Professional Development Center.  There are several courses that will assist you such as two Accredited Buyer Representative Designations, ABR for associates and ABRM for managers only (new).  Others are available with more in development.  Email [email protected] for details.

Check with your broker about other training opportunities.

• Negotiate with the listing broker. Make a pitch for why the listing broker should offer you a different amount. If the listing broker and you agree, both of you should sign the RIAR Compensation to Cooperating Brokerage form with the new compensation.
• Build your compensation into the purchase and sales agreement. If the listing broker won’t change the compensation, add language to the purchase and sales agreement with the buyer’s consent.

For more information, please contact the RIAR Legal Department at 401-432-6945 or email [email protected].