Do you plan to base your listing or cooperating compensation on a net sales price?   Make sure to explain clearly how the net will be calculated in your agreement, whether you’re negotiating a listing agreement, buyer contract, or purchase and sales agreement.  Failure to do so can result in disagreements about what expenses will be deducted from the gross sales price.   Conflicting interpretations can delay the closing until all parties agree.

Other options include, but are not limited to, charging a dollar amount; basing compensation on the gross sales price, an hourly rate, or using a hybrid approach.  Compensation is negotiable.

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