RULE OF: Procuring Cause ". . . the uninterrupted series of casual events which results in the successful transaction." This rule determines who is entitled to the Commission offered and would be the basis of any mediation or arbitration; It is best for the parties involved to know who represents who.

Exclusive Representation agreements are Buyer Agent Contracts between the Buyer Agent and the Buyer.

REALTORS are instructed to ask if prospective clients have already signed an exclusive representation agreement with a licensed agent. REALTORS who do not ask about an exclusive agreement may be found guilty of violating the Realtor Code of Ethics.

If contacted about their property; an informed Seller should also inquire whether the party to whom they are communicating is a licensed agent or whether the party is represented by a licensed agent.

Flat Fee Listing Contract (See 11.4 Dual/Variable Rate Commission) It is EXPRESSLY UNDERSTOOD and AGREED that if the SELLER locates an Unrepresented Buyer; The BROKER will reduce to 0% the above BAC portion of the Brokerage Fee at closing. As required by all Licensed Agents, SELLER must inquire of Buyers Representation Status at introduction. NOTE: A signed Unrepresented Buyer Disclosure is required for this BAC waiver. Without this addenda signed by the Un-represented Buyer, the Buyer Agent Commission noted above will be due to Listing Brokerage at closing. Seller may also direct Un-represented Buyers to Broker for Limited Agency. (See 11.3 Limited Agent) Upon acceptance by Buyer, An one half split ( ) of the BAC noted above would apply for such representation. In the event of any procuring cause arbitration by another BROKER, The SELLER will indemnify the BROKER, and will immediately reimburse the Company for any Buyer Agent Commission awarded by an arbitration panel to another Broker including all Attorney fees. Seller may then pursue the Un-Represented Buyer for damages based on the documented Unrepresented Buyer Disclosure.

What is a dual/variable rate commission?

A dual or variable rate commission is one in which the seller agrees to pay a specified commission if the property is sold by the listing broker without assistance and a different commission if the sale results through the efforts of a cooperating broker; or one in which the seller agrees to pay a specified commission if the property is sold by the listing broker either with or without the assistance of a cooperating broker and a different commission if the sale results through the efforts of a seller.

Compensation Without Contingencies

MLS Policy: Occasionally, some of our members are faced with situations in which their client wishes to contract to sell a property, and they agree to pay the buyers agency commission, but the client insists that the commission not be paid if the buyer is a real estate agent/broker or a family-member of an agent/broker. Listings in which there are contingencies placed on the buyer's agency commission are in violation of the Multiple Listing Service policies and procedures. Our policy is as follows:

the listing broker shall specify, on each listing submitted to MLS, the compensation offered to cooperating brokers for their services in the sale of such listing as set forth in the applicable listing agreement. Such offers are unconditional, except that entitlement to compensation is determined by the cooperating brokers performance as the procuring cause of the sale, or lease

While a seller is entitled to place such contingencies on the sale of their property, such listings may not be placed on the Multiple Listing Service.