Commission claw back clauses on listings are perfectly acceptable, provided the commission in the Co-operating Brokerage Commission section of the Property Information Form is the same as the commission on the Listing Agreement, and both documents are signed and dated by the Seller.
Commission claw back clauses cannot be added to the Commission to Co-operating Brokerage section of the Property Information Form, or to an additional schedule, if they are different than what is on the signed Listing Agreement. By ensuring that the commission to the Co-operating Brokerage is the same on the Listing Agreement, and Property Information Form, or any Schedule to the Listing Agreement, you will be complying with Sections 38 and 39 of the RECO Code of Ethics.
If you are changing commission to the Co-operating Brokerage Commission, after the Seller has signed the original Listing Agreement and Property Information Form, you must ensure you complete either the Amendment to the Listing Agreement Form or OREA’s Form #244 “Seller’s Direction re: Property/Offers”, detailing the changes to the commission, both of which are to be signed and dated by the Seller.
If you wish to file a formal complaint, please send your complaint in writing to Angela McArthur, care of the Professional Standards Committee at email@example.com