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 angelam@rahb.ca
How can a cooperating broker ensure or get proof that a the seller
has agreed to the clause “50|% of cooperating commission will be given to listing broker if shown by listing broker other than in an open house
Hi Mike,
Should a member have a concern regarding whether a seller is aware of the cooperating commission, they may send their concerns in writing to RAHB, who can conduct an audit on the listing to verify the information. Failure to provide the requested documents would result in the matter being referred to the Professional Standards Committee.
What is the basis for this assertion on behalf of RAHB. The assertion may be taken, in any dispute, as permission by RAHB for the terms that are set out in the MLS® Listing. Yet, it is not a tested in court matter, to my understanding. While RAHB may identify the details as provided by the Listing REALTOR®, the subject of the enforce ability of the term for commission claw back is a matter of contract. It may also be a reflection of REBBA 2002…for instance, the application of commission and code of ethics requirements that must properly reflect and respect the rights of a person represented by a REALTOR®.
Hi Cameron,
Staff was requested by the MLS® Committee to post a communication surrounding commission clawbacks reminding members that if a listing has a commission clawback, ensure your legal documents are complete and have been signed by the seller(s). Reviewing Commission Clawbacks was on the MLS committee’s work plan.
What part of this does the Broker of Record have with his employee, Realtor. Would this not be aproved by the office Broker of Record. The listing and details are the responsablity of the Brokerage when being posted for public information. not RAHB.