Buckhead Atlanta -
Should FSBO Pay Commission When Agent Brings Buyer?
Whether in Buckhead Atlanta or elsewhere - Should the FSBO Seller Pay Commission to the Real Estate Professional who brings a qualified Buyer to the table?
The question is not really "SHOULD" - it is: "What does the Real Estate Professional need to do ahead of showing to guarantee that a Commission will be paid to the Brokerage?"
Every state or region will have a different format but in Buckhead Atlanta, FMLS offers a form titled "AUTHORIZATION TO SHOW UNLISTED PROPERTY" (F3) which may be used to assure that everyone understands about showing FSBO offerings.
The "AUTHORIZATION TO SHOW UNLISTED PROPERTY" form actually details the rights and responsibilities of all parties to the showing. Included are sections about -
- Begin and End Dates for the Permission
- Legal Description of the home
- Price to be asked (which includes commission)
- Name or names of Potential Buyers
- Fair Housing Disclosure to Seller about regulations
- Commission to be paid when "ready, willing and able" Buyer succeeds with the purchase
- Arbitration and Referrals
- Hazardous Conditions on the Property to be declared and/or remedied by FSBO
- Seller documentation to prove the FSBO has Title or full Legal Authority to sell
The "AUTHORIZATION TO SHOW UNLISTED PROPERTY" form clearly states that the document does NOT create a Brokerage relationship with the Seller. In addition, it recommends the use of the official GAR forms for the transaction.
The answer to "Should the FSBO Seller Pay Commission to the Real Estate Professional who brings a qualified Buyer to the table?" is similar to many questions in life.
The common denominator is planning ahead.
In Buckhead Atlanta, by using the proper "AUTHORIZATION TO SHOW UNLISTED PROPERTY" form, a valid Contract is created between the FSBO and the Real Estate Professional - assuring that the transaction proceeds in a positive and business-like manner.
All the best for you and yours at Thanksgiving 2015 -
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