Question:
An agent contacts you that they are bringing in an offer on your Listing, but waiving their commission. Do you disclose to the other agents who are presenting Offers? Are you breaching rules about NOT disclosing the contents of any other offer?
Answer:
If you agree to a commission reduction, then you would have to disclose that. But, just because they ask, doesn’t mean you have to go along with it. By that, I mean amend your listing agreement with your Seller to eliminate the co-operating side of the commission for this Agent.
At this point, you have to tell others. Don’t do this, it’s unwise! The other agents will be forced to have a commission reduction discussion with their clients. Somebody else is going to bow out.
So, just say “no”. The commission offered is in your contract with your client. If they don’t take it, you will keep it. That will level the playing field. You don’t have to pull out a calculator to figure out the Offers.
Let them receive the commission:
- pay HST,
- share it with their Brokerage, and
- pay their income taxes like everyone else in society.
After they get their own paycheque they can give whatever they have leftover to their client. Otherwise, you are getting bullied here!
If as the Listing Brokerage you decide to do this late one evening after all the Buyers’ Reps have shown your listing, spent the day with their clients and you have tied them up all evening only to pull their commission at the last moment, you will turn into “scum” and no one will show up at your next Bidding War! The only saving grace is the present market (January 2022). However, your career will be short. If you demonstrate strength, don’t get bullied, treat everyone fairly, don’t pull commissions at the last moment, you will be respected and everyone who didn’t win will show up next week, because they trust you.
Brian Madigan LL.B., Broker