Confirmation of Cooperation and the Missing Commission

Let’s assume that you have a Buyer Representation Agreement (BRA) in place which enables you to charge your client 2.5%.

Then, you come across a property on MLS. It says cooperating % is 2.0%. You proceed with the deal and in the CCR say “commission as per MLS”. Lots of agents do that. Yes, you will receive your 2%, but what about your missing 0.5%?

Sorry, it’s too late!

You were supposed to inform your client in advance of the deal, that the % was short. That was perhaps the CCR (a duplicate copy modified for your client) or preferably another document.

But, once everything is all signed up, it’s too late. That’s the fiduciary duty of “accounting” and you missed out.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com