What a mess... the ongoing saga of the NAR settlement fallout. Set up a buyer on a payment plan to pay the buyer agent commission? I assume you would get your promissory note recorded so it becomes a lien of record against the property, just like a promissory note for a mortgage, or a contractor's lien. Otherwise, how would you enforce it? Even with that, you're still in line behind the property taxes, mortgagor, HOA, etc.
A payment scenario would be very rare, but I'm showing an example of the length I would go to seek compensation so that a buyer couldn't have an excuse to cut me out. And, should such a scenario present itself, I would not record a lien. I would have that note and if the client refused to pay I would escalate the matter legally. This already happened to one of my agents this year, I went to court, won, got paid, case closed.
Procuring cause is a code between agents as to whom the client belongs. However, the BRBC does have protections in place between the agent and client so long as the agent fills it out properly. Notably the "Broker Involvement" section and continuation period.
They can add your commission into the loan. If they can't then they probably can't afford to pay you monthly also. "All their money is going into the mortgage".
That will solve the problem 90%+ of the time. There will be cases when the appraisal comes in low or the seller is uncooperative. Also consider some buyers will make the claim dishonestly for some selfish reason. There must be measures taken with the rep. agreement to prevent the possibility of such a claim long before an offer is drafted.
@@1percentlistingssandiego The text I was reading was from the DRE which was setting regulatory guidelines based on the application of the law. In other words, a plausible scenario is which licensees are being informed by the DRE they can legitimately be cut out.
That was an advisory email. Which when I read it, I wonder who their audience is I thought it was strictly for real estate licenses. If you read the fine print, it says it’s not to be used or disseminated to the public without consent but yes, you have to wonder who they are trying to protect. The best thing to do is just to focus on listing as always.
Thank you! Really love your straightforward videos.
Wow. Thank you for letting us know about this
100% agree about G(2). I thought exact same when the new form was released.
What a mess... the ongoing saga of the NAR settlement fallout. Set up a buyer on a payment plan to pay the buyer agent commission? I assume you would get your promissory note recorded so it becomes a lien of record against the property, just like a promissory note for a mortgage, or a contractor's lien. Otherwise, how would you enforce it? Even with that, you're still in line behind the property taxes, mortgagor, HOA, etc.
A payment scenario would be very rare, but I'm showing an example of the length I would go to seek compensation so that a buyer couldn't have an excuse to cut me out. And, should such a scenario present itself, I would not record a lien. I would have that note and if the client refused to pay I would escalate the matter legally. This already happened to one of my agents this year, I went to court, won, got paid, case closed.
So procuring cause is just getting thrown out the window??
Procuring cause is a code between agents as to whom the client belongs. However, the BRBC does have protections in place between the agent and client so long as the agent fills it out properly. Notably the "Broker Involvement" section and continuation period.
They can add your commission into the loan. If they can't then they probably can't afford to pay you monthly also. "All their money is going into the mortgage".
That will solve the problem 90%+ of the time. There will be cases when the appraisal comes in low or the seller is uncooperative. Also consider some buyers will make the claim dishonestly for some selfish reason. There must be measures taken with the rep. agreement to prevent the possibility of such a claim long before an offer is drafted.
The text you we’re quoting from is not the text in the law. I read that as just a example of what could happen for the buyer.
@@1percentlistingssandiego The text I was reading was from the DRE which was setting regulatory guidelines based on the application of the law. In other words, a plausible scenario is which licensees are being informed by the DRE they can legitimately be cut out.
That was an advisory email. Which when I read it, I wonder who their audience is I thought it was strictly for real estate licenses. If you read the fine print, it says it’s not to be used or disseminated to the public without consent but yes, you have to wonder who they are trying to protect. The best thing to do is just to focus on listing as always.
Dual Agency is going out the door in CA very soon.
Just curious why do you think this? I would assume there will be more because buyers will go directly to the listing agent; but I'm not sure.