By Michelle Yam, MRIS Manager of ComplianceMRIS, Jan. 28, 2008–A variable rate commission occurs when the seller/landlord agrees to pay a different commission if the property is sold or leased by the listing broker without the assistance of a cooperating broker. A different commission rate is paid if the listing is sold or leased with the assistance of a cooperating broker. Since the variable rate commission might have an affect on the acceptance of a contract, it must be disclosed that there is a variable rate commission. To indicate that there is a variable rate commission, enter ‘Modified Exclusive’ as the listing type and enter “Y” in the variable rate commission field.
Since the total negotiated rate between the seller and the listing broker is not disclosed in MRIS, the details of the variable rate commission are not entered and do not appear in any listing printout. It is the responsibility of the cooperating broker to ask the listing broker about the details.
If you would like more information about this article, contact: Compliance@mris.net