6.1 COMMISSION SCALES
Providing a most competitive commission scale to our sales associates along with the finest in services, staff facilities and reputation is always our foremost desire at McCraw Real Estate.
6.2 a) The Listing and Selling Commission percentage referred to herein shall apply only to the real estate commission received by the Company in connection with the sale or lease of real property by the sales associate. The commission shall be determined after any and all adjustments.
b) On all Company listings, the listing and/or selling agent(s) will be paid on the gross commission collected from the seller, less any adjustments.
c) On sales of co-op listings, the agent’s commission will be figured on what the Company receives.
d) In the event there is more than one listing or one selling agent, the commission on that side of the transaction will be divided as the agents have agreed in writing and each agent will be paid that percentage of their commission bracket. In the absence of a written agreement, the commission will be on a 50/50 basis.
6.3 ADJUSTMENT IN COMMISSION
a) Prior to any adjustment in the commission, the adjustment must be approved by one of the Brokers, or the adjustment will be deducted fully from associate’s portion of the commission.
b) On a co-op sale, when a commission adjustment is necessary, get the approval of your broker and the written approval of the co-operating company. The approved written adjustment must be provided to the closing agent of the transaction.
6.4 COMMISSION PAYMENT TO ASSOCIATES See Fee Schedules A, B, and C.
6.5 FORFEITED EARNEST MONEY
Do not make representations regarding disbursement of earnest money deposits without consulting your broker.
6.6 REFERRAL FEES
Referral fees (not corporate service referrals) will be split in accordance with the associate’s commission schedule. No bonus level applies.
All bonuses paid by sellers are to be paid to the Company and will be paid in full to the earning sales associate. Bonus earning requirements must be in writing with all details and exceptions clearly spelled out.
When a transaction comes through to be paid with a bonus in addition to commission, the bonus is not figured with the gross commission. The full bonus is paid to the appropriate listing or selling agent. In turn, we show that dollar amount as an outside broker payment to the agent it involves. There is no credit given towards the agent reaching their next commission bracket nor is any additional volume accrued.
6.9 DEFERRED COMMISSIONS
Prior management approval is required in all cases. Deferred commissions are definitely not encouraged.
a) When all or part of the commission is received on an installment basis, the associate will be paid on the agent’s earning bracket prevailing at the time of closing. Payments shall be disbursed when installments are received.
b) The decision to defer a commission, in whole or in part, usually becomes a factor in putting a sale together. For this reason, the listing/selling agents, sales manager, and sellers as applicable, should be involved in drawing up the deferred commission agreement.
6.10 RIGHT OF COMPANY TO ADJUST COMMISSIONS AND/OR SETTLE CLAIMS, DISPUTES OR LITIGATION WITH THE PUBLIC
a) Prior to closing, all commissions paid or due are subject to negotiating to settle claims, disputes, or litigation.
b) After closing the Company has sole discretion as to actions taken regarding claims, disputes or litigation.
c) The sales associate agrees to immediately inform his/her broker of all pending or possible disputes, mediation, grievances, or litigation with the public and/or other brokers.
d) The Company Attorney will be used and cost shall be split between the Company and the sales associate at the associate’s commission percentage prevailing at time of sale.
6.11 INTER-COMPANY DISPUTES
a) If two or more sales associates of the Company have a dispute, it is recommended that the sales associates discuss the problem with each other.
b) If necessary, all parties to the problem should meet with the broker and discuss the possible solutions to the problem in an attempt to resolve the situation. Discussion among other staff or agents “seeking their advice” is inappropriate and will not be tolerated.
c) If necessary, management will resolve the dispute with a final decision given to all parties.
d) It is recommended that the public should not be involved in the event of disputes between sales associates. Register any disputes with your broker. If an agreeable solution cannot be reached, the associate may request arbitration/mediation.
6.12 OUTSIDE BROKER DISPUTES
a) In the event of disputes with other companies, the broker is to be notified immediately. In the case of a dispute that cannot be negotiated satisfactorily between the companies involved, the case will be submitted to the appropriate Committee of the New River Valley Association of REALTORS. All disputes must have management approval prior to submission to the Board. Discussion among other staff or agents “seeking their advice” is inappropriate and will not be tolerated.
b) with the advent of mediation services, the company would reserve the option of mediation instead of the Arbitration Committee of the New River Valley Association of REALTORS.