Don’t miss out on your commission if a client chooses a new build
05/27/2016 | Author: Editorial Staff
New home sales have seen a resurgence of late, and Texas is building more new homes than any other state. With that in mind, now is a good time to make sure you’re taking the appropriate steps to protect your commission when a client buys new construction.
Pat Strong, a Texas REALTORS® University instructor who teaches the “New-Home Construction and Buyer Representation” class, has some suggestions on how to do that.
Know if the home is on the MLS. Builders may choose to list some homes on the MLS but not others. For homes that are listed on the MLS, the service will define compensation. If the home your client chooses is not listed on the MLS, you will need another agreement in place with the builder to secure your commission.
Register with the builder. Accompany your client on the first visit, as some builders require buyer’s brokers to follow a set registration procedure to receive compensation in the event that your client chooses the builder’s home that's not listed in the MLS.
Use this form if the home is not listed on the MLS. The Registration Agreement Between Broker and Owner (TAR 2401) explicitly deals with broker’s fees.
Strong’s next “New-Home Construction and Buyer Representation” class is scheduled for June 8 in Austin.
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