Don’t miss out on your commission if a client chooses a new build

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The framing of a large wooden structure atop a huge slab of concrete.

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.

Categories: Business tips, Buyers
Tags: buyers, business tips, buying, new homes

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Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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