Re: Real Estate Agent - Realtor or Broker :is It a True Scenario
there being a loan has nothing to do with whether an agent is due a commission or not.
He says that he is only a realtor but not broker. If he would have been both, then all 3% would have come to him, without any split. Is this a true scenario ? . Not sure how broker is involved when there is no loan
First, I know it's picky but:
Not all real estate agents are Realtors. To be a Realtor, the agent must be a member of the Realtors Association. Along with that, not all Realtors are neccessary real estate agents. One can be a Realtor and not be a real estate agent but instead something such brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry.
Anyway, a real estate agent earns their commission by performing as required by their contract. If you agreed to pay X% to your agent, then if he performs as stated in the contract, you owe him that X%.
A real estate agent must work for a licensed brokerage. Your agent could be a broker but apparently is not but works under a broker. The sharing of the commission is controlled by the contract between those two entities. Some companies split it 50%/50%. Others charge their agents fees for office space or such and the agent retains 100% of the commission. The point is; it is irrelevant to you.
Then, if the seller hired an agent and agreed to pay a commission to that agent, it is not uncommon for that commission to be split between the sellers and buyers agencies. Again, this is controlled by contract or agreement.
I am not an attorney and any advice is not to be construed as legal advice. You might even want to ignore my advice. Actually, there are plenty of real attorneys that you might want to ignore as well.