ABOUT AGENTS, BROKERS AND COMMISSIONS

Agents work for a broker, who may operate as an individual business or be a franchisee of a national or regional company. Agents and brokers are required to obtain the best price and terms on behalf of their clients. Regardless of the size of a brokerage, the broker and agents must be licensed and registered by the state.

Agents and brokers affiliated with the National Association of REALTORS® and its local association, such as the Salt Lake Board of REALTORS®, can be relied on for a high standard of service.

In early 2005, thanks in part to the efforts of the Salt Lake Board of REALTORS®, the Exclusive Brokerage Agreement was signed into law. This law, Utah Code 61-2-16 requires that This bill requires that when entering into an exclusive brokerage agreement a real estate licensee must do the following. 1. Present offers, 2. Present counter offers, 3. Answer questions for their client throughout the process.

An agent earns a commission when he or she sells a house. The seller pays the fee to the brokerage. This is the most common arrangement.

Seller brokers represent the sellers, listing details of the property and engaging to sell it quickly at the best possible price.

Buyer brokers specialize in finding the best property at the best price for buyers. Many buyer specialists obtain designations that enhance their knowledge of the particular needs of purchasers.

In some cases one brokerage represents both the seller and the buyer in a single transaction. This arrangement is called dual agency.

Whole books have been written about agency, and it is vital to ask the broker to spell out the arrangement that applies to your transaction.

Buyer and seller brokerages split the commission, with further splits going to the agents directly involved in the sale.

In tighter markets for sellers, the listing agent and brokerage may recommend a multiple listing, in order to "widen the net" for the right buyer. The advantage of a multiple listing agreement is that many brokerages have the details, and any one of the multitude of agents may have a client looking for exactly that kind of property.

Many resources available to Members of the Salt Lake Board of REALTORS® are designed to bring the greatest number of buyer and seller agents together to exchange property details. They include the Wasatch Front Regional Multiple Listing Service, a company that lists properties for sale and publishes them on a private network for WFR-MLS members.

Member services at the Salt Lake Board are also designed to enhance networking. Your agent will utilize their expertise and board resources to market your home in the best possible manner.

The name of the agent and brokerage involved in a transaction are usually found together on For Sale signs, property flyers and the agent's business card. It is not always clear, unless it is explained, who represents whose interests in the transaction. Agents are required to clarify whether they represent the buyer's interests or the seller's, and clients gain by making sure there is no confusion.

At the end of the transaction the seller should not have to pay more than the pre-agreed amount for the commission, regardless of how many brokerages have been involved in the transaction.