Brian Madigan LL.B., Broker
BRMadigan@Rogers.com

RE/MAX West Realty Inc.,
Brokerage
Independently owned and operated

96 Rexdale Blvd. 
Toronto, Ontario 


Phone: 416-745-2300

Cell: 647-404-8150 
Toll Free: 1-888-507-0817

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Payment of Commission with a Zero Per Cent BRA

July 24, 2018 - Updated: July 24, 2018

Payment of Commission with a Zero Per Cent BRA

 

From time to time, an agent with complete a Buyer Representation Agreement and charge “0 %” in the commission clause.

 

Does this mean that the agent doesn’t get paid if they do an MLS deal? Do they have to turn over whatever may be the co-operating Brokerage’s commission to the Buyer? Do they waive that commission and leave it on the table for the Seller?

 

Here’s what the Buyer Representation Agreement (BRA) says:

 

“If, during the currency of this Agreement, the Buyer enters into an agreement to purchase …, the Buyer agrees the Brokerage is entitled to:
 

  1. receive and
  2. retain

any commission offered by a listing brokerage or by the seller.”

 

                                                              (formatting and numbers amended)

 

If the deal is struck at “x” %, then that’s it, no matter what amount might later have been placed in a BRA.

 

The commission deal is negotiated, just before the Agreement of Purchase and Sale (APS).

 

This arrangement is specified in the Confirmation of Coopertation and Representation (CCR).

 

Receive means that the Buyer’s agent gets it, and retain means that they keep it.
 

Also, there’s no money flowing to the Buyer in any way, unless there is an amendment of some sort.
 

The specified rate is helpful for the holdover “top-up” obligation, otherwise, it doesn’t really matter.

 

If the Buyer were expecting some kind of rollback of funds, then this would have to be handled differently.
 

On occasion, an agent will offer something, if they obtain the listing. So, effectively, there are two deals in play. It’s important to read the document carefully and ensure that it says what is intended. This will avoid misunderstandings in the future.
 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


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Brian Madigan LL.B. Broker

RE/MAX West Realty Inc. Brokerage

Independently owned and operated

96 Rexdale Blvd. , Toronto Ontario,

Phone: 416-745-2300

BRMadigan@Rogers.com

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