Zillow Advice: Home Selling - Are sellers required to disclose agent compensation details? (MA) http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ Zillow Advice | Zillow Real Estate Though no one has to report ... http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ Though no one has to report it to the "buyer", as previously mentioned, it does need to be disclosed to the "selling agent" (buyer's agent) if a co-op commission is being offered, and what that is.<br/><br/><u><strong>AND</strong></u>&nbsp; all the transaction fees have to be reported on the HUD-1 form to the FEDERAL GOVERNMENT.&nbsp; It is a mandatory form.&nbsp; I think the only way one can avoid a HUD-1 form for a transaction is if an owner transfers the title to a trust, or similar.<br/><br/>But the HUD-1 forms are not "public record".&nbsp; One cannot just go to HUD and say "what were the fees on this transaction?"<br/> Wed, 21 Aug 2013 08:37:00 GMT http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ 2013-08-21T08:37:00Z This is a very interesting ... http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ This is a <em>very</em> interesting question.&nbsp;I have read it (and your later response) several times&nbsp;in order to try and get a better understanding of your situation. Even though I am late to the party I wanted to answer your questions just in case you haven't worked it out yet.<br/><br/>You asked if <em>sellers</em> are required to disclose to buyers if they are working with an agent and the agent is being compensated and what that compensation is. The answer is no. Sellers are not required to do any of that. It is the responsibility of their <em>agent.</em><br/><br/>The Multiple Listing Service, that covers a large majority of the state, reqiuires listing agents to disclose what percentage they are offering as compensation to agents working with buyers if they have a buyer that does buy your house. <br/><br/>If the fee that you and your agent have agreed to (in writing) is 6% for example, half of that (3%) would be offered through MLS, payable at the closing. The seller&nbsp;or listing agent is not required to offer compensation but if they don't your house will have very few showings, if any.<br/><br/>An uncompensated agent is not rare. It does not exist. Like a unicorn. (Is anyone uncompensated in your line of work?).<br/><br/>If a buyer is not working with an agent, and you have an agent, the buyer will most likely put the offer in with your agent. Whether the listing agent represents you or not in this scenario would have been predetermined at the time you signed the agreement to sell. If neither of you have an agent then there is nothing to discuss.<br/><br/>When a buyer starts working with an agent to help them find a home the question always comes up. Buyers want to know how we are paid and if they have to pay our fee, and rightfully so. Since everyone knows that we provide a service in exchange for financial compensation there is nothing to hide. <br/><br/>As far as your last question, I don't understand what you mean by a competitive offer. Was there more than one offer for the home? I ask becasuse buyers are not generally factoring in&nbsp;the fee when they get to the stage of making and&nbsp;negotiating an offer.<br/><br/>Now I must ask you, why would you hire an agent and then want to hide them? How does that benefit you? <br/><br/> Wed, 21 Aug 2013 02:09:00 GMT http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ 2013-08-21T02:09:00Z -&nbsp;When negotiating with ... http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ -&nbsp;When negotiating with buyers, are sellers required to disclose any of the following to buyers:<br/><br/>No.<br/><br/>-&nbsp;Also, do the answers to any of the above vary depending on whether the buyer has a formal "buyer's broker" vs. is operating brokerless?<br/><br/>No.<br/><br/>-&nbsp;doesn't a buyer have to know this in order to know whether a competitive offer should or should not be increased to account for the fee?<br/><br/>Several million real estate transactions a year close regardless, so I suppose the answer is, "No."<br/><br/>Hope this helps, Tue, 12 Mar 2013 22:19:00 GMT http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ 2013-03-12T22:19:00Z "Is the seller required to ... http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ "Is the seller required to disclose whether or not they are working with a compensated agent for the sale?&nbsp;"<br/><br/>No, I don't think they do. Sellers are not generally required to disclose any professional that they employ outside of the contract unless it impacts the disclosure statement. For example, if they hire a foundation inspector and he find problems they would have to disclose that. However, if they hired an agent or a stager before the house went on the market, they wouldn't. There is a <a href="http://www.mass.gov/ocabr/docs/dpl/boards/re/disclosure-form-agency-non-agency.pdf" rel="nofollow">legal obligation for agents who represent the seller only to disclose</a> if they are part of the negotiations and one <a href="http://www.mass.gov/ocabr/docs/dpl/boards/re/consent-dual-agency.pdf" rel="nofollow">if the agent acts as a dual agent</a>.<br/><br/>However, even is there is an existing agreement pay an agent a commission of fee upon close that is not your problem as long as you offer the seller no more than you are willing to pay. The price may reflect the seller's agreement, but as a buyer you need to focus on what the property is worth to you not what the seller "needs" to get out of the house to cover any professional. Tue, 12 Mar 2013 15:57:00 GMT http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ 2013-03-12T15:57:00Z So, what about my most basic ... http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ So, what about my most basic question, though?<br/>Is the seller required to disclose whether or not they are working with a compensated agent for the sale? &nbsp;(even if they do not disclose the nature or amount of the compensation agreement)<br/><br/>In practice, is it possible to hide this, or does the paperwork involved leading up to the sale make it effectively impossible to hide the existence of a compensated seller's broker? Tue, 12 Mar 2013 15:39:00 GMT http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ 2013-03-12T15:39:00Z The listing contract is an ... http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ The listing contract is an employment contract between the agent and the seller.&nbsp; The compensation may be percentage based, dollar based or a combination of the two.<br/><br/>The MLS simply identifies the amount of compensation that the seller is offering a buyers agent.&nbsp; It may not be an even split.&nbsp; There should be no expectation that the amount listed in the MLS is an even split.<br/><br/>In my board there are several Realtors who offer less than a 50% split to the buyers agent.<br/><br/>I know an agent in California who has a sliding scale commission rate.&nbsp; The more he gets for the house the higher his commission.&nbsp; If the house sells over asking he gets a bonus.<br/><br/>The employment contract between seller and agent is a private contract.&nbsp; As a buyers agent I do not have a right to ask to see it to confirm the exact amount of compensation.&nbsp; <br/><br/>The seller does not have to disclose to a buyer how much he is paying his agent.&nbsp; Disclosure of the listing agents compensation is not part of an agents duties to a buyer.<br/><br/>You asked about the code of ethics.&nbsp; Here is the address of the NAR code of Ethics for you information.<br/>http://www.realtor.org/mempolweb.nsf/pages/code<br/><br/> Tue, 12 Mar 2013 12:40:00 GMT http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ 2013-03-12T12:40:00Z 1. If your property is listed ... http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ <strong>1.</strong> If your property is listed in MLS, the MLS regulations require certain disclosures.<br/>Listing Broker does not need to disclose the amount of total negotiated commissions in its Listing Agreement, however, if an offer is made to co-operating brokers in MLS, then certain rules and disclosures <u>do apply</u>.<br/>Please visit the following link to check the MA <a rel="nofollow" href="http://mlspin.com/downloads/rules_regs/rules_regulations.pdf">MLSPIN regulations</a>: <br/><br/><strong>2.</strong> As for the buyers, most of the qualified ones are represented by brokers/agents, and, unless those buyers have an agreement to pay their broker's/agent's fee, their brokers/agents are less likely to show a property where very little or no compensation is offered.<br/><br/>&nbsp;&nbsp; Are there buyers out there that are seeking to deal directly with the seller, hoping to save a lot ?&nbsp; <strong>Of course there are !&nbsp;</strong> However, most FSBO sellers are more preoccupied calculating how much money the brokers will be making, then actually giving a sizable discount to the direct buyer.<br/><strong>3.</strong> You may list and sell your property yourself and pay <u>only 1/2 of the commission</u> ( 2.5% - 3% ) to the buyers' agents. <strong><em>We offer such a service</em></strong>.<br/><strong>Please check our</strong> <strong><a rel="nofollow" href="http://www.brokerking.com/linkspage.asp">Entry Only package</a></strong><br/><br/>&nbsp;&nbsp; In short, if you have an overpriced property in a not highly desirable neighborhood, your property is less likely to sell whether you offer a commission or not. You may want to think less about the buyers' perceptions and more about making your property more sellable.<br/>&nbsp;<br/>Regards,<br/>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <em>Alex Kupelian</em> Tue, 12 Mar 2013 06:29:00 GMT http://www.zillow.com/advice-thread/Are-sellers-required-to-disclose-agent-compensation-details-MA/482443/ 2013-03-12T06:29:00Z