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Writer's picturemelissa-gilbert

August 2024 Newsletter: Assisting All Agents

Updated: Aug 15





What sets us apart is attention to detail. Not only do we pay attention to the details of your contract, but we aggregate and analyze the data from hundreds of contracts. The resulting information gives us insight into market trends, which we delight in passing along to you.

 



GAR Form of the Month

F-259 Broker Compensation Agreement Exhibit

I've attended several mid-year form change classes, and here are my key takeaways about the new form:

  • When to Use F259: "THIS AGREEMENT SHOULD NOT BE USED IF THE BROKER(S) COMPENSATION AND THE PARTY OR BROKER PAYING IT HAVE ALREADY BEEN AGREED TO IN A SEPARATE WRITTEN AGREEMENT AND IS NOT BEING MODIFIED."

    • In my classes, instructors emphasized that if the compensation terms in the Buyer Brokerage Agreement, Pre-Showing Compensation Agreement, or Seller Brokerage Agreement are not changing with the current offer, this form is not necessary.

    • Remember, there are two things to consider. The payment amount. And who is paying it? (Seller to Seller broker to Buyer broker; Seller directly to Buyer broker; Buyer to Buyer Broker; Some combination of these)


  • Effect of F259:

    • If agreed to, the terms in F259 amend the Buyer Brokerage Engagement and/or Seller Brokerage Engagement Agreements for this specific contract only. It also replaces the F258 Pre-Showing Compensation Agreement.

    • Before using a Counter Offer, make sure you understand the form (and counter offers) fully. Check with your broker!

  • Modifying or adding F259:

    • If F259 needs to be changed or corrected, you'll need to use an Amendment to Agreement. If F259 isn't listed as an exhibit, you'll need to add it via an Amendment to Agreement.

  • When F255 (Instructions to Closing Attorney) is Not Needed:

    • If F259 is included as an exhibit and neither broker needs to add rebates or admin fees, then F255 (Instructions to Closing Attorney) is not required.

    • Note: If a broker needs to include "Further Directions to Closing Attorney," they should create an F255 and include the following stipulation (provided by Campbell & Brannon's class):

"In the event of conflicts or inconsistencies as to Compensation in the Instructions to Closing Attorney and F259, the terms of F259 shall control over the Compensation herein."


In all our classes, we've been strongly advised to carefully read these documents, as they outline how brokers and their licensees will be compensated for their work. Filling them out incorrectly could unintentionally wipe out your earnings.


Note: The information provided in this newsletter is for general informational purposes only and should not be construed as legal or brokerage advice.





SS 636 SCHOOL DISTRICT VERIFICATION CONTINGENCY

Notwithstanding any other provision in this Agreement to the contrary, if Buyer determines that Property is in a school district other

than ______________________ Elementary School, _______________________ Middle School, and ______________________High School, Buyer shall have the right to terminate this Agreement without penalty upon written notice to Seller within _____ daysfrom the Binding Agreement Date.




Monday, September 2, 2024

Labor Day


Monday, October 14, 2024

Columbus Day


Monday, November 11, 2024

Veterans Day


Thursday, November 28, 2024

Thanksgiving Day

(Note : Most attorneys and RHRE also close Friday Nov 29, which is a state, not federal holiday)



Using Google Drive to easily share Compensation Agreements

If the Seller wants to advertise compensation in advance of showings, agents can easily use Google Drive to hold any pre-filled, compensation forms, such as the GAR F258 Pre-showing Compensation Agreement or the GAR F259 Broker Compensation Agreement Exhibit. Reminder: These forms cannot be uploaded to the MLS or Showing Time after August 17th.

(If the video is not showing up on your phone, click this link to watch it. https://www.loom.com/share/1c4d5832bacc4a068875cf5c9dbfaeb0?sid=e0bc4315-31f9-4be8-b214-9c0816b3258d)



Interested in this expert's advice on the NAR Settlement? He says that to protect yourself from future lawsuits, you should stop sharing compensation.



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