This is an excellent question:<\/p>\n
Do buyer’s agents have to disclose ALL compensation he receives from all sources to his client? It would be important to know who’s filling his lunch sack. Example: Builder pays a bonus above the commission listed in the MLS to the buyer’s agent if his client purchases.<\/p><\/blockquote>\n
What does a buyer’s agent have to disclose about his compensation? In Arizona, the answer is crystal clear:<\/p>\n
It depends.<\/p>\n
A buyer’s agent is not required by law to disclose the amount of the co-broke commission or finder’s fee offered by the real estate broker of the seller. On the other hand, both RESPA and state law require the disclosure of bonuses, rebates, referral fees or any other sort of non-commission compensation.<\/p>\n
This is ARS R4-28-1101-G:<\/p>\n
A salesperson or broker shall not accept any compensation, including rebate or other consideration, directly or indirectly, for any goods or services provided to a person if the goods or services are related to or result from a real estate transaction, without that person’s prior written acknowledgment of the compensation. This prohibition does not apply to compensation paid to a broker by a broker who represents a party in the transaction.<\/p><\/blockquote>\n
There are a lot of things that reek about this, in my professional opinion. First, a bonus is just an attempt to induce a buyer’s agent to betray his fiduciary duty to the buyer<\/a>. But second, a lot of bonuses are being paid right now in the form of commission<\/i>. If I take you out to buy a new home tomorrow, the builder will pay me at least 6% of the purchase price, all of it of your money — and I do not<\/i> have to disclose this to you.<\/p>\n
In fact, all commissions and fees paid will be disclosed on the HUD-1 form — which you will see for the very first time at Close of Escrow. Wonderful…<\/p>\n
My take on the subject<\/a>: Buyers need to learn the five little words that sellers mastered long ago: “How much do you charge?” The agent may not be required by law<\/i> to disclose commissions, but you can condition your working with that Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
This is an excellent question: Do buyer’s agents have to disclose ALL compensation he receives from all sources to his client? It would be important to know who’s filling his lunch sack. Example: Builder pays a bonus above the commission listed in the MLS to the buyer’s agent if his client purchases. What does a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,6,5],"tags":[],"class_list":{"0":"post-336","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ask-the-broker","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":296,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/296\/securing-the-home-buyers-place-at-the-table-how-two-simple-reforms-can-finally-result-in-a-full-uncompromised-form-of-buyer-representation\/","url_meta":{"origin":336,"position":0},"title":"Securing the home-buyer’s place at the table: How two simple reforms can finally result in a full, uncompromised form of buyer representation . . .","author":"Greg Swann","date":"September 6, 2006","format":false,"excerpt":"Executive summary: This is long, and it's written (I hope!) for ordinary people, not real estate professionals. But I want for real estate professionals to be aware of this argument, because I think it solves several of the knottier problems affecting our industry. Here's a quick summary of the essay:Buyers\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1283,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1283\/who-pays-the-buyers-agent-once-weve-divorced-the-commissions-we-can-stop-worrying-about-it\/","url_meta":{"origin":336,"position":1},"title":"Who pays the buyer’s agent? Once we’ve divorced the commissions, we can stop worrying about it","author":"Greg Swann","date":"April 9, 2007","format":false,"excerpt":"Joke Number one: Q: If you came upon the Buddha in the guise of a hot dog vendor, what should you say? A: Make me one with everything. Joke number two: Q: Top Drawer Listing Agent, why do you charge a 7% commission to list a home for sale? A:\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":368,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/368\/more-buyer-agency-email-the-quality-of-representation-is-not-strained-by-full-disclosure\/","url_meta":{"origin":336,"position":2},"title":"More buyer agency email: The quality of representation is not strained — by full disclosure . . .","author":"Greg Swann","date":"September 22, 2006","format":false,"excerpt":"No hostile phone calls today, which is not usually the case. But here is another email from another testy real estate broker. For what it's worth, I think these brokers deserve credit for standing up for their opinions, rather than hiding behind anonymous phone calls. But: I think the argument\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":555,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/555\/defining-the-divorced-commission-a-short-hand-term-for-understanding-alternative-real-estate-compensation-models\/","url_meta":{"origin":336,"position":3},"title":"Defining the Divorced Commission: A short-hand term for understanding alternative real estate compensation models . . .","author":"Greg Swann","date":"October 19, 2006","format":false,"excerpt":"I just spent a very informative hour on the phone with Jeff Brown, and I want to summarize what I took away from our conversation. First, Jeff has a very different understanding of the term \"co-broke\" compared to the way it is used in Arizona. When we went to essentially\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/576\/learning-to-negotiate-the-buyers-agents-commission\/","url_meta":{"origin":336,"position":4},"title":"Learning to negotiate the buyer’s agent’s commission . . .","author":"Greg Swann","date":"October 27, 2006","format":false,"excerpt":"From my column in today's Arizona Republic, a familiar theme. The permanently linked version uses a somewhat longer version of the text. \u00a0Negotiate agent commission In past weeks, we talked about using the simple question \"How much do you charge?\" to negotiate a more reasonable buyer's agent commission. Buyers traditionally\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2179,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2179\/a-consumers-guide-to-the-divorced-real-estate-commission-why-buyers-and-sellers-each-paying-for-their-own-representation-is-the-most-significant-reform-that-can-be-made-today-in-residential-real-estat\/","url_meta":{"origin":336,"position":5},"title":"A consumer’s guide to the divorced real estate commission: Why buyers and sellers each paying for their own representation is the most significant reform that can be made today in residential real estate","author":"Greg Swann","date":"November 7, 2007","format":false,"excerpt":"Part I: How we got into this mess in the first place Can we be straight with each other? I'm not a soft and subtle kind of guy, and my working assumption is that you are sick to death of being hustled -- handled -- lied to. We yammer all\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=336"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/336\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}