Since Texas is a "Minimum Services" state, An ACRE will have different compensation menu choices than in other states. This effects our marketing and promotion. Since we are subject to "Minimum services' whenever we sign our name, it is more difficult to differentiate our brokerage firm.
There are five states which have laws regarding “Minimum Service Standards”
Meaning that If I sign a listing agreement, I have a minimum fiduciary responsibility
This was passed because some brokers listed a property on MLS for $500 and did nothing else.
Brokers have more responsibility to the seller
If I sign my brokerage name to a listing agreement, then more responsibility means more liability and more exposure, therefore higher fees and more tasks.
It is wonderful to have "The Real Estate Consulting Institute" as a platform which offers a variety of benefits. It lets us help our fellow ACREs.
Sometimes it helps to know more from the federal and state governments.
We need to know state laws concerning fiduciary duty, miminum service, commission rebates and required disclosures
Competition and Real Estate
https://www.justice.gov/atr/public/real_estate/index.html
The Importance of Competition in Real Estate to Consumers
Buying or selling a home is the largest financial transaction most Americans will ever undertake. The median priced home cost $184,334* in 2009, and the median commission paid to real estate brokers came to $9,733**. Overall, Americans paid nearly $60 billion for brokerage services.
Home prices and commissions over time
Real estate licensee cannot draft documents after Buyer located
A real estate licensee has a friend who has agreed to buy a home from a FSBO Seller. The friend wants the real estate licensee to draft the purchase contract and other documents for a fee of $300. Can the real estate licensee draft these documents and charge the friend $300?
Answer:
No. Under Article 26 of the Arizona Constitution a real estate licensee acting as a broker or agent in the transaction can draft documents incidental to the sale or leasing of real property. The real estate licensee, however, cannot charge for the drafting of these documents.
Arizona REALTOR® Digest November 2004
Here is mumbo jumbo from Feb 2011 meeting of Texas Real Estate Commission. Please help me understand this (this is all there is).
????
Rules adopted that the meeting Feb 14, 2011 Commission Meeting
535.154 Advertising
535.154 (m)
An advertisement containing an offer to rebate a portion of a licensee’s commission must disclose that payment of the rebate is subject to the consent of the party the licensee represents in the transaction.
Hmmmm ???
Does the California Department of Real Estate allow our model? Do they look at the payment for services as an "ADVANCE FEE"?
I am eager to get started using my new found business model but am confused about what forms to use for a FSBO who only wants MLS and negotiation or even a seller who wants limited items. Given that I will enter something in the MLS (if that is what they want), I only have the form covering the exclusive right to sell.
I hope the question doesn't seem too silly but any help would be appreciated.
Thanks, Brenda