Always Something New to Learn
Hello Members of HAR and Friends of my Blog! VARIABLE RATE COMMISSION...WHAT DOES IT MEAN? Almost everyone seems to understand what the term Commission means as it relates to the Real Estate Transaction. The opposite is true as it relates to a Variable Rate Commission. I hope this information helps explain what it is and how it relates to you and your Buyers and Sellers. Section 3.4 of the REALTOR Code of Ethics defines a Variable Rate Commission as follows: A listing in which one amount of commission is payable if the listing broker's firm is the procuring cause of sale and a different amount of commission is payable if the sale results from the efforts of the seller or a cooperating broker. The National Association of REALTORS Multiple Listing Policy & MRED Rules and Regulations requires listing brokers to disclose a Variable Rate Commission to potential cooperating brokers as soon as is practical. There is a field in the MRED MLS that must be filled in by the