THE REAL ESTATE DOWN PAYMENT / DEPOSIT :
For a broker to receive money as a down payment or deposit for a property he is listing for sale, he must have been authorized to it in writing by the owner and have an exclusive authorization to sell or a purchase option on the property ; but , in any case, the sales conditions of the purchase agreement to be signed must be equal to or better than the authorization or the option given by the owner . How ever the broker is obliged to immediately inform his client seller that he received money on his behalf .
Commissions will always be calculated on the price indicated in the brokerage agree ment or as amended in writing , however it will ultimately be calculated on the actual sale price .
It is strictly forbidden for a broker to charge commission to both parties ( buyer and seller ) unless there is a written authorization to the contrary or in the event of a barter or exchange , in which cases the broker may charge commission to both parties. In the case of an exchange, the broker will not charge commission to the client buyer on the property that is given as part payment if it was not on the market for sale, unless agreed otherwise in writing .
SPECIAL SITUATIONS : BREACH OF A SALE OPTION :
If “buyer client” withdraws from negotiations in which he has paid a ” deposit / earnest money ” to the owner, the broker is entitled to fifty percent of that amount or to the agreed commission, which ever is lower. In any case, the broker may also agree with the owner to a higher or lower percentage.
WHEN A FORMAL NEGOTIATION BREAKS DOWN
For causes imputable to the owner, the broker shall be entitled to the commission agreed on the price set in the sale negotiating document .
PROTECTION OF REPORTED CLIENT BUYER :
The owner of the property must pay the broker’s commission if a client reported in writing decides to purchase within twelve months after the expiration of the ” sale authorization ” , un less the parties have agreed to a longer period.
C – Commission on the sale of a property :
-The broker will agree beforehand with his client owner to the commission on the sale, which will be mentioned in the contract .
-If the commission agreement cannot be evidenced by reliable means and if an agreement cannot be reached between the parties , the commission will be determined by the ” use and custom ” of the trade.
-The broker’s commission is subject by law to a 13 % sales tax . It is against the law to evade it . It must be reported and canceled every month with the Sales Tax Payment Form and within the deadlines indicated by law.
-Overpricing a property to a client buyer is a hoax and is considered fraud . It is punished by law .
D – Commission as intermediary :
-When a broker or group of brokers merely put the seller’s broker in contact with the buyer’s broker , and in the absence of a written agreement to the contrary , their referral fee will be twenty percent of the total commission on the deal . In the case of third parties outside the profession, the referral fee will no more than ten percent of the broker’s commission to whom the client was referred.
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