Frequently Answered Flat Fee MLS Questions
The MLS (“Multiple Listing Service”) is a computerized database that enables realtors to display real time real property listing information, so that authorized participants, as well as the public, can view and evaluate listings. The MLS serves as a means by which authorized participants (listing brokers representing sellers) make blanket unilateral offers of cooperation and compensation to other authorized participants (co-operating brokers representing buyers). MLS participants actively show and sell homes that are listed by other participants (member realtors). This process provides the basis upon which the Broker, who is working with the buyer and referred to as the Cooperating Broker, earns a commission. A cooperating broker’s entitlement to compensation is determined by the broker’s performance as procuring cause of sale or lease. 75% of all properties sold are sold through the MLS.
Paying a flat fee for an MLS listing means more equity in your pocket! All the advantages associated with an MLS listing will be available to you at a fraction of the cost. As a result, there will be no additional listing fees owed specifically to Brokerless. Typically, those fees run from 2.5% to 3.5% of the selling price, and are normally paid to the listing broker at closing. Fees vary by State, County, and Broker. Consumers who choose a limited service option can realize savings of up to thousands of dollars.
The flat fee that you pay replaces the much higher listing fee, usually 2.5% to 3.5% of the sales price, that you otherwise would pay if you were using a full service Listing Broker in your local area. As a result, you will not pay additional fees that are typically based on the contract selling price.You will, however, be required to pay a cooperating brokerage fee, usually between 1.5 to 3.5 percent, stated as a percentage of the total purchase price. The title agent conducting your closing will be be instructed, pursuant to your purchase and sales agreement (or listing agreement), to disburse any fees due to the Cooperating Broker.
An exclusive agency listing agreement is the most commonly utilized instrument when using a discount broker. The owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner’s stated terms, for a commission. The owner reserves the right to sell without paying a commission if he or she sells to a prospect who has not been introduced or claimed by a specific broker. Most commonly used with Flat fee MLS listings.
This essentially reduces contractual risks between the seller and the listing broker, since the seller is free to sell (or otherwise transfer title to the real property) to any person procured by the seller (i.e. someone who is not represented by a “Buyer’s Broker”) without having to pay a brokerage commission or penalty. The net effect is to limit brokerage services provided, thereby giving the seller greater control and flexibility at significantly reduced costs.
Yes. In all cases, where the property is “listed” in the MLS for a flat fee, the seller must offer compensation to a “Buyer’s Agent”, typically 2% to 3.5% of the selling price. This fee is paid to the cooperating broker (or agent) for producing a bidder or purchaser, when (and if) the transaction closes. As previously stated, you will not be required to pay a commission to a buyer’s agent if you sell to a buyer (or prospect) who has not been introduced or claimed by a specific broker.
Yes. However, listing agreements must have a definite expiration date. Therefore, additional paperwork will be required to extend the original period contemplated in the agreement.
You will be in control all showings, buyer inquiries and negotiations. The listing broker may assist with paperwork.
The duties of a real estate broker will strictly depend on the laws of the state in which the property is located. If your state does not impose minimum service requirements, then the duties will be limited to the following:
As a real estate licensee who has no brokerage relationship with you, (insert name of Real Estate Entity and its Associates) owe to you the following duties:
1. Dealing honestly and fairly;
2. Disclosing all known facts that materially affect the value of residential real property which are not readily observable to the buyer.
3. Accounting for all funds entrusted to the licensee.
AfBA stands for Affiliated Business Arrangement. This is to give you notice that [referring party] has a business relationship with [settlement services providers(s)]. [Describe the nature of the relationship between the referring party and the providers(s), including percentage of ownership interest, if applicable.] Because of this relationship, this referral may provide [referring party] a financial or other benefit.
MLS Listings are updated within 24 hours of any changes being made and are available for public viewing on www.realtor.com and your local MLS 24/7.
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Every month millions of unique visitors searching Realtor.com will be able to view your listing. Realtor.com sends out numerous feeds to other major internet sites that display MLS listings as well. Learn why Realtor.com is the busiest site on the web.
According to HUD, yes, real estate agents may rebate a portion of the agent’s commission to the borrower in a real estate transaction. The rebate must be listed as a credit on page 1 of the HUD-1 in Lines 204-209 and the name of the party giving the credit must be identified. Real estate agent or broker commission rebates to borrowers do not violate Section 8 of RESPA as long as no part of the commission rebate is tied to a referral of business.
No, according to HUD, payments pursuant to cooperative brokerage agreements between real estate brokers are not a violation of RESPA Section 8. See Sec. 2607(c)(3). See FAQS About RESPA For Industry
(a) No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.
(b) Any seller who violates the provisions of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.
According to HUD, however, section 9 of RESPA does not apply if the seller pays all charges associated with insuring the title to the real property.
The seller has a duty to Disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer
The executory period is the period between contract to closing. During this period, the buyer will perform a number of due diligent inquiries, which will include, among other things, determining marketability of title and a physical property inspection. Contractual contingencies and time periods are legally binding to both seller and buyer during this period.
Brokerless is a licensed real estate broker who understands the importance of this period. We are committed to providing you transaction coordinating services for a small fee to make the closing of your real estate transaction a reality.
Most importantly, it pertains to residential dwellings built prior to 1978. The act requires that Before ratification of a contract for housing sale or lease, sellers and landlords must comply with certain HUD requirement.
Lead Disclosure Rule and EPA Information Pamphlet
At closing, the parties will execute a number of documents, prepared by their closing agent, including the deed (a.k.a the instrument of conveyance). The deed is a legal instrument used to convey certain rights an individual has to property to someone else. Deeds come in various forms. The most commonly used deed is the warranty deed. With this type of conveyance, the grantor (seller) fully warrants that the title to the real property is free and clear of all liens and encumbrances and will defend against the lawful claims of all persons whomsoever.
There is no legal requirement to hire an attorney. However, many customers will hire a real-estate lawyer to protect their interests. In most regions of the country, a title company (agency) can handle every aspect of a real estate transaction, including the preparation of documentation. A real estate lawyer can act as both your attorney and title agent (i.e. one who issues title insurance policies and conducts closings).
Real estate transactions involving federally related mortgage loans involve three basic categories of services and related charges in order to close escrow. These charges appear on the Uniform Settlement Statement (as defined in 12 U.S.C. § 2603) and include:
(1) title insurance charges in connection with establishing and transferring ownership (i.e., title search and examination fees, premiums charged in connection with issuing a lender’s and/or owners title insurance policy (including endorsements), and the costs associated with conducting the closing)
(2) amounts paid to the city and/or state and/or local governments for establishing and transferring ownership (i.e., documentary stamp and intangible taxes on both the note and mortgage, including all fees associated with recording the mortgagee’s interest in the property), and
(3) fees associated with originating a new loan (i.e., survey fees, appraisal fees, tax service fees, credit check fees, loan document preparation fees, notary charges, loan origination fees, loan commitment fees, loan processing fees, hazard insurance fees, flood certification fees, interest prepayments, and lender inspection fees). The majority of these services, however, will not be provided and performed until closing.
Who pays for title insurance (or any portion thereof, including related title services) usually depends on the location (i.e., county) of the real property. Although the allocation of costs involved in any real estate transaction are negotiable, local custom strongly influences which party, buyer or seller, pays for both the owners and lenders title insurance policy, including related charges. See Florida Title Insurance Rates
