Thread: Attention Realtors: Beware of Commission Fraud! New Game Sweeps our area!

It seems that this is the year of trickery! Two weeks ago I reported on an Agent who sent out bogus flyer's announcing a bonus of $4000,only to be told that the seller refuses to acknowledge the bonus!
They claimed it wasn`t mentioned on the MLS, therefore the seller is disputing the bonus! Hard to believe the Broker is actually taking this stance.
This time I`ve run into a new game! On the remarks section of our local MLS another agent decides to offer a 3.5%bonus without properly placing it where it belongs.
It clearly states:"OWNERS MOTIVATED TO MOVE - SO BRING THE OFFERS FOR HIGHER COMMISSION ! POTENTIAL FOR MORE THAN 3.5% COMMISSION DEPENDING ON DEAL BROUGHT!"
That`s all well he and good. Maybe the agents intentions are honest and they will compensate,but clearly, they don`t have too! Which seems to be the "New Trend".
It mentions "The owner is clearly motivated and will pay a higher commission" depending on the right deal.
Again, this clearly leads you to comprehend that as a Buyer`s Agent this is your commission, right? Wrong!
This is once again a clear and obvious trick to an unsuspecting agent!
A closer look at the actual MLS states "COBA: 2% COTB: 2% CONR: 2%.
Therefore, actual commission the seller agreed upon is 2%,not the 3.5%! The seller doesn`t have to compensate the B/A any additional bonus!
We can debate with the seller and S/A,but at the end of the day, the title company will ask to see the "Original Listing Agreement" verify the commission reads 2% and case closed!
What`s going on in our industry!? How can this be allowed by our local boards or NAR?
Do we have to police ourselves and scrutinize "How a bonus is to be paid?"
No matter what, this type of inducements are meaningless and can be very hard to enforce!
Some may make a case that the S/A has a responsibility to compensate the B/A, and fair is fair, others`s may state "Let the B/A beware", again, in this case if the 3.5% isn`t properly mentioned the seller can swim away without paying anything more than originally promised.
Back to my article written on 2/15/07,Entitled "Realtor attempts to wiggle out of a $4000 bonus"
I`m awaiting for this transaction to close. We have already notified the Broker and S/A in regards to what I consider "Fraudulent Advertising".
We`ve sent a certified letter to the Broker, as of today, we still haven`t received a response. The Broker claims his agent isn`t to blame, the seller is!
Truthfully, excluding Professionalism and Ethics what leg do I have to stand on? I don`t want my Buyer involved in this nonsense.
To start placing these Bonuses on the MLS places our profession in murky waters!
Without specific terms as to compensating these type of bonus, there really isn`t much an agent can do except lodge a formal complaint.
I`m curious if this type of nonsense is going on in the rest of the country? Are you as Realtors experiencing the same problems?