Friday, March 25, 2011
How can I reflect buyer broker commission in MRIS when it's a short sale?
MRIS compliance will not allow you to indicate that a third party will determine compensation for cooperating brokers based on negotiated contract terms, therefore; you must put in a coop commission amount you will honor - no matter the net commission agreed to by the bank. This is exceedingly challenging, of course, because you do not know what the bank will approve, so you may be left with very little commission as a listing broker if the bank hits the commission hard. My suggestion is to offer 2 to 2.5% because in most cases the commission doesn't move lower than 5% during bank negotiations
Monday, March 14, 2011
There are multiple sellers/buyers in this deal in multiple locations ...
Question: There are multiple sellers and buyers in this deal in multiple locations - can I have some initials on one contract, others on another contract, and then put them all together as one ratified contract?
Answer: "Execution in Counterparts" is generally not allowed in most of our sales contract documents and would therefore not be considered "ratified." Additionally, lenders and title companies will most likely not accept this form of documentation. You might use this as a temporary bridge to bring all parties together, but understand, the contract is not officially ratified until all the parties sign one document. Use an electronic signature system like Docusign to help multiple parties in multiple locations sign the same document.
Answer: "Execution in Counterparts" is generally not allowed in most of our sales contract documents and would therefore not be considered "ratified." Additionally, lenders and title companies will most likely not accept this form of documentation. You might use this as a temporary bridge to bring all parties together, but understand, the contract is not officially ratified until all the parties sign one document. Use an electronic signature system like Docusign to help multiple parties in multiple locations sign the same document.
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