{"id":28250,"date":"2024-09-18T00:31:55","date_gmt":"2024-09-18T05:31:55","guid":{"rendered":"https:\/\/pintailcos.com\/web\/faqs-compensation-when-working-with-builders\/"},"modified":"2024-09-18T00:31:55","modified_gmt":"2024-09-18T05:31:55","slug":"faqs-compensation-when-working-with-builders","status":"publish","type":"post","link":"https:\/\/pintailcos.com\/web\/faqs-compensation-when-working-with-builders\/","title":{"rendered":"FAQs: Compensation When Working With Builders"},"content":{"rendered":"The Texas REALTORS\u00ae Legal Hotline is receiving many calls about builders and compensation under the updated NAR MLS rules. Download these questions and answers as a PDF.\u00a0\nMy buyer client is purchasing a new home from a builder who is demanding to see our buyer representation agreement to verify the amount of compensation my client has authorized me to receive. Do I or the buyer have to share the agreement?\nNo. It is inappropriate for a builder\u2014or any listing broker or seller\u2014to demand to see brokers\u2019 confidential agreements with their clients. The buyer\/tenant representation agreement is a confidential document between the buyer and that buyer\u2019s broker. Under NAR policies, a buyer\u2019s broker is not required to disclose to the builder\u2014or any listing broker or seller\u2014any information in the buyer\u2019s representation agreement.\nIf the compensation the builder is paying the buyer\u2019s broker is more than what is stated in the buyer representation agreement, it is up to the buyer\u2019s broker to amend the representation agreement with the buyer or make other arrangements on how to account for any overage.\nIf a builder refuses to sign either a compensation agreement or sales contract without being provided the buyer\u2019s representation agreement, the buyer\u2019s agent should discuss the situation with the buyers. The buyers have several options:\n\nThey can give permission to disclose the terms of the buyer\u2019s representation agreement.\nThey may choose to not submit an offer on that property.\nThey may choose to submit an offer without providing a copy of the buyer representation agreement to begin negotiations.\n\nUnder NAR MLS rules, are buyer\u2019s agents able to receive bonuses from builders?\nYes, a buyer\u2019s agent can receive a bonus if the agent discloses the specific amount of bonus offered to the agent and receives authorization from the buyer to receive that amount. The agent can use the Texas REALTORS\u00ae Amendment to Buyer\/Tenant Representation Agreement (TXR 1505) to specify the amount of the bonus the agent will receive and obtain the buyer\u2019s authorization. This form requires the bonus to be specific to a particular property. Since the bonus is being paid by the builder, the buyer is not obligated to pay the bonus. All compensation paid to an agent must be paid to that agent\u2019s broker except with the written consent of the agent\u2019s broker.","protected":false},"excerpt":{"rendered":"<p>The Texas REALTORS\u00ae Legal Hotline is receiving many calls about builders and compensation under the updated NAR MLS rules. Download these questions and answers as a PDF.\u00a0 My buyer client is purchasing a new home from a builder who is demanding to see our buyer representation agreement to verify the amount of compensation my client [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[108],"tags":[],"class_list":["post-28250","post","type-post","status-publish","format-standard","hentry","category-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/posts\/28250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/comments?post=28250"}],"version-history":[{"count":0,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/posts\/28250\/revisions"}],"wp:attachment":[{"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/media?parent=28250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/categories?post=28250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pintailcos.com\/web\/wp-json\/wp\/v2\/tags?post=28250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}