Agent's Pay Day
Q - Before we wrote the offer for our home, we had to sign a document about how much money the agent was going to receive. We didn't get a copy of it but could you tell us more about it?
A - What you are referring to is called a "Disclosure of Remuneration". This document was introduced a few years ago so that the buyer would be aware if the brokerage or the agent has any vested interest in the transaction. All money and gifts/rewards which may be received are to be disclosed on this document.
For example, the document spells out in percentage or actual dollars the compensation the brokerage will earn on completion of the transaction. This document also requires the disclosure of any rewards or gifts which the brokerage/agent may receive for referring the buyer to a particular service. Sometimes mortgage companies, inspection companies and other service providers provide rewards for referrals from real estate agents. The buyer is entitled to this information.
Such full disclosure enables the buyer to see all compensation/rewards that the brokerage/agent may receive and from whom. The buyer then has a full picture of the surrounding elements of the transaction.
It is appropriate to provide a client with copies of all documents which have been signed during the buying process. If you have not received them -- ask for them.