Florida Real Estate Listing Agreements Loopholes

Examples of How Real Estate Forms Can Benefit the Brokerage

• Scenerio 1:
   The seller is a real estate agent. When asked who pays the buyer’s agent compensation, the answer is: the seller.

• Scenerio 2:
  The seller is an ordinary homeowner. The answer is: the listing brokerage pays the buyer’s agent.

• Where is the loophole? If the buyer chooses to go unrepresented to save money, the listing brokerage may retain compensation associated with both sides of the transaction.

• Who benefits? The brokerage may collect both sides of the deal, the buyer may save nothing, and the seller may effectively pay for the same transaction through compensation provisions they may not fully understand.

• A copy of the listing agreement and a video explaining how it works will be posted below.

• No Disclosure of Representation is just a perfect addition to this set-up. Don’t let buyers and sellers know about the brokerages advantages and their disadvantages.

• The last time i checked buyers and sellers are paying the compensation. Yet the system is set up to benefit brokerage starting with Presumption of Representation as a Transaction Broker,  no disclosure of representation & and easy double dipping on compensation by just providing a limited service

This is a classic example of how contractual provisions can create financial advantages for real estate professionals at the expense of consumers.

No Disclosure of Representation is just a perfect addition to this set-up. Don’t let buyers and sellers know about the brokerages advantages and their disadvatages,

Where is the ETHICS behind this system? You tell me.