Expert: Lori Frankfort - 7/4/2008

Question
Is it legal or ethical for an agent who's listed a property for 6% to keep 3.5% and offer 2.5 or less to the selling agent? Is this something the broker of the office would promote or condone?

Answer
It is legal and ethical as long as 1) The Seller agreed, and 2) it's in the listing paperwork.

The same is true for the opposite... many times listing agents reduce their commission but offer a full commission to the buyer's agent.  As long as they're honoring the commission amount listed in the MLS it's okay.  I personally would never do it, and I consider it to be inappropriate, but it is allowed.

Best,
Lori