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PostPosted: Wed Dec 29, 2010 8:00 pm 
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Hello everyone!

Here is my question....If I have an auction company in Pa., does anyone know if I can call realtors and ask if they would be willing to do a co-op? Meaning, if a realtor has a listing which is getting "stale" can I team up with them spliting the 6% commission...3% for me and 3% to the realtor/broker? If so what type of paperwork is needed for this type of transaction?

Thank you in advance,
James
LAC Auction


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PostPosted: Thu Dec 30, 2010 7:48 pm 
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Location: South Central Missouri
James,

I don't know about PA, but in Missouri the answer to your question is no. Real Estate Brokers are not permitted to pay any part of a commission to anyone other than another Real Estate Broker. However if an auctioneer has a property to sell, the auctioneer can pay a commission split to a broker.
Bottom line here is: realtors have an active lobbyist , auctioneers don't. In Missouri, anyway.

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PostPosted: Thu Dec 30, 2010 11:24 pm 
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I concur with Ed, as many states have similar laws that state, Real Estate Brokers are not permitted to pay any part of a commission to anyone other than another Real Estate Broker. I'm not sure about Missouri or PA, but many states also do not allow the auctioneer to pay commissions to a Real Estate Broker, either.

In the case of an auctioneer handling real estate, they are working for the owner and they are paid by the owner. By the same token, the owner may also employ a real estate agent and that individual would also be paid by the owner. In effect, it is the owner that pays the commissions to the Real Estate Broker, not the Auctioneer.

It may seem like it's only a technicality. However, if it is not specifically spelled out properly in the contract, there may be an auctioneer and a real estate broker facing some very stiff fines and possibly the loss of their license.

The professional thing to do, would be to spend the time reading the real estate laws in your state. You could also do what I did... I took the real estate courses and even got a license, although I had little desire to pursue the conventional real estate market, I definitely have the knowledge and know what can and can't be done in my state. At this time, my real estate license sits in an "inactive" status with the state, but I still get all the updates to the laws, so I am aware of any changes that may effect me in my auction business.

Jim Ford
Professional Auctioneer & Auction Marketing for the 21st Century

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PostPosted: Fri Dec 31, 2010 12:47 am 
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Thank you very much for both replies, I will do some more homework as I do not want to skate on thin ice! At the same token, if there are any auctioneers in Pa that could shed some light on the subject I would be greatful.

Thank you,
James
LAC auction


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