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PostPosted: Wed Sep 07, 2011 6:59 pm 
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I have 2 upcoming Real Estate Auctions and I thought my Broker and I were on the same page but I guess not.

I'm paid my commission by the buyer's premium. Generally 6% - 10% Depending on the estimated amount the property will sell for.

I'm in Iowa where you do not need a real estate license to sell real estate at Auction (or even an Auctioneer's License) but I'm under the impression that a realtor needs to be present for the open house and auction.

To get to the point, I informed my Broker who I just started using recently, that I feel a 50/50 split of my commission was just too much. I suggest a 70/30 Split as I was taught in Auction School. After all, I'm landing the contracts, i'm paying advertising out of my pocket and in general, I do more than he does.

We parted ways today, now I have an open house THIS Sunday Sept 11th and An Auction Sept 19th.

What should I do Besides getting my own brokers license? Hire an attorney for the paper work part? I've emailed a few brokers with no responses. Help :(

Help!


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PostPosted: Wed Sep 07, 2011 9:52 pm 
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While I'm not that familiar with Iowa real estate law, I did find the following:
http://coolice.legis.state.ia.us/Cool-I ... =83#543B.2
543B.7 ACTS EXCLUDED FROM PROVISIONS.
The provisions of this chapter shall not apply to the sale, exchange, purchase, rental, lease, or advertising of any real estate in any of the following cases:
5. The acts of an auctioneer in conducting a public sale or auction. The auctioneer's role must be limited to establishing the time, place, and method of an auction; advertising the auction including a brief description of the property for auction and the time and place for the auction; and crying the property at the auction. The auctioneer shall provide in any advertising the name and address of the real estate broker who is providing brokerage services for the transaction and the name of the real estate broker or attorney who is responsible for closing the sale of the property. The real estate broker providing brokerage services shall be present at the time of the auction and, if found to be in violation of this subsection, shall be subject to a civil penalty of two thousand five hundred dollars. If the auctioneer closes or attempts to close the sale of the property or otherwise engages in acts defined in sections 543B.3 and 543B.6, then the requirements of this chapter do apply to the auctioneer. If an investigation pursuant to this chapter reveals that an auctioneer has violated this subsection or has assumed to act in the capacity of a real estate broker or real estate salesperson, the real estate commission may issue a cease and desist order, and shall issue a warning letter notifying the auctioneer of the violation for the first offense, and impose a penalty of up to the greater of ten thousand dollars or ten percent of the real estate sales price for each subsequent violation.

It sounds to me like you have to have a real estate broker.
Maybe you should shop around for an auctioneer that is also licensed as a broker. They would understand the process a lot better.

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

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PostPosted: Wed Sep 07, 2011 11:31 pm 
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Thanks Jim


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PostPosted: Thu Sep 08, 2011 9:21 am 
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Location: SC
Search for auctioneers in Iowa on the NAA website. There are 4 that are AARE. Maybe they can help.

-Brandon Howe


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PostPosted: Thu Sep 08, 2011 11:35 pm 
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Location: Corbin KY
50/50 is absurd if you ask me, but that's just an opinion. It should be very easy to find a broker that will do a 70/30, or even an 80/20 considering the small amount of work it requires. If you plan on doing lots of real estate, or just get tired of giving your money away, get your brokers license!

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Adam Hill
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PostPosted: Fri Sep 09, 2011 1:13 am 
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My Broker and I have agreed on 60/40 for now. Thanks Everybody.


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PostPosted: Tue Dec 13, 2011 12:20 am 
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Each state has their own laws but in most states a broker is not required .

Usually all you need is a contract from the seller, an agreement with the buyer as well as their down payment and you simply have the buyer choose which title company they want to use.

In your contract you determine the closing date, downpayment amount, refund/no-refund your repsonsibility to inspect etc..

Contact your state Auctioneer Association to get the facts and maybe even a standard contract they support.

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PostPosted: Thu Dec 22, 2011 10:46 pm 
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I have conducted real estate auctions in over 40 states and while licensed in most, there are sometimes that I need a licensed RE agent in some states. I have never split commissions with an agent or broker but instead, I agree upon a flat fee for the required services. They get paid to be the broker of record and come to the auction if required.

I guess it depends on whether you want to be able to pay nothing if the property doesn't sell or keep 99% + of the commission if it does. I have never had a problem finding a broker willing to work for a smaller flat fee and they are easier to find with the market like it is today.

Mike Fisher


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