In this lovely bit of FU that swirls the world I found out today when a client called me and they asked if I could reduce my commission $5,000 because the builder's salesperson said all I would have to do is issue a letter stating it was ok. This is after she mentioned it to me once and I told her it would never happen. I am so arggghhh right now but I have an ace up my sleeve. When it comes to issues like this my broker is a pit bull and I'm going on a dog walk the day I go in to sign the commission agreement with her.

By the way I've read that commission rebates are illegal in the state of NY. Is there any recourse with that?

Recourse on the suggestion by the salesperson?

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No with her suggesting a commission rebate when it's illegal in NY. It also seems to me that she's violating her fiduciary duties to the builder and the agreement I have with my client by suggesting how they can lower the price of her product.

i would tear into that builder, that builder would never see me again. But in texas alot of the reps know me real well. So i wouldnt have that problem.

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Stand your ground. Do what's fair (and legal) and be happy with yourself. I'm not saying give anything back - but if you can help your client a bit why not?

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Drew T. Nichols
Greenville SC Real Estate

I am on great terms with all of the national builder reps in the area including the sales manager for the builder who I'm having this problem with but this sales rep is a real piece of work. I'm not going to give commission back because I have a high commission split 60/40 majority to me and I've brought these people out on tour three times totally over 300 miles of driving and I've met with them at least six times total in addition to the time spent communicating with them by email and answering all of their questions. I even walked into one builder's sales office and gave them incentives for another builder because they are so difficult to get ahold of and then they have the nerve to ask me to cut my commission that they aren't even paying because the builder's sales rep tells them it's an option? I'd quit this business before I gave them a cent.

Yeah I imagine that is a no brainer. Sounds like you more than earned your keep and this salesperson is just being a difficult person to work with.

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Drew T. Nichols
Greenville SC Real Estate

I had a lawyer do this to me once with a client whom I reffered to him, I called the lawyer and stated that I had heard that he recommend I reduce my commission by nearly 50% and I was about to call the client and tell her I would be happy to but only if the lawyer would be willing to do his job for free since I would be kicking in$ 2500.00 I wouldn't think it would be much for the lawyer who does very well for himself to kick in $1000.00 of there not so hard earned money. Needless to say the lawyer was furious and the client wanted the lawyer to kick back. I later told the client I would get them a closing gift at home depot for $300 but that was all my big bad mean broker would allow, but the lawyer has no broker to clear it with so don't take no for an answer. The lawyer would not cave so the client took the deal to a different lawyer. I see the lawyer once and awhile and always say
" how the hell are you" with a great big smile on my face.

I understand why you are upset, but the salesperson did not violate the law you quoted. That refers to a commission rebate paid out of what you earn. In this case, the salesperson suggested they try to REDUCE your commission, which is legal.

As far as the salesperson's fiduciary duty to the builder, he wasn't cutting into the builder's pocket but yours.

The end result is this is the danger of putting our clients into the other agent's hands...a danger that in this case could not be avoided.

I think the best solution would to have had your broker talk to that salesperson's supervisor. The builder is not benefited by gaining a bad reputation among agents.

Southern Investor

I may not be a realtor but it sounds to me like you earned your cash ^^^^