HELPING BUYER BROKERS
WHO ARE WORKING ON COMPLEX TRANSACTIONS
As attorney and broker, I can charge buyer, seller or broker by the hour. I don’t like to keep track of my time by the tenth of a minute, and most clients do not like getting such bills.
I prefer to work for a flat fee payable at closing. I prefer to work as a broker. I get paid better, and so I can afford to put more time into inspecting every aspect of the transaction, heading off trouble instead of trying to get clients out of trouble.
Rather than compete with other brokers, I prefer to co-broker with them. They take care of the yard signs and open houses. I take care of all the complex paperwork.
This is the co-brokerage listing agreement I like to use:
BUYER BROKER CO-BROKER ADDENDUM TO
BUYER BROKER AGREEMENT
Parties to This Agreement
A. Buyer: ________________________________________________________
B. Primary Buyer Broker: ________________________________________
Contact information: __________________________________________
Associated with _________________________ (real estate office)
C. Ancillary Buyer Co-Broker and Attorney: James Robert Deal, DOL 27330, NWMLS 90655, Keller Williams Realty Everett, 1000 SE Everett Mall Way #201, Everett WA 98208, Office 425-212-2007, Home Office Direct Line 425-774-6611, Cell and Text Line 425-670-1405, email: James@JamesDeal.com, WSBA 8103. See: www.WashingtonAttorneyBroker.com/Helping-Buyers.
Buyer Broker Co-Brokerage Addendum: Summary
Ideally, it is best to consult with an attorney when one is buying property. Most buyers do not do that, or they wait until they are in legal deep water. A better way to get attorney review is for the Primary Buyer Broker to co-broker with another broker who is also an experience real estate lawyer. That describes me, James Robert Deal.
Under this Buyer Broker Co–Brokerage Addendum, I will co-broker with the Primary Buyer Broker. I will provide both legal and real estate services. I will assist both the Buyer and the Primary Buyer Broker. I will take no payment until closing. If there is no closing, there will be no fee. This Buyer Co-Brokerage Listing Addendum is wordy, but there are reasons for that. This is both a contract and an explanation as to why and when the Buyer and Primary Buyer Broker should use this Buyer Co-Brokerage Addendum and bring me in as a buyer co-broker.
Examples – When You Would Utilize This Buyer Broker Co-Brokerage Agreement
Example: Buyer and buyer broker should use this agreement when the transaction clearly involves legal issues. Attorneys are expensive, and so buyers are reluctant to utilize their services. When buyers engage an attorney, they often do so too late in the process, when the damage is already done. Buyers often select attorneys who do not understand broker customs and rules. To be most effective as a real estate transactional attorney, it is important to understand not only the letter of the real estate law but also the customs and rules of the real estate profession. That means that a real estate attorney can be a better real estate attorney if he or she is also a real estate broker.
Example: Buyer and buyer broker would use this agreement and addendum when the buyer is entering into a lease with an option to purchase.
Example: Buyer and buyer broker would use this agreement and addendum when the buyer is buying commercial property or a business opportunity.
Example: Buyer and buyer broker would use this agreement and addendum when the buyer is buying property which does not qualify for financing due to bad condition and where seller financing is involved.
Example: Buyer and buyer broker would use this agreement and addendum when the buyer is buying on a wrap-around, an assumption, a lease option, or a short sale.
Example: Buyer and buyer broker would use this agreement and addendum when the buyer is serving as a trustee for an actual buyer and wants to do due diligence and avoid any potential for liability.
Example: Buyer and buyer broker would use this agreement and addendum when the buyer wants the feeling of security that comes from having legal review from beginning to end, with no fee until closing.
Advantages to Brokers
Brokers earn their commissions by marketing property, not by writing legal documents. Broker’s have errors and omissions insurance, but it may not cover them when they act outside the normal scope of brokerage, when they answer complex legal questions, or draft documents other than MLS approved, fill in the blank forms. Having an attorney on board from the beginning can help a broker secure a listing. Sellers will take a broker more seriously if the buyer broker is part of a team that includes an experienced real estate attorney-broker. This is especially true for brokers who are new in the business. And having an attorney on board can help a broker to sleep easier at night.
Should You Involve a Lawyer? And When? And Which Lawyer?
Most residential deals close without a lawyer even looking at them. The MLS forms have improved greatly since the days of the one page contract. Usually there are no problems. But always there are questions. And sometimes there are questions and problems. Having a lawyer involved from the beginning can avoid problems, reduce tension, inspire confidence, and smooth out the process.
Most buyers do not get an attorney lined up in advance of sale. When something goes wrong, they seek out a lawyer in haste. It might be too late to undo the damage. The lawyer will charge a large fee just to get familiar and stay familiar with the transaction. The Seller might pick a lawyer who does not have sufficient experience in transactional real estate law. Law schools do not teach transactional real estate law, MLS forms, MLS rules, or broker customs. In my three real property courses in law school, we discussed obscure rules which never come up, such as the Rule in Shelly’s Case or the Rule Against Perpetuities.
I charge a flat fee payable at closing. That is better than an hourly legal fee arrangement. Hourly billing discourages buyers from communicating freely with the lawyer. Hourly billing means that the lawyer is often not fully informed and may not have all the information needed to give good advice. The end result may be poor quality legal service and a failed transaction.
When I charge a flat fee payable at closing, I usually make more money. That’s good for both attorney and client. If I make more money, I can afford to spend more time looking at all details of the transaction – from the very beginning to the very end – ahead of time instead of in reaction to a problem which has arisen.
Getting a lawyer lined up in advance is like having insurance – just in case the worst happens.
With multiple offers and with quick decisions being made, even ordinary sales are getting more complex. Brokers generally appreciate it when their clients engage an attorney, especially one who understands MLS rules and broker customs.
According to the Washington Supreme Court the sale of real estate is the practice of law. Google for Cultum v. Heritage House Realtors, Inc., 103 Wn.2d 623, 1985. The sale of real estate by real estate brokers is “the authorized practice of law by non-attorneys”. Brokers may act as real estate attorneys, provided that they use standard, attorney-approved, fill-in-the-blank forms. For a person who is both a broker and an attorney, it is completely appropriate for him to accept his payment at closing as a real estate commission instead of taking payment by the hour as a legal fee.
Although I will be providing both real estate and legal services, I will be compensated as a real estate broker and receive my fee as a commission at closing. If there is no closing, there is no fee.
And Why James Robert Deal, Attorney-Broker?
I have been doing all things real estate since 1980. And I am a broker, so I also know the MLS rules and broker customs. I have written, reviewed, or closed hundreds of real estate transactions. I ran an escrow department in my law office for twenty years until I got tired of handling millions of dollars of other people’s money. Title company escrow departments can generally do a better job of closing escrow. Then I ran a mortgage company for five years. I am a licensed but inactive mortgage broker. I do only commercial loans. I have handled tax-deferred exchanges, foreclosures, and bankruptcies. My wife is a broker and assists me. I am an experienced landlord.
In modern real estate, brokers work in teams. As an ancillary co-broker I will be working as part of a buying team which includes the Primary Buyer Broker.
From the Buyer’s point of view this co-brokerage arrangement eliminates the hot flashes that come when receiving an attorney invoice. Buyers generally prefer to pay at the end of the process for a job well done than to pay by the hour for work which may not result in a job well done.
From my point of view, this arrangement is advantageous because it eliminates the inefficiency of having to bill by the hour. Under this arrangement, the Seller and the Primary Broker will feel free to use more of my time, as much time as needed, whereas when I bill by the hour, buyers and brokers are hesitant to call me when they should. I will stay better informed regarding the transaction. When I am paid a flat fee at closing, I generally collect a larger fee than when I work by the hour. This means I can afford to put more time into advising the buyer and the primary buyer broker. I can deliver a better service than if I work on an hourly basis. And frankly, I enjoy the process more.
Services to be Provided
As ancillary co-broker, I agree to perform the following work:
I agree to assist the Buyer and the Primary Buyer Broker in obtaining the best price possible. I agree to provide comprehensive legal review of all documents involved in this transaction, to advise the buyer and the Primary Buyer Broker regarding legal issues, and to respond and communicate with the seller’s lawyer if the seller has one. I will review and advise the Buyer regarding the purchase agreement, the title report, the Form 17 property condition disclosure, all offers and counter offers, all inspection documents, and all closing documents. I will follow the transaction all the way through from initial signing to closing. I will assist with multiple offer situations. My commitment extends to all legal issues directly related to this listing and sale. I am available on weekends.
However, I am not agreeing herein to appear in any suits, arbitrations, or mediations. If conflicts arise, I will try to help resolve them without litigation. If litigation does arise, I will help the Buyer select a litigation attorney and help the litigation attorney to gather needed information.
I will work for the Buyer with the assumption that the Buyer wants to buy. If the Buyer decides to back out of a purchase agreement after signing it, the Buyer will have to retain another attorney to help the Buyer do that.
Keller Williams Everett carries errors and omissions insurance which covers me as a real estate broker. I carry errors and omissions on my own which covers my work as an attorney.
The Co-Broker Agreement
The Seller agrees to pay to the Primary Listing Broker the percentage listed in the standard listing agreement, Form 1A.
The typical selling commission for the Primary Buyer Broker is 3.0%, although commissions are negotiable up or down. My commission as an ancillary buyer co-broker is payable at closing. The Buyer agrees to pay to Keller Williams Everett and to James Robert Deal at closing, a co-brokerage commission of _______________ percent of the sale price or a flat fee of $_______________. This is in addition to the regular buyer broker commission. (Optional): The Primary Buyer Broker agrees to reduce his or her commission by _______________ percentage or by $_____________ to cover part or all of the buyer co-broker commission. My commission can be negotiated up or down before this Buyer Co-Broker Agreement is signed. The level depends on the complexity of the transaction and which party or parties pay my commission or split my commission.
Mutual Cooperation – Non-Competition
The Seller, the Primary Listing Broker, and I are all signing this agreement to confirm that we all agree to work together in a professional manner as spelled out in this Co-Brokerage Listing Addendum.
Deal will respect the primary relationship between the Primary Listing Broker and the Seller and will not steal the Primary Listing Broker’s clients.
James Robert Deal, Ancillary Co-Broker: __________________________
Primary Listing Broker: __________________________
James Robert Deal
Real Estate Attorney & Real Estate Managing Broker
PO Box 2276 Lynnwood WA 98036
Law Office Line: 425-771-1110
Broker Line: 425-774-6611
KW Everett Office Line: 425-212-2007
I help buyers, sellers, brokers. Flat fee payable at closing.
Property search: JamesRobertDeal.com
I am a real estate transactional attorney. There is no charge for inquiries by phone or email. I can often quote a flat fee payable at closing.
The Dodd Frank Act restricted seller financing. It made due-on-sale clauses enforceable. However, lenders generally do not require payoff as long as the buyer pays the payments.
Small Cell Towers Outside Your Window - Harmful - Reduce Property Values...
Electricity can't be stored, so when I turn on a light, the power station must immediately produce some extra electricity. How is this possible?...
Is anybody contending that oil is being replenished within the earth? Keith Hisey, Geologist, Researcher, Senior Manager, Historian at Consulting...
Q: I am having trouble renting an apartment because of a dismissed Chapter 13 Bankruptcy. Can it be removed from credit reports since I did not...
Attorneys should also become real estate agents or brokers and joint the JR Deal KW Attorney-Broker Team, a part of Keller Williams.
The final walk through is important when buying a new home. Make a punchlist. Listed items can be changed after closing. Expect a final inspection one year after closing.
Why does Social Security pay so little in retirement? Jeanine Joy, Ph.D., CEO, Trainer, Speaker, Author, Researcher at Happiness 1st Institute...
For Sellers, Move-Up Buyers, Selling Myths The #1 Reason to List Your House in the Winter · 2.1Kshares · 1.9K · 82 · 33...
JAMES ROBERT DEALREAL ESTATE ATTORNEY REAL ESTATE MANAGING BROKERCOMMERCIAL MORTGAGE BROKERKW EVERETT 425-774-6611James@JamesDeal.com I am...
Why Are Rich People So Mean? Call it 'Rich Asshole Syndrome'—the tendency to distance yourself from people with whom you have a large wealth...
I am a real estate broker and a real estate attorney. I help buyers, sellers, and other brokers throughout Washington. Call me at 425-774-6611 when your purchase or sale involves legal issues. I can often quote a flat fee payable at closing.
Is MMR Vaccine a Fraud or Does It Just Wear Off Quickly? by Joseph Mercola, DO | Guest Writer Published May 8, 2018 | Vaccination, Risk &...
LED Street Lights Reduce Property Values - Harm Eyes wear blue blockers AMA adopts guidance to reduce harm from high intensity street lights ......
www.JamesRobertDeal.org/smart-meters Cell Towers, Smart Meters, 5G - They All Depress Property Values Cell Towers, Antennas Problematic for Buyers...
From James: Smart meters reduce the value of your property. They cause fires. Some damage caused by electrical surges are not covered by insurance....
Anti-vaxxer want informed consent and liberty Ada Drinkwater, Wife mother grandmother great grandmother Liberty & informed consent are not only...
New York Times – Another Industry Captured Corporation – 5G Must Be Good Because Evil RT Warns It Is Unsafe
From James Robert Deal: Too much microwave radiation will make our cities and towns hard to live and work in. We will be fried by smart meters and...
The US Institute of Medicine concluded that the evidence is inadequate to accept or reject a causal relationship between the DTap vaccine and...
Please just overlook the atrocious grammar in three of these. They are not editable but they ARE too good to delete. Contentment is not the...
CLICK HERE TOSIGN UP FOR A BETTER PROPERTY SEARCH TOOLYou will be asked for your email address and your telephone number.You do not have...
Eliminate traffic congestion. James Robert Deal managing broker. Become a real estate agent.
Reality check: Don’t fall for these TV home renovation fibs Kitchen and bathroom remodels can cost more and take longer than HGTV shows lead you to...
From James: Some points are valid. Some are not. But this is well written and sometimes funny. One of government’s problems is that elected...
The Top 8 Real Estate Calculations Every Investor Should Memorize by Andrew Syrios | BiggerPockets.com...
An additional inspection can cut short the time for the original inspection QUESTION: I’ve always been under the impression that when a buyer sends...
10 Lethal Mistakes to Avoid on Your First Real Estate Investment by Chad Carson | BiggerPockets.com...
Click here if you are having trouble viewing this message. Weekly Membership Newsletter JANUARY 8, 2019 • Stay Connected! QUESTION: I have been...
4 Different Types of LLCs and the Ways They Pay Taxes by Scott Smith | BiggerPockets.com...
Why I Walked Away from a 118-Door Apartment, 10 Essential Real Estate Team Members & What to Do When Your Tenant Gives Notice
Support Our Sponsors: For Accredited Investors Only. Syndicator of multifamily investments, Ashcroft Capital. Co-founder, Joe Fairless,...
What Buyers Should Ask After a Home Inspection October 9, 2018 After an inspector has finished a home report, buyers may feel overwhelmed by any...
29 Door Knocking Resources for Successful Lead Generation Posted by REDX January is the perfect time to door knock. Most people wait until the...
Radio – 9-16-2018 8 PM Eliminating Traffic Congestion 9 PM Buying Real Estate in Partnership – James Robert Deal – Attorney Broker
JR-DEAL-NEWZ-9-16-2018 WASHINGTON POLITICS JAMES ROBERT DEAL, BROKER, ATTORNEY, ENVIRONMENTALIST, AMATEUR MUSICIAN Radio Program – Sunday, September...
Choosing Your Domain in the Age of Dot ANYTHING Written by Saul Klein Posted On Friday, 14 September 2018 13:00 ·...
5 Mistakes Home Sellers Make Written by David Reed Posted On Friday, 14 September 2018 21:56...
If you do not have enough income to qualify to buy a home, join together with several others. But a larger home, big enough for several families. With multiple incomes you can qualify. If you want privacy you can jointly buy a tri-plex or a four-plex. These can be bought with an FHA loan with only 3.5% down.
CITY COUNCIL DENIES APPEALS OF CELL TOWER INSTALLATION Sam Catanzaro , Santa Monica Mirror, August 31, 2018 Wireless carrier Sprint wants to install...
15605 Cascadian Way Bothell Washington. $430,000. 3 bedrooms, 2 bathrooms. Buy on FHA Rehab Loan. Hold long term. Eventually sewers may be extended 400 feet, and then two homes, two duplexes or five townhouses can be built. James Robert Deal, Attorney and Broker, 425-774-6611.
Survey by the National Institute for Science, Law & Public Policy Indicates Cell Towers and Antennas Negatively Impact Interest in Real Estate...
Reciprocal Usage Easements? What is the Purpose? Many buildings that were constructed prior to the 1960s lacked adequate parking, and/or even...
Shortening the Limitations Period on Credit Card Collection Lawsuits Jon Sheldon August 6, 2018 Print/Download Email link to this article CONTENTS ·...
The Downsides Of Selling A “Smart Tech” House Posted on August 4, 2018Natural Living · · · · · · ·...
Student Loan Repayment Rights: Consumer Debt Advice from NCLC Joanna Darcus August 2, 2018 Print/Download Email link to this article CONTENTS...
Just a few years ago, experts indicated Americans (especially young Americans) were more interested in a different lifestyle than previous...
Selling Your Home Solo to Save Money? You’ll Actually Make Less Than You Think Posted in Economist Commentaries, by Amanda Riggs on July 9, 2018 385...
RENEW FLOOD INSURANCE BUT QUIT SELLING NEW COVERAGE AND QUIT BUILDING NEW HOMES IN FLOOD ZONES SEA LEVELS ARE RISING Can't read or see images? View...
Climate Change Will Force the Poor From Their Homes Low-Lying towns and Homes in Washington will be affected too Alamy This story originally...
18809 65th Place West Lynnwood WA 98036. This house has “good bones.” It needs fixup, cleanup, and your love.